Mondelez International Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw strong growth in emerging markets and stable performance in developed regions, with robust innovation and successful product launches. EPS guidance was reaffirmed amid ongoing geopolitical and cost headwinds, with any upside earmarked for reinvestment to sustain momentum.
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Focused on core snacking categories, the company is driving growth through innovation, premiumization, and expanded distribution in both developed and emerging markets. Strategic supply chain investments and targeted M&A support robust financial targets and long-term value creation.
Fiscal Year 2025
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Emerging markets show strong momentum, while developed markets improve but remain challenged. Flat chocolate pricing and a $500M inventory adjustment are expected in 2026, with profitability set to improve in 2027 as cocoa costs normalize.
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European and U.S. markets faced volume and pricing pressures, but recent adjustments and channel expansion are improving trends. Emerging markets remain resilient outside Argentina and China. High single-digit EPS growth is targeted for 2026, with increased investment and supply chain automation planned.
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Long-term strategy remains intact, with tactical adjustments for 2025–2026 amid cocoa volatility and shifting consumer behavior. Growth is expected from emerging markets, innovation partnerships, and targeted expansion in cakes and pastries, while disciplined M&A and share buybacks continue.
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Q2 saw strong global results with pricing actions offsetting volume softness, especially in chocolate. North America remains weak, but emerging markets and Europe delivered robust growth. Guidance is maintained, with prudent assumptions for inflation, cocoa costs, and retailer destocking.
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Consumer confidence varies globally, with the U.S. and Mexico facing headwinds while Europe and Brazil show resilience. Strategic focus on geographic spread, distribution, and pricing supports market share gains. Chocolate pricing is holding, M&A appetite remains, and a local-first culture drives execution.
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Q1 saw 3.1% organic revenue growth, strong pricing in chocolate, and $800M free cash flow, but volume mix declined 3.5% due to elasticity and one-time factors. Outlook for 2025 remains positive, with continued investment in brands and innovation despite cocoa cost pressures.
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Strong growth in core snacking categories was achieved despite cocoa inflation, with leading market positions and a robust sustainability agenda. Strategic expansion in cakes and pastries, disciplined capital allocation, and a five-pillar chocolate strategy position the business for continued resilience and long-term value creation.
Fiscal Year 2024
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Delivered strong 2024 results with 4.3% organic revenue growth, 13% adjusted EPS growth, and $3.5B free cash flow. 2025 outlook anticipates ~5% revenue growth but a 10% EPS decline due to record cocoa costs, with EPS growth expected to resume in 2026.
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Q3 saw strong revenue and profit growth, with robust performance in core snacking categories and continued investment in brands. Cocoa cost headwinds will pressure margins in Q4 and 2025, but normalization is expected by 2026.
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Long-term growth strategy remains intact, with tactical adjustments for consumer shifts and cocoa inflation. Volume recovery is underway in key markets, supported by productivity initiatives and global brand activations. 2026 is expected to deliver strong growth as cocoa costs normalize.
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Q2 saw 2.5% organic net revenue growth, 11.3% higher adjusted gross profit, and 25% adjusted EPS growth, with strong Free Cash Flow and a dividend increase. Cocoa cost inflation is a key H2 headwind, but guidance for 2024 remains unchanged.
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Growth acceleration is driven by focused investments in core snacking categories, supply chain improvements, and disciplined M&A. Regional strategies target U.S. recovery, emerging market expansion, and European resilience amid input cost pressures. Distribution and innovation fuel emerging market gains.
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Management highlighted a strategic shift to growth, leveraging global and local brands, and robust M&A discipline. Despite near-term consumer and cost pressures, especially in the U.S. and cocoa markets, the outlook remains positive due to strong category positioning and global expansion opportunities.