Food & Beverage

Mondelez says cyber attack will cut into revenue growth

Key Points
  • Mondelez said it was the victim of a cyber attack on June 27.
  • The security breach prevented the company from shipping and invoicing.
  • Shares of the company fell nearly 2 percent after hours following the announcement.
Modelez: Recent cyber attack to cut Q2 revenue growth
Modelez: Recent cyber attack to cut Q2 revenue growth

Mondelez said Thursday that a recent cyber attack will cut into its revenue growth for its second quarter.

The company said its preliminary estimate of the impact indicates a 3 percent slice off its revenue growth rate for the quarter. Mondelez's stock declined nearly 2 percent in after-hours trading following the announcement.

The company said it was hit on June 27, compromising its ability to ship and invoice during the last four days of its second quarter. Mondelez was one of multiple companies around the globe that reported being attacked that day.

"There are a few markets where we have permanently lost some of that revenue due to holiday feature timing, but we expect we will be able to recognize the majority of these delayed shipments in our third quarter results," the company said in a press release.

Mondelez said it is making "good progress" in restoring its systems, and that a "critical majority" of systems affected by the attack are up and running again. The company also said it believes the issue has been contained.

The food company said it is still assessing the full financial effect of the event. It warned of "incremental one-time costs" related to the attack in its second and third quarters, but it maintains its full-year organic revenue growth outlook of "at least one percent growth."

Mondelez said it will give another update on the issue when it holds its second quarter earnings call in August.