Mondelēz International Inc. – maker of “power brands” like Oreo, Chips Ahoy!, Ritz, Cadbury Dairy Milk and Trident gum – is boosting its profitability by putting the consumer “at the center of everything we do,” says CEO Dirk Van de Put, who took the top post in November.
The Deerfield, Ill.-based company’s first quarter net income rose nearly 50%, to $938 million, or 62 cents per share, beating Wall Street expectations. The company, which sells products in about 160 countries, is benefitting from “encouraging” snacking category growth trends, especially in emerging markets, with total net revenues rising 5.5%, to $6.76 billion.
“I’m pleased to say that 2018 is off to a good start,” Van de Put said on the company’s earnings call with analysts. “We have improving top line momentum, as well as continued margin and EPS expansion.”
As the company continues to improve operations after a significant restructuring during the tenure of its former CEO, Irene Rosenfeld, Mondelēz is “moving in the right direction” — thanks to advantages that give it a leg up on its competitors, he said.
“First, we have a strong stable of iconic brands,” Van de Put said. “Second, our geographic footprint is favorably balanced with about three-quarters of our revenues coming from outside of North America. And third, we maintain leading positions in snacking, where global category growth trends are improving. With these powerful assets, I remain confident that our company is well positioned to succeed.”
The key to unlocking more value for shareholders, he said, entails first becoming a truly customer-centric company – understanding more clearly when and why consumers snack and how Mondelēz can best deliver on those needs.
Secondly, the company “must execute with excellence every day,” building on the company’s significant margin improvement through restructuring. “These two simple mandates are critical to delivering our 2018 plan,” Van de Put said. “And they will underpin the strategic framework to deliver further sustainable growth over the long term.”
The company remains on target to complete a strategic review of operations by the end of this summer, and analysts say that may include plans for expansion by introducing new products as well as making more acquisitions.
Already Mondelēz has already struck one M&A deal under Van de Put, this month announcing plans to buy premium cookie maker Tate’s Bake Shop in Long Island, N.Y. for about $500 million.
“With a unique and authentic brand and truly delicious products, this acquisition gives us an attractive entry point into the fast growing premium cookie segment,”Van de Put said.
Last month the new CEO became chairman of Mondelēz’s board of directors. Van de Put joined the company after serving as president and CEO of McCain Foods Ltd., a $9.1 billion CAD ($7.3 billion USD) privately held Canadian company that is the largest marketer and manufacturer of frozen french fries, potato specialties and appetizers with sales in more than 160 countries.
He’s No. 109 on Chief Executive and RHR International’s CEO1000 Tracker, a ranking of the top 1,000 public/private companies.
Headquarters: Deerfield, IL
Age: 57
Education: Ghent University (Belgium), University of Antwerp (Belgium)
First joined company: 2017
Key positions before joining company: President & CEO McCain Foods Limited; Global OTC Division President, Novartis Inc.
Named CEO: 2017
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
0
1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
