Chocolate maker Mondelez hides earnings of its Russian business as sales soar in the country despite pledge to reduce operations
American company Mondelez International, a producer of chocolate and cookies including Oreo, Milka, Toblerone, Barny, and Tuc, has decided not to disclose the financial statements of its Russian business for 2023. The decision not to disclose data (a move also adopted by Nestle and Mars) demonstrates an attempt by consumer goods giants to avoid further reputational damage associated with their refusal to exit the market of the aggressor country.
Despite promises to reduce operations in Russia and multiple attempts to engage the company’s leadership, Mondelez continues to expand its business.
For example, the company sold 9,800 tons of Milka chocolate in Russia in just the first quarter of 2024 — six times more than projected for the same period.
The company’s Russian subsidiary and its employees also remain entangled with the rest of Mondelez. A Reuters source, familiar with the matter but not authorized to speak to the media, reported that the Russian subsidiary of Mondelez still uses the company’s enterprise resource planning (ERP) system. The source also noted that Russian employees working for the Russian business continue to attend work meetings with employees from other regions.
