Agritech startup Grow Indigo secures $8 Million in funding to fuel sustainable agriculture innovation

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February 2, 2024

Agritech startup Grow Indigo has recently secured $8 million (INR 67 crore) in a strategic funding round, with contributions from key stakeholders including Indigo Ag and Mahyco (Maharashtra Hybrid Seeds Co).

The funding round also witnessed the involvement of several angel investors, bringing the total funds raised by the startup to $23 million so far.

Without specifying what the fresh proceeds will be utilized for, the company has emphasized that the capital will be deployed to drive the future of sustainable agriculture.

“With sustainability at its core, we have now demonstrated adoption of biological inputs and carbon solutions at scale by farmers,” said Grow Indigo’s executive chairman Usha Barwale Zehr.

This comes after more than a year since Grow Indigo raised $6 million in funding from Indigo Ag, Mahyco, and other high-net-worth individuals (HNIs) in December 2022.

Established in 2018 as a joint venture between Indigo Ag and Mahyco, Grow Indigo operates an agri-marketplace connecting retailers and farmer producer organizations (FPOs) with agricultural brands. The platform also offers carbon farming solutions for small-scale farmers and sells various biological products.

The Mumbai-based agritech company asserts that it has served over 1 crore farmers and over 1 lakh retailers and farmer producer organizations (FPOs) to date. Having enrolled over 8 lakh acres of land in its carbon farming program, the company aims to expand this figure to 35 lakh acres in the next two years.

Continue Exploring: Shilpa Shetty-backed agritech startup KisanKonnect secures INR 31 Crore in pre-series A funding led by Green Frontier Capital

At present, Grow Indigo asserts its presence in 12 Indian states and maintains a team of 200 employees, including agronomists, data scientists, and researchers.

This comes at a time when Indian agritech startups are experiencing a renewed interest from investors. Despite being the backbone of the country’s economy, Indian agriculture is still plagued by archaic practices and lower yields.

Indian agritech players aim to bridge this gap by leveraging technology to address these challenges. Consequently, the funding raised by these startups has experienced a significant surge in recent years.

In 2023, as many as 10 funds were dedicated to supporting Indian startups, specifically focusing on the agritech sector. Notable participants in this space include CropIn, Waycool, and DeHaat.

However, the funding winter has impacted the agritech sector. According to available data, Indian agritech startups raised more than $208 million in 2023, compared to the $817 million raised in 2022.

Continue Exploring: Agritech startup Fasal secures $12 Million in funding round led by TDK Ventures, British International Investment

Wow! Momo’s rapid expansion continues with a buzzing new outlet at GMR Hyderabad International Airport

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February 2, 2024

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Wow! Momo, a Kolkata-based QSR, has expanded its presence by launching a new outlet at the GMR Hyderabad International Airport, as announced in a social media post by a GMR official.

“A brand which started in 2008 by four founders with a vision to create a desi QSR brand with the concept of desi Momo chain “Wow Momo” is now open at GMR Hyderabad International Airport Ltd,” said Prem Khatri, Business Development Manager, GMR Group in a LinkedIn post.

“The brand is located on the ground floor at the much-happening place of Hyderabad- Aero Plaza a place envisaged within the Airport for people to enjoy with your friends & family whether you are a passenger or non-passenger. Welcome Wow! Momo to Hyderabad Airport,” added Khatri.

The newly opened outlet is situated on the ground floor of Hyderabad Aero Plaza.

Since its establishment in 2008, Wow! Momo has experienced significant growth, boasting a presence of over 650 stores throughout India. The brand operates across three formats: Wow! Chicken with 42 stores, Wow! China with 153 stores, and Wow! Momo with a remarkable presence of over 460 stores in 32 cities nationwide. These establishments are strategically located in various states, including Bihar, Delhi, Goa, Gujarat, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal.

Established by Sagar Daryani and Binod Homagai, Wow! Momo witnessed a remarkable 2X surge in revenue from operations, reaching INR 219.8 crore in FY21-22. This marked a substantial increase from the INR 106 crore recorded in the preceding year.

