Mondelez revenue jumps on chocolate growth, Kraft Heinz raises prices

Yahoo Finance Live anchors discuss quarterly earnings for Mondelez and Kraft Heinz.

Video transcript

BRAD SMITH: We're also keeping a close eye on shares of other earnings related companies that have come out this morning, consumer packaged goods. Mondelez reporting a rise in revenue from chocolate growth, while Kraft Heinz sticking with its price hikes as it sees demand drop here.

BRIAN SOZZI: On a Federal Reserve announcement day, very important. Let's lock in on what both these companies are saying in terms of price in North America. That's our market, that's where we live, that's what we're focusing on right now.

So Mondelez came out and said they raised prices by 10.2% in North America in the second quarter. Volume down 1%. So another way to look at that is consumers are balking at some of these price increases. That is a similar message than what we heard from Kraft Heinz this morning, noting that in the North America market, they raised prices 13.1% and their volumes declined 3.3%.

So overall, I would say a still very inflationary environment impacting both of these companies. Kraft Heinz warning high levels of inflation are continuing in dairy, packaging, and transportation, and that's why they're taking a little bit more cautious tone in their outlook. They're seeing shares get hammered there in the early going.

BRAD SMITH: I know we're focusing on the US, but for Mondelez, some of the growth that we had seen internationally, especially in Latin America, up 31% versus the prior year. Massive growth there and in the emerging markets, that's really running away versus the developed markets. Their emerging markets growth, perhaps something to keep a close eye on as we've seen that to move higher by about 22.4% over this most recent quarter versus the prior year. And so perhaps that's exactly where they see some of that expansion opportunity, especially in the snack category right now.