Mondelez India Cuts Ad Budget as Profits Collapse in FY25
Mondelez India Foods Ltd., the maker of Cadbury Dairy Milk, Oreo, 5 Star and other confectionery brands, reported a sharp plunge in profitability in fiscal year 2025, prompting a reduction in advertising and promotional expenditure amidst rising costs and margin pressure.
According to company filings, Mondelez India’s net profit collapsed by over 99% to approximately ₹10–12.5 crore in FY25, down from more than ₹2,020 crore in FY24, as total expenses rose sharply while revenue declined. Sales from operations slipped about 1.9% to around ₹12,500 crore, while raw material and operating costs — including higher cocoa and dairy inputs — significantly eroded margins. Operating margin dropped to around 8% from nearly 19.4% previously, and net profit margin shrank to a fraction of its earlier level.
In response to these financial pressures, Mondelez trimmed its advertising and promotional spending by roughly 5% year-on-year, lowering it to around ₹1,520–₹1,580 crore in FY25 from about ₹1,603 crore in FY24. The reduction reflects an effort to manage rising costs and preserve cash flows amid a challenging cost environment. While Mondelez India’s core business centres on confectionery and biscuits, cost inflation in dairy ingredients — which feed into products like Cadbury Dairy Milk — has been cited by analysts as a contributor to the company’s margin squeeze, alongside higher employee expenses and increased finance costs. This situates dairy input costs as a notable factor even in broader FMCG profitability trends.
The sharp drop in profit and the accompanying moderation in ad spend underscore the dual challenges facing consumer goods companies in India amid cost inflation and slowing sales growth, and highlight how commodity price dynamics — including dairy component costs — can ripple through large food manufacturers’ financials.
Source : Dairynews7x7 Jan 16th 2026
