Boston, MA 04/10/2014 (wallstreetpr) – Mondelez International Inc (NASDAQ:MDLZ) is a $60 billion organization which manufactures and markets snacks worldwide. The company operate in more than 165 countries globally.
Mondelez plans to invest more in Russia despite the geopolitical tension in the region. The U.S. snacks company will spend $110 million in a new manufacturing factory, in Russia, citing increasing prospects for its business in the market.
The facility to be constructed in Novosibirsk will have an annual capacity of snack production of approximately 50,000 tons. The new manufacturing plant will create about 180 jobs and will be the company’s most advanced factory in Russia.
Economic sanctions
Mondelez International Inc (NASDAQ:MDLZ) can be seen pushing ahead with its investment activities in Russia despite the possibility of greater economic sanction against the country. Following Russian’s military intervention in Ukraine which ended with annexation of Crimea, there is currently a lot of political tension in region. The tension creates challenges for U.S. companies operating in the region. However, it seems Mondelez is unperturbed, instead pressing on with the pursuit of growth and profitability where opportunities seem to exist.
Increasing cash flow
In expanding its manufacturing portfolio, Mondelez International Inc (NASDAQ:MDLZ) has a target. The company aims to achieve higher cash flow in the next three years. The company is also striving to save more money in net productivity. As such, the company wants to add $1 billion more to its current cash flow position by the next three years and achieve net productivity saving of $1.5 billion.
Eye on emerging markets
Mondelez International Inc (NASDAQ:MDLZ) has increasing interest in emerging markets where it believes demand for its products will be high. The company plans to boost its investment in emerging market to take advantage of the anticipated benefits. Moreover, the company is aggressively cutting costs to ensure that revenue growth leads to a positive impact on the bottom line.
The company disclosed that its CEO Irene Rosenfeld took a buy cut in 2013. The CEO earned total compensation of $14 million, reflecting 51 percent fall from the $28.8 she took home in 2012.