Continue Exploring: Wow! Momo reports massive 2x revenue surge in FY2021-22, reaches INR 219.8 Crores

Last month, Wow! Momo secured over INR 350 crore in funding from Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia. This financial infusion involves both primary capital injection and a secondary purchase from early-stage investors, including the Indian Angel Network and Lighthouse Funds.

Looking ahead, Wow! Momo has strategic visions for its next phase of evolution, which involve plans for an IPO, global expansion, and venturing into the packaged foods market.

Continue Exploring: Wow! Momo Foods secures INR 350 Crore funding led by Malaysia’s Khazanah Nasional Berhad, eyes aggressive expansion

Bata reports 31% drop in net profit due to muted demand for footwear

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February 2, 2024

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Footwear brand Bata India Ltd reported a 31.04% decrease in its net profit and a 0.7% upturn in total income for the third quarter ending in December. This shift was attributable to weakened demand, notably in premium categories.

The net profit for the third quarter of this year dropped from INR 83.11 crore to INR 57.31 crore, while the total income increased from INR 907.72 crore to INR 914.26 crore compared to the same period last year.

Continue Exploring: Bata enhances customer experience through Easyrewardz’s Zence CRM for ‘BataClub’

Gunjan Shah, MD and CEO of Bata India Limited, said, “Despite persistent market headwinds accentuated in discretionary spending, we continued to invest in new product launches, enhancing customer experience and expanding our reach across channels & markets.”

During the quarter, Bata enhanced its presence by incorporating 54 new stores through a blend of franchise and company-owned operations. Additionally, 36 existing stores underwent renovation.

Shares of Bata India Ltd concluded the trading day on the BSE at INR 1459.6 apiece, reflecting a 1.93% decline.

FSSAI revises order allowing regional names on curd labels amidst political controversy in Tamil Nadu

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February 2, 2024

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On Thursday, the Food Safety and Standards Authority of India (FSSAI) revised its order, permitting the use of regional names on printed labels of curd packets amidst political controversy in Tamil Nadu.

Food Business Operators (FBOs) are now permitted to include the term ‘curd’ along with any other widely used regional common name in brackets on the label. For instance, ‘Curd (Dahi)’ or ‘Curd (Mosaru),’ ‘Curd (Zaamutdaud),’ ‘Curd (Thayir),’ ‘Curd (Perugu)’ can be utilized, as stated by the Food Safety Standards Authority of India (FSSAI).

The revision of the order was prompted by several recent representations highlighting concerns about the exclusion of the term ‘curd’ from the Standards of Fermented Milk Products, with only the word ‘Dahi’ being specified.

The controversy erupted when the Tamil Nadu Cooperative Milk Producers Federation, known for selling dairy products under the brand name Aavin, declined to use the Hindi term ‘Dahi’ in its printed sachets as directed by FSSAI. Instead, the federation insisted on exclusively using the Tamil word ‘Thayir’.

Continue Exploring: Amul vs Aavin: Fresh controversy erupts as dairy giant faces Tamil Nadu firefight, following recent Karnataka row

On Wednesday, Tamil Nadu Chief Minister M K Stalin decried the move as an attempt to ”impose Hindi”. Dairy Development Minister SM Nasar said the government had received a letter asking it to implement the directive before August.

“The unabashed insistences of #HindiImposition have come to the extent of directing us to label even a curd packet in Hindi, relegating Tamil & Kannada in our own states. Such brazen disregard to our mother tongues will make sure those responsible are banished from South forever,” Stalin said in a tweet.

BJP state unit chief K Annamalai has said the notification was not in tandem with the Centre’s policy of promoting regional languages.

Continue Exploring: Akshayakalpa invests INR 15 Crore to establish state-of-the-art dairy ecosystem in Tamil Nadu

The Ayurveda Company sets aggressive target of 50K sales touchpoints in tier 2 and tier 3 towns by Diwali 2024

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February 2, 2024

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The Ayurveda Company (T.A.C.), a D2C personal care brand, is setting its sights on reaching 50,000 points of sale in the general trade (GT) market across tier 2 and tier 3 towns by Diwali 2024. This ambitious target aligns with the pan-India launch of TAC Bharat, as detailed in a recent media release.

