(Reuters) -Mondelez International Inc raised its full-year sales and profit forecasts on Tuesday, betting that consumers would continue to purchase its chocolates and biscuits despite higher prices.
Shares of the Chicago-based snack maker rose about 2% in aftermarket trading.
While surging inflation and fears of a recession have dampened consumer spending, shoppers still seem willing to indulge on “affordable luxuries” such as their favorite snacks and beverages instead of switching to cheaper brands.
Mondelez (NASDAQ:) joins companies such as Cheerios maker General Mills Inc (NYSE:) and soda giants Coca-Cola (NYSE:) Co and PepsiCo (NASDAQ:) Inc in lifting forecasts, as it has seen minimal pushback from consumers to higher prices.
The Oreo maker said it now expects 2022 organic net revenue to increase more than 10%, compared with its prior estimate for a more than 8% jump.
It forecast 2022 adjusted profit to grow over 10%, on a constant-currency basis, compared with its previous expectation for mid-to-high single-digit growth.
Story Credit: investing.com