Correction to Mondelez Story

By Imani Moise Features Dow Jones Newswires

Mondelez International Inc. reported a rise in quarterly sales for the first time since the third quarter of 2013 as demand increased for the company's staple brands in the U.S and Europe.

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The maker of Oreo cookies, Trident gum and Triscuit crackers said comparable sales grew 2.8%, fueled by sales of core brands like belVita biscuits and Cadbury Dairy Milk chocolate.

The earnings report Monday was Chief Executive Irene Rosenfeld's last at the company's helm after leading it for 11 years.

Shares rose 5.5% to $41.45 post-market after having fallen 3.4% in regular Monday trading. The stock had fallen 11% so far this year.

Mondelez, like other large packaged-food companies, has been working to adapt to changing U.S. consumer preferences, but recently snacks and candy have been more popular than other packaged foods. Hershey Co. also reported higher-than-expected earnings last week, signaling that snack-focused companies are faring better in the tough food retail environment.

While battling declines in U.S. sales, Mondelez has looked abroad for growth. In the most recent quarter, sales in emerging markets jumped 4.5% to $2.45 billion, representing over a third of sales. Sales in North America also grew 1.3%, mostly driven by an uptick in volume.

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Packaged-food stocks have faced increasing investor pressure amid slowing sales in the U.S. Companies have taken steps to address the shift in consumer tastes toward foods perceived as healthier by removing artificial flavors from foods and selling reduced-fat versions of legacy products.

However, some investors have grown impatient waiting for a turnaround. Shares in Kraft Heinz Co., Conagra Brands Inc. and Kellogg Co. have each fallen between 10% and 20% so far this year.

In response, some companies, including General Mills Inc. and Hershey, have shaken up their leadership. Ms. Rosenfeld will be succeeded by Dirk Van de Put, an outsider to the company.

Last week, Mondelez named Coca-Cola Co. executive Glen Walter to head its business in the U.S. and Canada, which generates about $7 billion in annual revenue. Mr. Walter is expected to join the company in November.

In all for the third quarter the Deerfield, Ill.-based company reported earnings of $992 million, or 65 cents per share, up from $548 million, or 35 cents per share, a year earlier. On an adjusted basis per-share, earnings rose to 57 cents from 50 cents.

Revenue rose 2.1% to $6.53 billion. Gross margin rose 20 basis points to 39.1%.

Analysts polled by Thomson Reuters had forecast earnings of 54 cents on $6.45 billion in sales.

Write to Imani Moise at imani.moise@wsj.com

Corrections & Amplifications

This article was corrected at 7:04 p.m. ET to reflect that Mondelez International Inc. last reported comparable-quarter revenue growth in the third quarter of 2013. The original version of this article incorrectly stated it last saw quarterly revenue growth in June 2012.

Mondelez International Inc. last reported comparable-quarter revenue growth in the third quarter of 2013. "Mondelez Reports Sales Increase" at 4:46 p.m. ET followed by subsequent updates at 4:54 p.m. ET and 6:13 p.m. ET incorrectly stated it last saw quarterly revenue growth in June 2012.

(END) Dow Jones Newswires

October 30, 2017 19:17 ET (23:17 GMT)