**Title:** Parle and Mondelez Report Significant Profit Declines Amid Rising Costs
**Meta Description:** Parle Biscuits and Mondelez India face steep profit drops due to rising material costs, with Parle’s profits down 29% and Mondelez’s over 99%.
**URL Slug:** parle-mondelez-profit-decline-2025
**Headline:** Parle Biscuits and Mondelez India Experience Major Profit Declines Due to Rising Material Costs
In the fiscal year ending March 31, 2025, Parle Biscuits Pvt. Ltd and Mondelez India Foods Pvt. Ltd reported substantial declines in net profits, primarily attributed to escalating material costs within the industry. Financial data from Tofler reveals that Parle Biscuits, a prominent player in the biscuit market, saw its net profit plummet by 29% year-on-year, dropping from ₹1,607 crore to ₹979.5 crore.
Despite an 8.5% increase in sales, which reached ₹15,568.5 crore compared to ₹14,349.4 crore the previous year, rising production costs significantly impacted Parle’s profitability. The company’s expenses surged nearly 15%, totaling ₹14,881.3 crore for the fiscal year, leading to a decline in operating margins from 10.6% to 5.3%. Net profit margins also fell to 6% from 10.7% in the prior year. Parle’s brand portfolio includes well-known names such as Parle-G, Hide & Seek, Monaco, and Melody.
In contrast, Mondelez India, formerly known as Cadbury India, reported an alarming drop of over 99% in net profits, which fell to ₹10.5 crore from ₹2,081.9 crore the previous year. This drastic decline was largely due to a significant reduction in other income, which decreased to ₹98.7 crore from ₹1,097.5 crore. The company’s sales also dipped by 1.91%, totaling ₹12,503 crore compared to ₹12,747 crore in the previous fiscal year. Consequently, Mondelez’s profit margins fell to a mere 0.1% from 15%, while operating margins decreased to 8% from 19.4%. The company’s expenses rose to ₹12,549.1 crore, up from ₹11,082.4 crore the previous year. Mondelez’s brand offerings include Cadbury chocolates, 5 Star, Tang, Bournvita, and Oreo.
Both Parle and Mondelez face stiff competition from Britannia Industries, the market leader with a nearly 38% share of India’s biscuit market, while Parle holds the second position at 32%. In contrast, Britannia reported a modest 2% increase in consolidated net profits, reaching ₹2,177.86 crore for FY25.
As these companies navigate rising costs and declining profits, the competitive landscape in the biscuit and confectionery market remains challenging, with implications for future growth and market strategies.
**FAQ:**
**Q: What factors contributed to the profit declines of Parle and Mondelez?**
A: The significant profit declines for both companies were primarily due to rising material costs and increased expenses, which outpaced sales growth.