GST, Cyberattacks Weigh on Mondelez’s Top Line
Global revenue took 260 bps hit in Q2, says co; expects better H2 show
Mumbai: Snack giant Mondelez International said a combination of cyberattacks and goods and services tax (GST) in India impacted global revenues by 260 basis points.
“Our second quarter results were largely in line with our expectations, absent the malware incident and the transition impact of the India GST, which were a combined headwind of 260 basis points to our top line growth,” Brian Gladden, CFO at Mondele z, said at an investors call on Wednesday.
“Excluding these items, our organic net revenue growth would have been essentially flat. The impact of these incidents masked solid results in a number of areas.”
Mondelez, the world’s se-
cond-largest confectionery company, witnessed shipping and invoicing delays caused by a cyberattack during the last week of June, and much around the same time, the Indian market was preparing for a new tax regime that prompted traders and retailers to halt their purchase from consumer goods companies. The maker of Cadbury and Oreo said India business could have grown in double digits, but due to the impact of GST grew mid-single digit. “Chocolate continued to be strong as we executed our plans, and the overall market conditions remained good,” said Gladden.
The company said it expects to recover in the second half, and also explained that the base quarters have seen issues such as demonetisation.
The Indian market contributes about 4% to Mondelez’s global sales, but the country is increasingly becoming important for sales and production