Oreo, Dairy Milk-maker Mondelez India slashes ad budget to Rs 1,580 crore in FY25; profit falls 99%

Mondelez India reported a sharp collapse in profitability in fiscal year 2025 as surging raw material and operating costs severely eroded margins, even as revenue and sales declined during the year.

The FMCG company’s margins saw a dramatic contraction, with net profit margins plunging to 0.1% from 15% a year ago. Operating margins also dropped sharply to 8% in FY25, compared with 19.4% in the previous fiscal year, underscoring the impact of sustained cost inflation on the company’s financial performance.

The maker of Cadbury chocolates and Oreo biscuits posted a more than 99% drop in net profit to Rs 10.5 crore in FY25, compared with Rs 2,081.9 crore in the previous fiscal year, according to financial statements accessed by Tofler. Revenue declined 9% year-on-year to Rs 12,602 crore during the period.

Sales fell 1.9% to Rs 12,503 crore in FY25 from Rs 12,747 crore in FY24, while total expenses rose sharply to Rs 12,549.1 crore, up from Rs 11,082.4 crore a year earlier, highlighting significant cost pressures across the business.

According to an Economic Times report, Mondelez India’s profitability was hit by a steep rise in raw material costs, particularly cocoa and dairy products. Higher employee expenses, a sharp increase in depreciation, and rising interest costs—reflecting higher borrowings amid tighter financial conditions—further weighed on earnings.

Advertising and promotional expenses declined marginally during the year, falling to Rs 1,580.81 crore in FY25 from Rs 1,603.15 crore in FY24.