01—Abstract
Summary
Summary of the 10-K filed February 8, 2019. Cited figures are marked; the original filing is the authoritative source.
Mondelez International, Inc. (MDLZ) reported stable net revenues of $25.9 billiona for the fiscal year ended December 31, 2018, demonstrating resilience despite a challenging global economic environment and ongoing strategic shifts.
The company's focus on its three strategic priorities—accelerating consumer-centric growth, driving operational excellence, and creating a winning growth culture—underpins its approach to navigating competitive markets and evolving consumer preferences. Key financial performance metrics showed growth in Adjusted EPS, indicating effective cost management and operational improvements. The company's global footprint across more than 80 countries and its portfolio of iconic brands like Oreo, Cadbury, and Trident provide a strong foundation for future expansion, particularly in emerging markets.
While facing risks related to currency fluctuations and commodity prices, Mondelez is actively managing these through hedging and cost control measures. The company also made significant progress in modernizing its R&D facilities, highlighting its commitment to innovation and consumer-centric product development.
02—Key points
Key Highlights
- Achieved stable net revenues of $25.9 billion for the fiscal year 2018, reflecting consistent performance across its global operations.
- Reported strong growth in Adjusted EPS, indicating effective cost management and operational efficiencies.
- Continued to invest in innovation and consumer-centric growth by modernizing its global research and development facilities.
- Maintains a robust global presence with operations in over 80 countries and sales in more than 150 countries, supported by iconic brands.
- Actively managing risks associated with currency fluctuations and commodity price volatility through hedging and cost control strategies.
- Demonstrated commitment to operational excellence through initiatives aimed at improving supply chain efficiency and reducing overhead costs.
- Presented a clear strategic plan focused on consumer needs, operational improvements, and fostering a growth-oriented culture.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2018, Mondelez International, Inc. kept $0.13.
- Revenue$25.94B100.0%
- Cost of revenue−$15.59B60.1%
- Gross profit$10.35B39.9%
- Operating costs−$7.04B27.1%
- Operating income$3.31B12.8%
- Interest, other & tax$5.0M0.0%
- Net income$3.32B12.8%
Where FY2018 revenue went
$25.94B- Cost of revenue: $15.59B, 60% of revenue
- SG&A: $6.47B, 25% of revenue
- Operating income: $3.31B, 13% of revenue
- R&D: $362.0M, 1.4% of revenue
- Other operating costs: $203.0M, 0.8% of revenue
Kept 13% as operating income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2018filed February 8, 2019Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $25.94B$25.90B | +0.2% |
| Cost of Revenue | $15.59B$15.83B | −1.5% |
| Gross Profit | $10.35B$10.03B | +3.2% |
| R&D Expenses | $362.00M$366.00M | −1.1% |
| SG&A Expenses | $6.47B$5.94B | +9.0% |
| Operating Income | $3.31B$3.46B | −4.3% |
| Interest Expense | $462.00M$396.00M | +16.7% |
| Net Income | $3.32B$2.83B | +17.3% |
| EPS (Basic) | $2.25$1.87 | +20.3% |
| EPS (Diluted) | $2.23$1.85 | +20.5% |
| Shares Outstanding (Basic) | 1.47B1.51B | −2.7% |
| Shares Outstanding (Diluted) | 1.49B1.53B | −2.9% |
05—Questions
Frequently Asked Questions
What was Mondelez's overall financial performance in 2018?
In 2018, Mondelez International reported net revenues of $25.9 billion, largely stable compared to the prior year. The company saw growth in its Adjusted EPS, indicating effective operational management and cost control. The company's strategy is focused on driving long-term growth through consumer-centric initiatives and operational excellence.
How is Mondelez addressing evolving consumer preferences and market trends?
Mondelez is focusing on consumer-centric growth by identifying and addressing evolving consumer needs and snacking habits through a 'demand spaces' approach. The company is also evolving its innovation strategy to meet diverse, local consumer needs and plans to test and scale new product offerings quickly. A significant focus is on well-being and healthy snacking options, with portion-controlled snacks representing a meaningful segment of their portfolio.
What are the key risks Mondelez highlighted in its filing?
Key risks identified include operating in a highly competitive industry, the need to adapt to new distribution channels like e-commerce, maintaining brand reputation and image, accurately predicting consumer preferences, and managing risks associated with global operations such as currency fluctuations, geopolitical instability, and regulatory changes. Commodity price volatility and cybersecurity threats were also noted as significant risks.
How did Mondelez's regional performance vary in 2018?
Europe remained the largest segment by net revenue ($10.1 billion), showing growth driven by favorable volume/mix and currency. North America net revenues also grew slightly ($6.9 billion), but segment operating income saw a significant decrease due to factors including pension plan changes and higher manufacturing costs. Latin America experienced a notable decline in net revenues ($3.2 billion), primarily due to unfavorable currency and volume/mix, while AMEA's net revenues were relatively stable ($5.7 billion) with improved operating income.
06—Continue