Mondelez International Inc (NASDAQ:MDLZ) Up 5% – Could Possibly See Sales Fall

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Dallas, Texas 10/24/2013 (Financialstrend) – Mondelez International Inc (NASDAQ:MDLZ) is an S&P 500 tracked stock with a market capitalization of $59.2 billion. In the past week the stock had seen its stock appreciate close to 5.3% on the browsers. It has paid out dividend of $0.56 per share which translates to a 1.69% dividend yield. Investors who have bought into the stock one year back would have seen their holdings appreciate by 22%.

The company has been struggling to maintain its sales growth over the past couple of quarters. In 2Q it has seen its sales efforts manage to post just a 0.8% increase in value over its previous quarter sales. When the company reports its 3Q operation numbers later this month, investors would be paying close attention to its sales numbers for the quarter. One big concern the company would be trying to address is the Mexican government’s plan to introduce new cess and taxes on food that it labels as junk food and aerated syrupy drinks.

Readers should note that on October 13, the Mexican legislature had passed a tax proposal which would enable the government to enhance an additional 5% tax on high calorie containing manufactured food. This included food items like chips and treated butter. The other impacted food and beverage manufacturers are those which manufacture aerated and carbonated drinks. The law still needs to get approval from the Mexican upper house to be deemed a approved law.

The big push by the government has to be seen in the light of huge medical and social impact diabetes and obesity is having on the populace of Mexico in the past few years. The resultant medical costs and the potential loss of productivity and manpower due to illnesses caused by these live style diseases has promoted the Mexican government to take these measures.

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