Cadbury's owner Mondelez (NASDAQ:MDLZ) has raised its full-year forecasts and rolled out more price hikes as its third-quarter results beat estimates.
The Oreo biscuits maker expects its 2022 organic net revenue to increase by more than 10%, up from a prior estimate for an over 8% jump.
It also forecast 2022 adjusted profit per share would grow by more than 10% on a constant-currency basis, compared with its previous expectation for mid-to-high single-digit growth.
"We see consumers saying that chocolate is really something they cannot live without," Mondelez chief executive Dirk Van de Put said on a post-earnings call, Reuters reported.
Mondelez noted that it is still battling a volatile environment in its European market, which recorded a 2.4% fall in quarterly revenues, as consumers deal with a cost of living crisis.
The Sour Patch candy maker said some high-margin product lines in France and across Europe were impacted by disruptions around pricing from retailers.
But strong demand in emerging markets and North America helped Mondelez post an adjusted profit of 74 cents per share on revenue of $7.76 billion for the third quarter, both exceeding Refinitiv IBES estimates.
Mondelez joins a host of food and drink companies in boosting annual forecasts on the back of higher prices, as shoppers remain willing to indulge in "affordable luxuries" despite decades-high inflation.