Mondelēz sales hit by cyberattack but outlook unchanged

09-Jul-2017 - Last updated on 10-Jul-2017 at 15:53 GMT

Mondelēz expects ransomeware attack last month will bring down Q2 revenues by -0.3% ©iStock/scyther5

Mondelēz International says a cyberattack on its systems has been contained, but may harm revenues in its second quarter.

However, it has reaffirmed its full-year organic revenue growth outlook of “at least 1% growth" and still expects profit margins to be mid-16% for the full-year.

The company’s IT systems were outed by a global cyber attack on June 27, 2017.

The ransomware attack blocked access to computers and demanded a $300 payment in bitcoins to restore service.

Large companies such as Mars’ petcare business, Nivea and Maersk were also affected.

Sales disruption

Mondelēz said in a release the event may negatively impact second quarter growth by -0.3%.

“Given the timing of this significant global attack, despite our best efforts, we experienced disruption in our ability to ship and invoice during the last four days of our second quarter.

“There are a few markets where we have permanently lost some of that revenue due to holiday feature timing, but we expect we will be able to recognize the majority of these delayed shipments in our third quarter results,” it said.

The company sought outside IT assistance and says it has made “good progress” in restoring its systems across the business.

“We believe the issue has been contained and a critical majority of the affected systems are up and running again,” it said.

A Mondelēz Europe spokesperson told us all sites in Europe have been back up and running for some time.

Mondelēz will report its second quarter results next month. Group net revenues were down -0.6% in the first quarter to $6.4bn, which the company said represented +0.6% organic growth.

Cadbury Dairy Milk Tiffin

cadbury tiffin — Cadbury Dairy Milk Tiffin back after 14-year hiatus. Photo: MDLZ

The company said last week it had added Cadbury Dairy Milk Oreo and Cadbury Dairy Milk Tiffin production lines at its UK plant in Bournville following a £75m ($97m) investment.

Cadbury Dairy Milk Tiffin was launched in 1937, but was withdrawn from sale in 1972, brought back in 1985 and withdrawn again in 2003. It will enter UK stores again in Fall/Autumn this year.

Cadbury Dairy Milk Oreo will launch at the same time in the UK in a larger 120 g tablet for a recommended retail price of £1.49 ($1.92).

In other Mondelēz news, trade association FoodDrinkEurope last week elected Hubert Weber, executive vice president and president Europe for Mondelēz International, as its president.

He takes over from Gilles Morel, regional president Europe & Eurasia for Mars, who held the position since June 2015.