The company is strategically expanding the reach of its new collection to areas that currently lack online retail services. This initiative aims to foster stronger connections with diverse consumer segments and gain valuable insights into their preferences and needs.

Param Bhargava, Founder at T.A.C said, “The name TAC Bharat embodies our commitment to growth and new opportunities in India’s rising towns, mirroring the dreams of its young people. The product designs are aligned with our distribution model, ensuring success in these markets. This channel will enable us to achieve profitability by FY 2025.”

“Our target is to reach 50K touchpoints by Diwali 2024, supported by media and BTL activations & building an entire network on the cash & carry model,” said Sanjiv Gupta, the chief advisor at T.A.C.

Continue Exploring: D2C ayurveda brand Kapiva hits INR 114 Crore revenue milestone in FY23, eyes global reach

Additionally, T.A.C. has appointed Mukund Raut as the head of marketing, where he will play a crucial role in building the brand for the general trade market with strong demand generation inputs.

As per the company’s statement, Shekhar Singh, the vice president, will lead the offline team in spearheading the development of the entire front end. This encompasses the strategic hiring of over 100 super stockists and the onboarding of more than 800 distributors within the calendar year, capitalizing on their extensive sales expertise.

Additionally, the D2C firm is set to launch more products and expand its product line to solidify its position as a growing brand in the Ayurvedic lifestyle sector, backed by experts.

Murthal sips into Starbucks culture as new 24-hour store unveiled

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February 2, 2024

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Starbucks, the US-based coffee chain, recently unveiled a new store at Mannat Haveli in Murthal (Sonipat) along the Chandigarh-Delhi highway, as announced by a company official on social media.

“Finally, we have launched a Starbucks store in the hottest FnB hub of North India, Murthal (Sonipat) at Mannat Haveli on the Chandigarh-Delhi highway. We will be open 24*7 to serve you, making this first Starbucks store on a highway to operate round the clock,” said Rahul Chaudhary, Business Development – North, Starbucks India in a LinkedIn post.

“So next time when you stop at Murthal to grab your parathas, do pair it up with a cup of your favourite Starbucks coffee while sitting inside the store enjoying the cosy interiors or enjoying your beverage outside under the night sky in our aesthetic outdoor seating area,” Chaudhary added.

As per reports, about 6% of Starbucks’ 390 locations in India, totaling around two dozen stores, are currently run exclusively by female staff.

In 2023, Starbucks expanded its presence in India by inaugurating 71 new stores, entering 15 additional cities. The Seattle-headquartered beverage company expressed its commitment to doubling its workforce, aiming for approximately 8,600 partners. This growth strategy includes penetrating tier 2 and 3 cities in India and expanding services to encompass drive-thrus, airports, and 24-hour store formats to meet the diverse needs of customers.

Starbucks outlets in India are managed by Tara Starbucks Ltd., a joint venture equally shared between Seattle’s Starbucks Coffee Co. and Tata Consumer Products Ltd. Since its inception in 2012, the brand has experienced successful growth, with a presence of over 390 stores spanning 54 cities in India. With an employee base of around 4,300, Tata Starbucks has emerged as a significant player in the Indian coffee market. Setting ambitious goals, Tata Starbucks envisions operating 1,000 stores in India by the year 2028.

Continue Exploring: Starbucks CEO bullish on India’s coffee market, targets 1000 cafes by 2028

Raymond Group’s Q3 profits surge, nearly doubling to INR 185 Crore amidst strong segment performances

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February 2, 2024

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Raymond, a diversified group, reported a nearly twofold increase in its consolidated net profit for the December quarter of Financial Year 2024, reaching INR 185.39 crore. This significant growth was driven by robust performances in the real estate and branded apparel segments.

According to a regulatory filing by the company, it recorded a net profit of INR 96.60 crore in the October-December period of Financial Year 2023.

The revenue from operations increased to INR 2,386.16 crore from INR 2,188.16 crore in the corresponding period of the previous year.

