01—Abstract
Summary
Summary of the 10-K filed February 25, 2010. Cited figures are marked; the original filing is the authoritative source.
Mondelez International, Inc. (MDLZ), previously Kraft Foods Inc., reported net revenues of $40.4 billiona 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 $2.03b. 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 billionc, signaling a strategic portfolio reshaping. The company maintained a strong liquidity position, supported by its credit facilities and cash from operations.
02—Key points
Key Highlights
- Net revenues for the fiscal year ended December 31, 2009, were $40.4 billion, a decrease of 3.7% from the previous year.
- Diluted EPS from continuing operations saw a substantial increase of 67.8% to $2.03, indicating improved profitability.
- The 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.
- Mondelez entered into an agreement to sell its North American frozen pizza business to Nestlé for $3.7 billion, expected to close in Q1 2010.
- The company's strategy focuses on growth categories, developing markets, instant consumption channels, and margin enhancement.
- Net cash provided by operating activities was $5.1 billion, demonstrating strong cash generation.
- The company maintained a $4.5 billion revolving credit facility, ensuring adequate liquidity for its operations.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Mondelez International, Inc. kept $0.08.
- Revenue$38.75B100.0%
- Cost of revenue−$24.82B64.0%
- Gross profit$13.94B36.0%
- Operating costs−$8.75B22.6%
- Operating income$5.18B13.4%
- Interest, other & tax−$2.16B5.6%
- Net income$3.02B7.8%
Where FY2009 revenue went
$38.75B- Cost of revenue: $24.82B, 64% of revenue
- SG&A: $8.78B, 23% of revenue
- Net income: $3.02B, 7.8% of revenue
- R&D: $466.0M, 1.2% of revenue
- Interest, other & tax: $2.16B, 5.6% of revenue
Kept 7.8% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 25, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $38.75B$40.49B | −4.3% |
| Cost of Revenue | $24.82B$27.16B | −8.6% |
| Gross Profit | $13.94B$13.33B | +4.6% |
| R&D Expenses | $466.00M$487.00M | −4.3% |
| SG&A Expenses | $8.78B$8.61B | +2.0% |
| Operating Income | $5.18B$3.58B | +44.9% |
| Interest Expense | $1.26B$1.27B | −0.9% |
| Net Income | $3.02B$2.88B | +4.8% |
| EPS (Basic) | $2.04$1.92 | +6.3% |
| EPS (Diluted) | $2.03$1.90 | +6.8% |
| Shares Outstanding (Basic) | 1.48B1.50B | −1.8% |
| Shares Outstanding (Diluted) | 1.49B1.51B | −1.9% |
05—Questions
Frequently Asked Questions
What was Mondelez's (Kraft Foods) financial performance in 2009?
In 2009, Mondelez (Kraft Foods) reported net revenues of $40.4 billion, a 3.7% decrease from 2008. However, diluted EPS from continuing operations significantly improved by 67.8% to $2.03, reflecting enhanced profitability due to cost savings and pricing strategies.
What are the key strategic priorities for Mondelez?
Mondelez's long-term strategy is shaped by four priorities: focusing on growth categories (snacks, confectionery, quick meals), expanding its footprint in developing markets, growing its presence in instant consumption channels, and enhancing overall margins through portfolio optimization and cost reduction.
What major corporate actions were underway or completed around the filing date?
The most significant corporate action was the announced acquisition of Cadbury plc in January 2010 for approximately $19.4 billion, which aimed to create a global confectionery and snack powerhouse. Additionally, the company was in the process of divesting its North American frozen pizza business to Nestlé for $3.7 billion, expected to close in the first quarter of 2010.
06—Continue