Summary
Mondelez International, Inc. (MDLZ), previously Kraft Foods Inc., reported net revenues of $40.4 billion for the fiscal year ended December 31, 2009, a decrease of 3.7% compared to the prior year. Despite the revenue dip, the company demonstrated improved profitability, with diluted Earnings Per Share (EPS) from continuing operations increasing significantly by 67.8% to $2.03. This improvement was driven by operational efficiencies, cost savings initiatives, and favorable pricing, which helped offset some of the negative impact from unfavorable volume/mix and foreign currency fluctuations. The company highlighted a strategic focus on transforming into a leading snack, confectionery, and quick meals company, with key priorities including investing in growth categories, expanding in developing markets, increasing presence in instant consumption channels, and enhancing margins. A major development during the period was the pending acquisition of Cadbury plc, announced in January 2010, which was expected to create a global powerhouse in snacks and confectionery. Concurrently, Mondelez was in the process of divesting its North American frozen pizza business to Nestlé for $3.7 billion, signaling a strategic portfolio reshaping. The company maintained a strong liquidity position, supported by its credit facilities and cash from operations.
Financial Highlights
55 data points| Revenue | $38.75B |
| Cost of Revenue | $24.82B |
| Gross Profit | $13.94B |
| R&D Expenses | $466.00M |
| SG&A Expenses | $8.78B |
| Operating Income | $5.18B |
| Interest Expense | $1.26B |
| Net Income | $3.02B |
| EPS (Basic) | $2.04 |
| EPS (Diluted) | $2.03 |
| Shares Outstanding (Basic) | 1.48B |
| Shares Outstanding (Diluted) | 1.49B |
Key Highlights
- 1Net revenues for the fiscal year ended December 31, 2009, were $40.4 billion, a decrease of 3.7% from the previous year.
- 2Diluted EPS from continuing operations saw a substantial increase of 67.8% to $2.03, indicating improved profitability.
- 3The company announced its intention to acquire Cadbury plc in January 2010 for approximately $19.4 billion, aiming to create a global leader in snacks and confectionery.
- 4Mondelez entered into an agreement to sell its North American frozen pizza business to Nestlé for $3.7 billion, expected to close in Q1 2010.
- 5The company's strategy focuses on growth categories, developing markets, instant consumption channels, and margin enhancement.
- 6Net cash provided by operating activities was $5.1 billion, demonstrating strong cash generation.
- 7The company maintained a $4.5 billion revolving credit facility, ensuring adequate liquidity for its operations.