“The improved operating and financial performance during the quarter was led by strong revenue growth of 50% in real estate business and over 20% in the branded apparel business,” said an earning statement from Raymond.

This was “10th consecutive quarter of profitable growth,” it added.

In the December quarter, the total expenses of the firm controlled by the Singhania family amounted to INR 2,198.06 crore, marking an 11.16% increase.

The total income increased by 11.4% to reach INR 2,450.32 crore.

In the quarter, the textile segment generated revenue of INR 908.92 crore, while the shirting segment contributed INR 214.39 crore, experiencing double-digit growth across all brands.

Growth in the shirting segment reflects a strategic emphasis on casualisation and the introduction of newer designs. The segment reported an EBITDA margin of 13.9% led by revenue growth & operational efficiencies, it said.

Continue Exploring: Raymond redefines retail with its largest ‘The Raymond Shop’ in India

The apparel segment reported a revenue of INR 437.25 crore while garmenting section recorded a revenue of INR 281.19 crore driven by sustained demand in the US & Europe markets.

In garments, “EBITDA margin for the quarter stood at 10.8% mainly due to operational efficiency,” it said.

Within the engineering segment, the revenue from Raymond’s tools and hardware business was INR 107.59 crore, while the auto components segment contributed INR 109.27 crore.

The revenue generated from real estate and property development in the December quarter amounted to INR 438.98 crore.

“The business showcased a strong sales performance with 50% growth to INR 439 crore from INR 292 crore in the same quarter the previous year showing customer confidence and acceptance of our high-quality product coupled with a fast-paced construction momentum in the ongoing projects,” it said.

Meanwhile, in a separate filing, Raymond said its board in a meeting held on Thursday approved the winding up of Raymond Lifestyle (Bangladesh), a wholly-owned subsidiary of the company.

Raymond Bangladesh was incorporated to carry out apparel trading business in Bangladesh. However, it has not yet commenced any business activities and accordingly, it was considered to wind up the company.

Shares of Raymond Ltd on Thursday settled at INR 1,776.40 apiece on BSE, up 0.06%.

Interim Budget 2024 sets the tone for inclusive development, FMCG executives optimistic

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February 2, 2024

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Executives representing leading FMCG companies have praised the Interim Budget 2024, displaying confidence in the government’s commitment to fostering inclusive and sustainable growth for India.

As Finance Minister Nirmala Sitharaman presented the Budget in Parliament on February 1, the industry views it as laying the foundation for inclusive growth, leading to ‘Sabka Vishwas’ (everyone’s trust). The synergy of demography, democracy, and diversity, supported by ‘Sabka Prayas’ (everyone’s efforts), has the potential to fulfill the aspirations of every Indian.

Sharing his reaction on the Budget 2024, Krishnarao Buddha, Senior Category Head, Parle Products said, “During its final budget presentation before the upcoming elections, the government’s strategic approach appears to be focused on empowering rural India.”

The budget emphasizes support for the underprivileged – ‘Garib,’ ‘Mahilayen,’ ‘Yuva,’ and ‘Annadata’ (the poor, women, youth, and farmers).

“With these initiatives, we can expect a good response from the rural markets for FMCG in the mid to long term,” Buddha said.

Angshu Mallick, the Managing Director and CEO of Adani Wilmar, expressed appreciation for the government’s commitment to transforming India into a developed economy by 2047. He particularly commended the innovative implementation of Nano-DAP in agricultural areas, highlighting its capacity to empower farmers and promote environmentally sustainable practices. Additionally, he recognized the significance of the ‘Atmanirbhar Oilseeds Abhiyaan,’ considering it a crucial initiative aimed at attaining self-sufficiency in oilseed production.

Continue Exploring: Finance Minister Nirmala Sitharaman prioritizes farmers’ welfare and rural demand in Interim Budget, highlights direct financial aid initiatives

Resonating the thoughts, Buddha said, “This interim budget signals a step towards an Atmanirbhar Bharat, reducing reliance on imports and boosting the rural FMCG sector. With no changes in direct or indirect taxes, it ensures continuity and simplicity for consumers. Overall, this budget is a positive step towards sustainable growth and empowerment.”

