(Reuters) -Mondelez International Inc topped Wall Street estimates for quarterly revenue on Thursday, as the Oreo cookie maker benefited from higher prices and strong demand for its chocolates and biscuits in emerging markets.
Packaged food makers have been struck by soaring shipping and labor expenses due to a strained supply chain, while surging demand for wheat, sugar and other commodities has driven up raw material costs forcing companies to raise product prices.
Mondelez, like peers Conagra Brands and Kraft Heinz, has resorted to price hikes. Higher prices, coupled with strong consumer demand, helped boost Mondelez revenue.
Consumers across China, India, Latin America and other emerging markets have also driven up demand for Mondelez’s snacks, sending net revenue from the company’s emerging markets segment up 8.8% at $2.69 billion.
Net revenue rose to $7.66 billion in the fourth quarter ended Dec. 31 from about $7.3 billion a year earlier, topping analysts’ average estimate of $7.59 billion, according to Refinitiv IBES data.
Net earnings attributable to the company fell to $1.0 billion, or 71 cents per share, from $1.16 billion, or 80 cents per share, a year earlier.
(Reporting by Deborah Sophia in Bengaluru;Editing by Vinay Dwivedi)