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CLAIM #39536 · Mondelez International Inc (MDLZ) · 2022Q3 earnings call · Nov 1, 2022 · due Dec 31, 2023

Going forward, particularly since we're seeing an acceleration in our top line, particularly since we're seeing our volume working for us, I would say we don't really anticipate that we're going to change that formula.

Dirk Van De Put · CEO

PENDING
graded after results covering Dec 31, 2023 are reported

In context

as you may have some needs, especially with some of the recent acquisitions? Or is there operational leverage that could come out of that? That's it. Dirk Van de Put : Yes. Well, I would say that in the current environment where we have to increase our prices quite substantially, it is important for us to keep on increasing our A&C spending because we need to make sure that the consumer has trust in our brands and really want to consume them. And we can clearly see the effects of this year after year increasing in our spending. We can now see -- although overall, there's not that much movement into private label, in the market where there is a little bit of movement in private label, it's not so much coming from our brand. And I think that is a reflection from the spending that we've had. Going forward, particularly since we're seeing an acceleration in our top line, particularly since we're seeing our volume working for us, I would say we don't really anticipate that we're going to change that formula. You know the way we think about this. We grow our gross profit at an X percentage. But this quarter is quite strong, I would say. And we then want to flow half of that back into investing in the business and half of that in the bottom line. I don't think that will necessarily change. It's working for us and the business is accelerating. As it relates to the acquisitions, obviously, we have foreseen, in some of the acquisitions, a significant investment because we do have cost synergies, which as Luca said, will start to show up next year in our results. But we also have top line synergies. And we feel that some of the brands have quite good potential, but they might need some investments. So we're going to use the same formula as it relates to acquisitions as we are using on the rest of t

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SEC filings for MDLZ · Claim quote is verbatim from the 2022Q3 earnings call.