At a time when most food companies are seeing sluggish sales
in Europe due to the difficult macroeconomic environment,
Mondelez International, Inc.
) saw improved revenues in the country in the third quarter.
Organically, European revenues increased 1.9% as volume/mix gains
mainly in chocolates, coffee and biscuits were offset by lower
coffee pricing and weakness in gum.
In order to further strengthen its presence in the country,
Mondelez announced an investment plan in Europe earlier this
week. In keeping with its commitment to invest $240 million in
European biscuit manufacturing since 2011, the food company plans
to build a $100 million biscuit factory at the Opava site in
The new plant, expected to create 200 jobs, will make Oreo
cookies and belVita breakfast biscuits to keep up with the
expected increase in demand.
Other Stocks to Consider
The Zacks Rank #3 (Hold) company, previously known as Kraft
Foods, Inc., spun off its North American grocery business into a
separate independent company,
Kraft Foods Group
), in October last year. Ever since, Mondelez has been under
pressure and has posted disappointing results.
Earlier this month, Mondelez reported dismal third-quarter
2013 results, managing to meet the Zacks Consensus Estimate for
earnings but missing the same for revenues due to weak
performance in China. The company also lowered its organic
revenue guidance for 2013 as the present headwinds are expected
Other better-placed stocks in the same industry include
Omega Protein Corp
Pinnacle Foods Inc.
). While Omega Protein carries a Zacks Rank #1 (Strong Buy),
Pinnacle holds a Zacks Rank #2 (Buy).
KRAFT FOODS GRP (KRFT): Free Stock Analysis
MONDELEZ INTL (MDLZ): Free Stock Analysis
OMEGA PROTEIN (OME): Free Stock Analysis
PINNACLE FOODS (PF): Free Stock Analysis
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