Further, highlighting the budget’s deep commitment to long-term economic growth, Aasif Malbari, CFO, Godrej Consumer Products Limited (GCPL) said, “Continuing the path of fiscal consolidation is a positive sign for overall economic growth, which has the potential to boost consumption patterns in the long run.”

Malbari also observed encouraging indicators for overall economic growth and praised the emphasis on improving connectivity and infrastructure, signaling positive prospects for India Inc, including the FMCG sector.

While appreciating the emphasis on post-harvest activities, Nano-DAP application, and the Atmanirbhar Oilseeds Abhiyaan, Manish Aggarwal, Director, Bikano, Bikanervala Foods said, “We believe that additional support for domestic manufacturing, particularly incentives for local production of raw materials and packaging through schemes like PLI for the food processing industry, could have further bolstered the FMCG sector.”

Demonstrating optimism regarding the interim budget’s potential to keep the fiscal deficit in check, Meghal Sheth, Chief Financial Officer of Mars Wrigley India, commended India’s robust economic growth. He expressed admiration for the diverse set of initiatives focused on promoting investments, advancing renewable energy, and championing sustainability. Sheth believes that the government’s ambitious push to enhance domestically produced goods will strengthen manufacturing capabilities, stimulate job creation, and foster comprehensive economic development.

Lauding the government’s commitment to realizing the vision of making India a Viksit Bharat by 2047, Saugata Gupta, MD & CEO of Marico, also expressed appreciation for the substantial increase in capital expenditure allocation, fiscal prudence, and the establishment of a corpus for low or nil-interest-rate loans to promote entrepreneurship and innovation.

Continue Exploring: Mixed sentiments in food industry as Interim Budget unveils plans for economic growth

Mixed sentiments in food industry as Interim Budget unveils plans for economic growth

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February 2, 2024

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Finance Minister Nirmala Sitharaman presented the Interim Budget in the Parliament on February 1, outlining key plans for India’s economic growth. While the budget touched upon various sectors, leaders from the food industry expressed mixed reactions to the proposals.

Reacting to the pre-election Budget, Rajat Agrawal, CEO of Barista, said, “Govt has played safe with this budget, not much has changed as expected. Industry was looking forward to some much-awaited announcements which have still been parked for later.”

Agrawal specifically highlighted the issue of Input Tax Credit (GST), calling it a long-awaited agenda for the Food and Beverage (F&B) segment. He emphasized the need for the Finance Ministry to address GST credit on capital spending to alleviate the increased cost of doing business and thin profit margins.

“The Finance ministry should have at least looked at GST credit on Capital spend if not operations to start with. Cost of doing business has gone up significantly and margins are thin on account of non-availability of input tax impacting the overall business performance and returns,” Agrawal stated.

He proposed measures such as “special performance-linked incentivisation for brands opening up the network in tier 1 & tier 2 cities” and “cheaper credit for activation of easy and subsidised credit for business.”

Nirmala Sitharaman, in her budget speech, committed to promoting private and public investments in post-harvest activities, including aggregation, modern storage, supply chains, processing, and branding. Abhishek Sinha, CEO of GoodDot, welcomed the focus on post-harvest activities and the Atma Nirbhar Oil Seeds Abhiyan, emphasizing their positive impact on manufacturing and agri-processing.

Continue Exploring: Finance Minister Nirmala Sitharaman prioritizes farmers’ welfare and rural demand in Interim Budget, highlights direct financial aid initiatives

Sinha also appreciated the government’s commitment to ‘Net Zero’ by 2070 and urged the promotion of plant-based proteins for their multi-dimensional benefits.

“On a long-term horizon, it’s good to see GoI’s commitment to meet ‘Net Zero’ by 2070 through viability gap funding for wind energy, roof solarization, adoption of e-buses for public transport network and strengthening the e-vehicle ecosystem manufacturing and charging infrastructure,” Sinha commented.

Prabhu Gandhikumar, Founder of TABP Beverages and Snacks Pvt. Ltd, also lauded the government’s focus on encouraging post-harvest food processing. He said, “Combining this with significant investment in road and rail infrastructure will act as a multiplier effect for companies in the food processing sector.”

