Exceeding financial analysts expectations, Mondelez International reports its Q1 results which show a solid start to the year bolstered by strong sales of its so-called “power brands” like Oreo, Cadbury Dairy Milk, Ritz and Chips Ahoy! as well as Milka and Lacta chocolate.

Net sales from these rose 1.6% in the quarter, while the confectionery giant says its first quarter revenue came in at US$6.4 billion which was above previous estimates, but represents a 0.6% decrease on net revenue in the same period a year before.

Q1 net earning were US$630 million, up 13.7% and resulting in 41 cents of earnings per share.

"We had a solid start to the year despite challenging market conditions," says Irene Rosenfeld, Chairman and CEO. "We delivered both top-line organic growth and strong margin expansion in the quarter, while also making critical investments for our future. We remain confident in and committed to our balanced strategy for both top- and bottom-line growth, continuing to focus on what we can control to deliver long-term value creation for our shareholders."

Organic net revenue increased 0.6%, with growth in all regions except North America.

Gross profit margin was 39.4%, an increase of 10 basis points driven primarily by lower Restructuring Program implementation costs. Adjusted Gross Profit margin was 40.3%, a decrease of 20 basis points, driven by unfavorable mix impacts and higher input costs, partially offset by strong net productivity and improved pricing.

Operating income margin was 13.1%, up 190 basis points, reflecting the Adjusted Operating Income gains and the benefit from the settlement of a Cadbury tax matter. Adjusted Operating Income margin increased 90 basis points to 16.8% due primarily to continued reductions in overhead costs and supply chain productivity savings.

The company says it continues to expect Organic Net Revenue to increase at least 1% in 2017 and Adjusted Operating Income margin in the mid-16 percent range. The company also expects double-digit Adjusted EPS growth on a constant-currency basis and estimates currency translation would reduce net revenue growth by approximately 1% and Adjusted EPS by approximately $0.02. In addition, the company expects Free Cash Flow of approximately US$2 billion.