On Thursday, Mondelez
International Inc, the world’s second largest confectionery company, said a
recent cyber attack will cut into its revenue growth for its second quarter.
The snack maker company said that it is making “good progress” on refurbishing its systems after being hit by a large-scale cyber attack and its preliminary estimate of the impact indicates a 3% (300 basis points) slice off of its revenue growth rate for the quarter. A basis point is equal to one-hundredth of a percentage point.
The company’s stock dropped nearly 2% in the extended session trading following the announcement, while reaffirming full-year organic revenue growth expectations of at least 1%.
It said that it is still assessing the full financial effect of the event.
“Given the timing of this significant global attack, despite our best efforts, we experienced disruption in our ability to ship and invoice during the last four days of our second quarter,” Modelez said.
Last month, it said that employees in different regions were experiencing technical problems.
“There are few markets where we have permanently lost some of that revenue due to holiday feature timing, but we expect we will be able to recognize the majority of these delayed shipments in our third quarter results,” Mondelez said in a press release.
The company was one of multiple companies around the globe whose operations were hit by the attack at the end of June, which spread to more than 60 countries.
“We expect to incur incremental one-time costs in both our second and third quarters as a result of this issue, but our underlying margin progress continues to be in line with our outlook of mid-16 percent for the full year,” it said.
Analysts surveyed by Factset expect second-quarter revenue of $6.17 billion, a 2.1% drop from the year ago period.
Meanwhile, earlier on Thursday, Reckitt Benckiser, one of the world’s largest consumer goods companies, estimated its sales would take a £110 million hit due to last month’s cyber attack.
However, by 7:58 PM GMT-4, Mondelez
International Inc traded 0.14%, or 0.06, to $43.06. It opened in $43,
with a session high of $43.35 and a session low of $42.94. Its market
capitalization was 65.21 billion, with a P/E ratio of 38.65 and a dividend
yield of 1.76%.
Want to get updated on the latest news about the stock market? Subscribe now at Trade12. We will let you know the latest happenings about forex, commodities and economies.