Broker: DBS
Date of Report: 20 April 2026
Excerpt from DBS report.
Report Summary
- Actionable Call: Favour Mondelez over Delfi in the global chocolate sector.
- Main Idea: Cocoa prices have fallen sharply from 2024 peaks, improving margin outlook for chocolate makers. Earnings benefits from lower cocoa prices are expected to become more meaningful in FY27 as higher-cost inventory is drawn down.
- Key Highlights:
- DBS prefers Mondelez for its diversified global earnings base and stronger pricing power.
- Delfi’s valuation appears stretched (14.4x FY27 earnings, above its historical average of 11.4x) with earnings growth likely constrained by delayed cocoa cost relief and weaker Indonesian consumer confidence.
- Mondelez has a more attractive profile with a FY27F PE of 17.1x and significantly larger market cap.
- Implications: Investors are advised to raise exposure to Mondelez and reduce exposure to Delfi given current sector dynamics and valuation considerations.
above is an excerpt from a report by DBS. Clients of DBS can be the first to access the full report from the DBS website : https://www.dbs.com/insightsdirect/
