Rising costs eat into FY25 profit of Mondelez & Parle

New Delhi: Two of India's top packaged food companies in their segments, Parle Biscuits and Mondelez India, reported a sharp drop in net profit in financial year 2024-25 despite resilient consumer demand, as increased raw material costs weighed on margins.

Mondelez India, the maker of Cadbury chocolates and Oreo biscuits, posted a 9% decline in revenue to ₹12,602 crore for FY25, while net profit fell to ₹11 crore from ₹2,021 crore the previous fiscal year, according to financial data accessed through business intelligence platform Tofler.

Sales dropped 1.9% to ₹12,503 crore from ₹12,747 crore in FY24, while expenses rose to ₹12,549 crore from ₹11,082.4 crore.


A surge in the cost of raw materials, particularly cocoa and dairy inputs, combined with higher employee expenses and a sharp rise in depreciation weighed heavily on the profitability for Mondelez India. Interest cost jumped multiple times from the previous year, reflecting higher borrowings and tighter financial conditions for Mondelez India.

Even though Parle Biscuits reported a 7% increase in revenue to ₹16,191 crore, its net profit dropped 39% to ₹980 crore from FY24. Sales rose to ₹15,568.5 crore from ₹14,349.4 in FY24.

Parle saw its profit margin hurt by rising cost on inputs such as wheat, sugar and edible oil. Higher packaging, fuel and logistics expenses also added to the pressure.

Unlike premium food companies, Parle operates in an extremely price-sensitive segment, limiting its ability to pass on cost increases to consumers without risking volumes. As a result, higher sales did not translate into stronger profits.