Mondelez said the country’s short-term risk of further disruption remains significant due to the slow vaccine rollout and emergence of new variants
Chocolate and snack maker Mondelez International Inc. on Tuesday reported double-digit growth in India in the second quarter of the calendar year, despite the market reporting covid-linked disruptions at the beginning of the quarter.
India’s short-term risk of further disruption remains “significant" because of the slow vaccine roll-out and new variants, the company’s top management told analysts. However, they believe that the India’s long-term prospects are “still very strong".
At its second-quarter earnings conference call for the three months ended 30 June, the maker of Oreo cookies and Cadbury Dairy Milk chocolates said that the situation in India improved in June and growth trends have been restored in line with its performance in the first quarter.
“India delivered another quarter of exceptional growth, despite a challenging start related to lockdowns, growing in strong double digits. India grew on a two-year average mid single digit," said Luca Zaramella, chief financial officer & executive vice-president.
Packaged consumer goods companies in India also benefited from a lower base in the year-ago quarter when lockdowns and supply-side disruptions affected demand, despite India being affected at the beginning of the quarter by covid lockdowns, he added.