Mondelez International reported fourth-quarter earnings of $0.72 per share, surpassing the Zacks Consensus Estimate of $0.70 and improving from $0.65 in the year-ago period. Revenue for the quarter came in at $10.29 billion, topping analysts’ consensus of $10.15 billion and representing a 7.2% increase over the prior year. The outperformance was driven by strong price realization in North America and robust volume growth in emerging markets, particularly Latin America, where sales rose 9%.

Despite the earnings beat, net income declined sharply to $665 million from $1.75 billion a year earlier, reflecting a 62% drop. The contraction was primarily the result of a $900 million year-over-year increase in raw material expenses, with cocoa bean costs rising 18% sequentially. Higher freight and logistics charges added another $120 million to operating expenses. Excluding these headwinds, adjusted operating margin expanded by 40 basis points to 18.5%.

Mondelez forecast full-year revenue growth of mid-to-high single digits and adjusted earnings per share between $2.60 and $2.65, below the $2.72 consensus. Management cited consumer down-trading from premium offerings toward value-priced alternatives in key markets, notably Western Europe, where unit volume declined 3%. The company plans to offset this slowdown through accelerated cost savings, targeting $600 million of synergies by year-end and a 5% reduction in marketing spend to protect margins.

On January 29, Mondelez named Luca Zaramella as chief operating officer and chief financial officer, consolidating operational and financial oversight. Following the earnings release, shares ticked up 0.4% to close at $58.69, reflecting investor confidence in the new leadership’s ability to navigate inflationary pressures. The company reiterated its commitment to returning $3 billion to shareholders through dividends and share repurchases in the coming year.