10-KPeriod: FY2018

Mondelez International, Inc. Annual Report, Year Ended Dec 31, 2018

Filed February 8, 2019For Securities:MDLZ

Summary

Mondelez International, Inc. (MDLZ) reported stable net revenues of $25.9 billion 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.

Financial Highlights

55 data points
Beta

Revenue

$25.94B

39.9% Gross Margin

Net Income

$3.32B

12.8% Net Margin

EPS (Diluted)

$2.23

Total Assets

$62.62B

Cash & Equivalents

$1.10B

Free Cash Flow

$2.85B

Financial Statements
Beta
Revenue$25.94B
Cost of Revenue$15.59B
Gross Profit$10.35B
R&D Expenses$362.00M
SG&A Expenses$6.47B
Operating Income$3.31B
Interest Expense$462.00M
Net Income$3.32B
EPS (Basic)$2.25
EPS (Diluted)$2.23
Shares Outstanding (Basic)1.47B
Shares Outstanding (Diluted)1.49B

Key Highlights

  • 1Achieved stable net revenues of $25.9 billion for the fiscal year 2018, reflecting consistent performance across its global operations.
  • 2Reported strong growth in Adjusted EPS, indicating effective cost management and operational efficiencies.
  • 3Continued to invest in innovation and consumer-centric growth by modernizing its global research and development facilities.
  • 4Maintains a robust global presence with operations in over 80 countries and sales in more than 150 countries, supported by iconic brands.
  • 5Actively managing risks associated with currency fluctuations and commodity price volatility through hedging and cost control strategies.
  • 6Demonstrated commitment to operational excellence through initiatives aimed at improving supply chain efficiency and reducing overhead costs.
  • 7Presented a clear strategic plan focused on consumer needs, operational improvements, and fostering a growth-oriented culture.

Frequently Asked Questions

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.

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.

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.

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.