Results of Oreo Maker Mondelez Beat on Gains from Latin America, Europe

Mondelez International Inc surpassed the profit and revenue estimates of Wall Street in the third quarter as the demand for its key brands such as Trident gum and Oreo cookies grew in Latin America and Europe and the company reduced costs.

On Monday, the shares of the second largest confectionery company in the world grew 4.9% to $41.20 (31.20 pounds) in after-market trading.

The organic revenue of Mondelez, a measure that does not include currency fluctuations, rose 5.4% in Latin America and 3.2% in Europe in the quarter that marks the end of the tenure of Irene Rosenfeld as the company’s chief executive officer.

The company said that its performance in Europe was boosted by strong chocolate sales in the United Kingdom and Germany.

However, sales in North America, which is its second largest market, remains to be a concern for the packaged goods company.

Net revenue from North America grew 1.3%. However, it lingered behind Hershey,  its smaller rival, which reported a 1.6% increase in sales in the region in October.

North America is the sole region that is performing below expectations. However, Rosenfeld said in the earnings call that the company is confident in improving it in the future.

The company said that Dirk Van de Put, McCain Foods CEO, will take over on November 20 from Rosenfeld.

The departure of Rosenfeld comes after years of consistent declines in sales for Mondelez, which was built in 2012 from a spin-off of the North America grocery business of Kraft- a move that Rosenfeld masterminded.

On Monday, the snack giant said that it is recovering from the cyber attack from last quarter that affected shipment volumes and has led to a loss in revenue amounting to $100 million for the entire year.

Total organic net revenue grew 2.8% in the quarter that ended September 30, and the recovery in shipment volumes provided 0.6% to the growth.

Organic net revenue from its principal brands, such as Milka chocolate, Oreo cookies, and  Cadbury Dairy Milk, grew 3.8% in the quarter, compared to a 2.5% increase, a year earlier.

The company, which is planning to cut around $3 billion in cost by the end of next year, reduced its costs by 14.3% to $1.33 billion during the reporting quarter.

In the quarter, net income that is attributable to Mondelez grew 81% to $992 million, or 65 cents per share, helped by one-time gains and taxes.

Excluding items, the company earned 57 cents a share and revenue increased 2.1% to $6.53 billion.

According to Thomson Reuters, analysts had anticipated the company to report a profit of 54 cents per share on revenue of $6.45 billion, on average.