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Mondelez profits following size cuts in Freddo frogs

Mondelez Australia’s profit for the year to December was up 43 per cent, assisted by cost cutting and a $30 million tax credit.

News Corp reports that the company – which makes products including under the Cadbury, Vegemite and Kraft brands – saw its revenue slip 3 per cent to $1.74 billion, losing market share to supermarket private labels.

The local part of Mondelez International saw savings through reducing its R&D spend by 60 per cent, reducing its workforce by 186 jobs, and cutting the size of its popular Freddo Frog and family-sized chocolate block products.

It also booked a $30 million tax credit. Net profit after tax was $168.1 million for the year to December.

"While we're pleased to have made some modest progress, we continue to operate in an environment that's tough for Australian manufacturers," Fairfax reports the local Mondelez managing director Amanda Banfield as saying.

"We're making good inroads by taking action to ensure the business remains sustainable and competitive (and) we've regained ground by focusing on cost reduction and efficiency increases, which we are using to invest in our well -loved brands."

 

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