By Deborah Mary Sophia and Aatrayee Chatterjee
(Reuters) – Mondelez International Inc topped market expectations for quarterly results on Tuesday, boosted by resilient demand for chocolates and snacks, but warned its European business could take a hit in the current quarter from price hikes.
Packaged food makers have steadily raised prices to protect their profits from rising costs amid little to no pushback from consumers, who are willing to pay more for their favorite brands instead of trading down to cheaper alternatives.
While that helped Mondelez record a surge in quarterly revenue from North America and Latin America, its European business took a hit from soaring energy costs in the region.
The Cadbury chocolate maker said it had announced another round of price hikes in Europe, which could hurt its first-quarter margins as retailers push back against the move and the disruption “might also continue” into the…
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