Mondelez International (MDLZ) - Get Free Report jumped Wednesday after the maker of Oreo cookies, Sour Patch Kids candy and Toblerone chocolate beat Wall Street's third-quarter revenue and raised its sales forecast.
Shares of the Chicago company at last check were up 2% to $62.60.
Mondelez reported net income of $1.26 billion, or 89 cents a share, compared with $1.12 billion, or 78 cents a share, in the year-earlier quarter. Adjusted earnings came to 71 cents a share, beating analysts' consensus estimate, derived from a FactSet survey, of 70 cents a share.
Revenue totaled $7.2 billion, up 7.8% from a year earlier and beating the FactSet consensus calling for $7.1 billion.
The revenue increase was driven by a 5.5% increase in organic net revenue, or revenue generated from within a company, as well as favorable currency, and incremental sales from the company's acquisitions of Hu, Grenade and Gourmet Food.
Pricing and volume drove organic net revenue growth, the company said.
Looking ahead, Mondelez said that it now expected organic net revenue for the full year to grow about 4.5%, compared with its forecast of a more than 4% increase. Analysts on average were expecting 4.25%.
"Like other companies, we are experiencing cost inflation globally, particularly on transportation cost and packaging which are most pronounced in U.S.," Dirk Van de Put, chairman and chief executive, said during a conference call with analysts.
"Costs have moved higher in the second half of the year relative to the first half and we expect inflation to persist in 2022."
Van de Put also said Covid-19 continues to disrupt operations in certain geographies.
"This was felt most acutely in Q3 in Southeast Asia and resulted in a temporary closure of our factory in Vietnam, for example," he said.