However, concerns were raised by Firoz H Naqvi, Founder & Director at Federation of Sweets & Namkeen Manufacturers (FSNM), regarding the absence of specific measures for the food processing sector. According to a report by IMARC Group, the Indian sweets market is experiencing rapid growth and is projected to reach INR 25,970.8 Crore by 2032, with a Compound Annual Growth Rate (CAGR) of 16.67% from 2024 to 2032.

Amidst this swift expansion, the sweets and namkeen industry had high hopes for clarity on the Goods and Services Tax (GST) issue and relief through the reduction of regulations.

“The Indian sweets and namkeen industry, in particular, has been eagerly awaiting clarity on GST issues, which unfortunately remain unaddressed. It is crucial for the industry to receive the necessary attention and consideration, including a reduction in regulations and the creation of a conducive business environment,” Naqvi stated.

Finance Minister Nirmala Sitharaman, while presenting the budget, also highlighted the government’s distribution of 30 Cr loans to women entrepreneurs under the Pradhan Mantri MUDRA Yojana (PMMY) in the last 10 years. Nearly 70% of these loans were extended to women entrepreneurs.

“The empowerment of women through entrepreneurship, ease of living, and dignity for them has gained momentum in these ten years,” Sitharaman said in her speech.

Nidhi Singh, Co-Founder of Samosa Singh, commended the budget’s commitment to fostering economic growth, supporting initiatives like PM Mudra Yojana. Singh stated, “The 2024-2025 budget reflects a commitment to fostering economic growth by supporting initiatives like PM Mudra Yojana, emphasizing the importance of empowering women and MSME. A step towards inclusive prosperity and sustainable development.”

Continue Exploring: Interim budget 2024 falls short on immediate rural consumption revival, companies pin hopes on long-term impact through rural housing and post-harvest initiatives

Mondelez International reports strong Q4 sales surge, but volume decline spurs a 2% share drop

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February 2, 2024

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Mondelez International reported an increase in sales for the fourth quarter; however, the impact of price hikes negatively affected volumes. The rise in prices led to reduced demand for Cadbury‘s chocolates and salty crackers, causing a decline of over 2% in the company’s shares after the market closed.

Although the Toblerone parent company experienced an improvement in its profit margin due to price increases throughout fiscal 2023, it is currently witnessing a decline in demand as financially constrained consumers reduce their spending.

In the North America segment, Mondelez observed a 5.5 percentage points (pp) decrease in volume during the fourth quarter, attributed to lower biscuit sales and inventory control. This is a shift from the 4.6 pp increase seen in the preceding quarter. Meanwhile, product prices in the region experienced a 7.4 pp rise.

The manufacturer of Ritz crackers mentioned that it anticipates customer disruption in Europe during the first quarter, potentially extending into the second quarter, due to persistent high inflation.

Continue Exploring: Archies and Mondelez India join forces to sweeten Valentine’s season with exclusive collaboration

The company disclosed a general volume decrease of 0.4 percentage points in the quarter, aligning with other consumer staples companies like McCormick, all grappling with the impact of substantial price hikes.

“While other CPG brands that leaned on price hikes to drive growth had seen volumes decline in Q3, Mondelez managed to grow its volumes. But now Mondelez’s price hikes are catching up to it,” said Insider Intelligence analyst Zak Stambor.

The gross profit margin, standing at 37.3%, surpassed market expectations of 36.7%, although it was slightly lower than the 38.7% recorded in the previous quarter.

In the quarter ending on December 31, net revenue increased by 7.1% to approximately $9.31 billion, in line with the average estimate of analysts, as per LSEG data. This compares to $8.70 billion reported a year ago.

Mondelez, along with Starbucks, highlighted the negative impact on its business resulting from the Israel-Hamas conflict.

“There is some tensions in the Middle East, and that has some effect on Western brands, and we have some of those Western brands,” Mondelez executives said in a post-earnings call.

For 2024, the company anticipates organic net revenue growth ranging from 3% to 5% and foresees a high single-digit rise in adjusted profit per share on a constant currency basis.

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