01—Abstract
Summary
Summary of the 10-K filed March 3, 2014. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 billionb 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.
02—Key points
Key Highlights
- Net revenues of $35.3 billion, with organic net revenues growing 3.9%, demonstrating underlying business strength.
- Diluted EPS from continuing operations increased by 46.6% to $1.29, showcasing improved profitability.
- Significant share repurchase activity with $2.7 billion of common stock repurchased during the year.
- Proactive debt management, including retiring $3.4 billion of long-term debt in December 2013.
- Strategic focus on global snack brands and expansion in emerging markets.
- Positive outlook for 2014 with expected Organic Net Revenue growth of approximately 4% and double-digit Adjusted EPS growth.
- A material weakness in internal control over financial reporting related to income tax accounting was identified, with remediation plans underway.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Mondelez International, Inc. kept $0.11.
- Revenue$35.30B100.0%
- Cost of revenue−$22.19B62.9%
- Gross profit$13.11B37.1%
- Operating costs−$9.14B25.9%
- Operating income$3.97B11.2%
- Interest, other & tax−$56.0M0.2%
- Net income$3.92B11.1%
Where FY2013 revenue went
$35.30B- Cost of revenue: $22.19B, 63% of revenue
- SG&A: $8.68B, 25% of revenue
- Net income: $3.92B, 11% of revenue
- R&D: $471.0M, 1.3% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed March 3, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $35.30B$35.02B | +0.8% |
| Cost of Revenue | $22.19B$21.94B | +1.1% |
| Gross Profit | $13.11B$13.08B | +0.3% |
| R&D Expenses | $471.00M$462.00M | +1.9% |
| SG&A Expenses | $8.68B$9.18B | −5.4% |
| Operating Income | $3.97B$3.64B | +9.2% |
| Interest Expense | $1.02B$1.18B | −13.6% |
| Net Income | $3.92B$3.07B | +27.6% |
| EPS (Basic) | $2.21$1.73 | +27.7% |
| EPS (Diluted) | $2.19$1.71 | +28.1% |
| Shares Outstanding (Basic) | 1.77B1.78B | −0.2% |
| Shares Outstanding (Diluted) | 1.79B1.79B | 0.0% |
05—Questions
Frequently Asked Questions
What was Mondelez International's financial performance in 2013?
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.
What are the company's key strategic priorities?
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.
Did Mondelez International undertake any significant financial actions in 2013?
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.
Are there any material weaknesses in internal controls reported?
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.
06—Continue