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%.
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Mondelez Says Cyber Attack Will Affect Q2 Revenue Growth
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