Summary
Mondelez International, Inc. (formerly Kraft Foods Inc.) reported strong top-line growth in 2010, driven significantly by the acquisition of Cadbury. Net revenues increased by a substantial 27.0% to $49.2 billion. The company also completed the strategic divestiture of its North American frozen pizza business to Nestlé for $3.7 billion, which resulted in a significant gain on discontinued operations. This strategic repositioning, alongside continued brand strength and global reach, positions the company for sustained growth. Financially, the company navigated increased input costs, notably for cocoa, sugar, dairy, and coffee, which were partially offset by lower grain costs. These cost pressures, combined with integration expenses related to the Cadbury acquisition, impacted operating margins. However, the company generated substantial cash flow from operations and continued to manage its debt levels effectively. The outlook for 2011 indicated expectations for continued organic net revenue and Operating EPS growth, demonstrating management's confidence in the company's strategic direction and ability to execute in a dynamic market.
Financial Highlights
53 data points| Revenue | $31.49B |
| Cost of Revenue | $19.62B |
| Gross Profit | $11.87B |
| R&D Expenses | $404.00M |
| SG&A Expenses | $9.14B |
| Operating Income | $2.50B |
| Interest Expense | $1.54B |
| Net Income | $4.11B |
| EPS (Basic) | $2.40 |
| EPS (Diluted) | $2.39 |
| Shares Outstanding (Basic) | 1.72B |
| Shares Outstanding (Diluted) | 1.72B |
Key Highlights
- 1Net revenues surged by 27.0% to $49.2 billion in 2010, largely due to the significant acquisition of Cadbury.
- 2The company divested its North American frozen pizza business to Nestlé for $3.7 billion, resulting in a $1.596 billion gain on discontinued operations.
- 3Diluted Earnings Per Share (EPS) attributable to Kraft Foods increased by 17.7% to $2.39 in 2010.
- 4Operating income increased by 9.3% to $5.666 billion, though operating margin decreased from 13.4% to 11.5% due to higher input costs and integration expenses.
- 5Commodity costs increased by approximately $1.0 billion in 2010 compared to 2009, primarily due to higher cocoa, sugar, dairy, and coffee prices.
- 6The company's total debt increased to $28.7 billion, with a debt-to-capitalization ratio of 0.44, primarily reflecting financing for the Cadbury acquisition.
- 7Kraft Foods continues to invest in research and development, with R&D expenses totaling $583 million in 2010.