MONDELEZ INTERNATIONAL INC  (NASDAQ:MDLZ) stock rose 1.70% (As on November 2, 11:47:57 AM UTC-4, Source: Google Finance) after the company hiked its annual sales and profit growth forecasts for the third time this year, betting on consumers to continue snacking on the Oreo maker’s chocolates and baked snacks despite price increases. With a majority of its sales coming from a more recession-resilient core categories of chocolate, biscuit and baked snacks, consumers have lapped up several rounds of product price hikes by Mondelez, prompting it to raise this year’s forecasts twice already. The Toblerone maker’s results resonate packaged food peer Kraft Heinz, which earlier in the day hiked its annual profit forecast on a boost to its margins from price increases. Year-to-date cash provided by operating activities was $3.2 billion; Free Cash Flow¹ was $2.4 billion, up +$0.5 billion vs prior year. The company closed the divestiture of our developed market gum business for $1.4 billion.

MDLZ in the third quarter of FY 23 has reported the adjusted earnings per share of 82 cents, beating the analysts’ estimates for the adjusted earnings per share of 78 cents. The company had reported the adjusted revenue growth of 16.3 percent to $9.03 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $8.83 billion, according to LSEG data. Adjusted Gross Profit increased $648 million at constant currency, and Adjusted Gross Profit margin increased 120 basis points to 38.6 percent due to pricing, lower manufacturing costs driven by productivity and favorable product mix, partially offset by higher raw material and transportation costs. Adjusted Operating Income increased $307 million at constant currency while Adjusted Operating Income margin increased 60 basis points to 16.7 percent, driven primarily by higher net pricing, lower manufacturing cost driven by productivity, SG&A leverage and favorable product mix, partially offset by input cost inflation.

Mondelez’s organic net revenue for the full year is expected to grow 14% to 15% compared with a prior expectation of a more than 12% growth. It also raised its adjusted profit forecast, and expects it to grow 16% on a constant currency basis from an earlier view of a 12% rise. Analysts polled by Capital IQ expect normalized EPS of $3.23 and revenue of $35.86 billion. The company’s Free Cash Flow outlook remains at $3.3+ billion. The company estimates currency translation would decrease 2023 net revenue growth by approximately 4 percent with a negative $0.15 impact to Adjusted EPS.