Oreo maker Mondelez beats quarterly estimates on North America strength

(Reuters) – Oreo maker Mondelez International Inc posted quarterly results above market expectations and raised its quarterly dividend by 11% on Tuesday, driven by strong demand for its snacks and chocolates in North America.

Demand for packaged foods has extended into the current quarter in North America after initial stockpiling in March, as consumers largely prefer eating at home to visiting restaurants due to the fears of contracting the novel coronavirus.

The company’s net revenues rose 17.3% in North America to $2.03 billion, cushioning the blow from declines in other markets.

Mondelez’s overall revenue fell to $5.91 billion from $6.06 billion, but came in above market estimates of $5.90 billion, according to IBES data from Refinitiv.

The company increased its quarterly cash dividend to $0.315 per share of Class A common stock.

Excluding certain items, Mondelez earned 63 cents per share in the quarter ended June 30, above analysts’ estimate of 56 cents.

Shares of the Ritz crackers-owner were down about 1% in extended trading.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel)