Financial Disaster Strikes Protein Bar Company, Eliminating All Profits
In the world of confectionery, the year 2024 saw a fascinating mix of fortunes for two iconic brands under the umbrella of Mondelez International - Cadbury and Grenade.
Starting with Cadbury, the British chocolate giant, the year began on a positive note as its turnover soared from £155.8m to an impressive £206.5m. This growth was particularly evident in Europe, where sales surged from £1.1m to £4.6m, according to recent reports. However, this positive trend was somewhat overshadowed by a dip in sales in the rest of the world, with the turnover slashed from £8.7m to £4.3m. As a result, pre-tax profit increased from £42.3m to £52.4m, a significant leap.
Despite this success, Cadbury faced a setback when it was dropped from the list of royal warrants for the first time in 170 years at the end of 2024, a decision announced by Buckingham Palace's Royal Warrant Holders Association. The company's owner expressed disappointment at this development.
Moving on to Grenade, a protein bars brand founded by a husband and wife team, the story was somewhat different. In 2021, Mondelez International acquired the brand, and since then, the company has made significant investments to promote the brand and its products for future growth. However, these investments seemed to have taken a toll on the brand's financial performance.
In 2024, Grenade reported a pre-tax loss of £237,763, a significant change from a profit of £12.1m in the prior 12 months. This decline was reflected in the brand's turnover, which dropped from £93.2m to £80.5m over the same period. The UK market, in particular, saw a decline in sales, with a drop from £83.3m to £71.5m.
Despite the dip in profits, Mondelez International reported a turnover of £2.4bn for 2024 in the UK, a rise from £2.2bn. While sales in the UK remained flat at £64m, turnover in Europe more than doubled from £49.3m to £103.6m, indicating a promising future for the company.
In the midst of these financial fluctuations, Mondelez International, the owner of both Cadbury and Grenade, faced a decline in pre-tax profit from £88.1m to £61m over the same period. This dip in profit, however, might be attributed to the substantial investments made to boost the brands' growth and market presence.
As we look forward, it is clear that both Cadbury and Grenade, under the Mondelez International banner, will continue to navigate the dynamic world of confectionery, striving for growth and success.
