Mondelez International, the maker of Oreos and Cadbury chocolate, reported a slump in holiday-quarter sales and profit due to a strong dollar.
Net revenue fell 8.1 per cent to $6.77bn in the quarter. Analysts on average had expected revenue of $6.89bn, according to Thomson Reuters estimates.
The strong pound hit the value of sales outside the US, with sales in Mondelez's largest market Europe down 4.7 per cent. They did though, edge up on a constant currency basis.
Why it's interesting
The company has been one of many to mull price rises and last month increased the price on some of its products to cope with higher commodity costs and a weaker pound. You may have heard the outcry over the increasingly expensive Freddo – on the rise to 30p…
Elsewhere, Mondelez angered Toblerone fans in November last year by changing the shape and size of the popular, mountain-inspired bar.
Read more: Mondelez axes Hershey merger plan
What the company said
"We continue to make solid progress toward our near-term margin targets, while investing for long-term growth," said Irene Rosenfeld, chairman and chief executive.
Despite significant economic disruptions, political uncertainties and slower global category growth, we remain confident in and committed to our balanced strategy for both top- and bottom-line growth.
Throughout the year, we continued to sharpen the focus of our portfolio, increase Power Brand investments and modernise our supply chain.
These actions, together with our excellent cost discipline, position us well to deliver strong operating leverage that will drive sustainable value creation for our shareholders.