10-KPeriod: FY2013

Mondelez International, Inc. Annual Report, Year Ended Dec 31, 2013

Filed March 3, 2014For Securities:MDLZ

Summary

Mondelez International, Inc. (MDLZ) reported solid performance for the fiscal year ended December 31, 2013, following its significant 2012 spin-off of the North American grocery business. The company generated $35.3 billion in net revenues, with organic net revenues showing a healthy 3.9% increase, indicating strong underlying business growth across its global snack portfolio. Diluted Earnings Per Share (EPS) from continuing operations saw a substantial increase of 46.6% to $1.29, reflecting improved profitability and operational efficiencies. Key strategic initiatives, including transforming its snacking portfolio, revolutionizing selling capabilities, and driving efficiency to fuel growth, are showing positive results. The company also made significant strides in managing its capital structure, repurchasing $2.7 billion in common stock and completing substantial debt retirements. Despite challenges like commodity cost volatility and currency fluctuations, particularly in emerging markets, Mondelez demonstrated resilience. The company's focus on its Power Brands and strategic investments in high-growth markets position it for continued success in the global snacking industry.

Financial Highlights

53 data points
Beta

Revenue

$35.30B

37.1% Gross Margin

Net Income

$3.92B

11.1% Net Margin

EPS (Diluted)

$2.19

Total Assets

$72.46B

Free Cash Flow

$4.79B

Financial Statements
Beta
Revenue$35.30B
Cost of Revenue$22.19B
Gross Profit$13.11B
R&D Expenses$471.00M
SG&A Expenses$8.68B
Operating Income$3.97B
Interest Expense$1.02B
Net Income$3.92B
EPS (Basic)$2.21
EPS (Diluted)$2.19
Shares Outstanding (Basic)1.77B
Shares Outstanding (Diluted)1.79B

Key Highlights

  • 1Net revenues of $35.3 billion, with organic net revenues growing 3.9%, demonstrating underlying business strength.
  • 2Diluted EPS from continuing operations increased by 46.6% to $1.29, showcasing improved profitability.
  • 3Significant share repurchase activity with $2.7 billion of common stock repurchased during the year.
  • 4Proactive debt management, including retiring $3.4 billion of long-term debt in December 2013.
  • 5Strategic focus on global snack brands and expansion in emerging markets.
  • 6Positive outlook for 2014 with expected Organic Net Revenue growth of approximately 4% and double-digit Adjusted EPS growth.
  • 7A material weakness in internal control over financial reporting related to income tax accounting was identified, with remediation plans underway.

Frequently Asked Questions

Mondelez International reported net revenues of $35.3 billion, a 0.8% increase year-over-year. Organic Net Revenues grew by 3.9%, indicating strong underlying business growth. Diluted EPS from continuing operations saw a significant increase of 46.6% to $1.29.

Mondelez International's strategy centers on five key areas: Unleashing the Power of its People, Transforming Snacking through its Power Brands, Revolutionizing Selling, Driving Efficiency to Fuel Growth, and Protecting the Well-being of its Planet. These strategies aim to deliver top-tier financial performance and create a great place to work.

Yes, the company repurchased $2.7 billion of its common stock, including $1.5 billion through an accelerated share repurchase program. It also completed significant debt retirements totaling $3.4 billion in December 2013, funded partly by a €2.4 billion Euro note issuance.

Yes, the company identified a material weakness in internal control over financial reporting related to the monitoring and oversight of controls for income tax accounting. Remediation plans are in place to address this.