MDLZ

The brands like Oreo and Belvita cookies, Alpen Gold, Toblerone, Milka and Cadbury chocolate, as well as Barni bear-shaped snacks for kids’ nutrition never disappoint Mondelez manufacturers. Over 200 more unique trademarks inside the Mondelez portfolio do make it rich. Cocoa bean futures were peaking above $12,500 per ton before Christmas, after ranging between $6,000 and $10,000 in summer and fall of 2024, yet this phenomenon of chocolate inflation still impacted costs during the first two months of the current year. Despite these headwinds, Mondelez weathered the challenges and delivered a better-than-expected quarter.

Even though it released a 18.3% decline YoY on a constant currency basis, with sales for the quarter coming a $30 million below the $9.34 billion estimate, it was up 0.2% from the previous year, and the main thing was that the company posted its adjusted EPS (earnings per share) of $0.74, which exceeded the Wall Street analyst poll consensus of $0.66. The so-called organic or net revenue growth was even above 3%, helped by higher pricing to nearly offset a 3.5% decline in physical volume. Mondelez fully reaffirmed its previous 2025 outlook, projecting nominal sales growth or around 5% YoY, after it already returned $2.1 billion to shareholders through cash dividends and share repurchases during the first quarter. The details emerged last night, prompting a nearly 2% rise in Mondelez's share price in extended trading hours.

Both households and lonely people are gonna save on many things nowadays, but most of us are attempting to eat enough chocolate and biscuits, each time we have a cup of tea or coffee. I know I'm a better person when I'm eating chocolate, or when I'm investing into chocolate names again. And I have reason to believe that I will also have material gains from this action. After all, the nearest technical resistance for Mondelez shares is no closer than $75 per share, while the price has only jumped from $65 to $67, and the average analytical estimate of the pool of experts sets target levels of about $71 per share, which is more than 8% more than yesterday's closing price. Moreover, classic methods of technical analysis show that we are just inside a triangular panel of the flag pattern, which is marked in orange on my drawing, and such patterns are more often broken upwards. The pole of the flag (it is on the left side of the chart) pointed to the top of my target area, which is also shown in orange colour on this chart below. The potential profit here certainly cannot be as high as in the artificial intelligence and cloud segments, but... what do you say to the following simple reasoning?

Manufacturers surely make a lot of money on this common passion, even while they also bear growing operating costs, but why shouldn't we make money on this instead of just spending it? At least to get my money back, so as to get a small income, just enough to buy back my favourite chocolates and cookies once again. If so, my balanced diet is chocolate and chocolate-related equities in both hands today.