Mondelez Investor Says Company Needs To Slim Down Even Further

Though snack maker Mondelez has been working hard to cut costs, boost profits and bolster its stock price, more needs to be done, according to one big investor. The company’s profit margin in 2014 was only 12 percent, while the average profit margin in the food industry is closer to 16 percent. Analysts blame pricing missteps since it split from former parent Kraft, as well as inventory buildups and stiffer competition in emerging markets. Activist investor William Ackman, whose company has built a $5.5 billion, 7.5 percent stake in Mondelez, sees more room for fat trimming and is not afraid to voice his opinions. Analysts say expenses could be further cut by reshaping distribution and possibly divesting some business lines that divert resources from the core business: snacks.