Economy

Mondelez reports double-digit Q2 growth in India, despite Covid second wave

Meenakshi Verma Ambwani New Delhi | Updated on July 28, 2021

Company, however, says short-term risk of further disruptions remains significant

Mondelez International has said that its Indian unit witnessed strong double-digit growth in the second quarter despite the disruptive impact of the pandemic’s second wave. The company, known for brands such as Cadbury and Oreo, said it also expanded its distribution in the country during this period. However, the packaged food major added that the short-term risk of further disruptions remains significant in countries like India.

It said that its emerging market performance was strong, growing more than 16 per cent for the quarter despite Covid-related lockdowns at the start of it.

Driven by double-digit growth rate, Mondelez India focussing on biz continuity

“In India, the situation improved in June and growth trends have already been restored in line with what we saw in quarter one… India delivered another quarter of exceptional growth, despite a challenging start related to lockdowns, growing strong double-digits. India grew on a two-year average mid-single-digit.,” the company’s management stated on an analyst call on Tuesday.

Dirk Van de Put, Chairman and Chief Executive Officer, Mondelez International said, “If I look at India, they bounced back in June of the crisis of April and May, and the daily cases are now at 10 per cent of what the peak was. So, the short-term risk of further disruption remains significant due to the slow vaccine rollout and new variants. But if I look at the long-term prospects, I believe they still are very strong. And our team there is executing the strategy very well, doing more investment, increasing the range and driving more distribution.”

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He added that the company has been expanding its presence in emerging markets and continues to gain distribution in countries like China and India, “with another 60,000 and 20,000 stores added this quarter”.

The company stated that, globally, recovery has been uneven across markets, largely dependent on the availability and adoption of vaccines, and it is still some distance away from reaching a new normal.

Published on July 28, 2021

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