10-KPeriod: FY2019

Mondelez International, Inc. Annual Report, Year Ended Dec 31, 2019

Filed February 7, 2020For Securities:MDLZ

Summary

Mondelez International, Inc. reported stable net revenues of $25.9 billion for the fiscal year ended December 31, 2019, demonstrating resilience in a competitive global snack market. The company's strategic focus on consumer-centric growth, operational excellence, and a winning culture is a key driver for its performance. While overall net revenues remained flat compared to the previous year, Organic Net Revenue saw a healthy increase of 4.1%, indicating growth from ongoing business activities excluding currency fluctuations, acquisitions, and divestitures. This period saw the company continue to invest in its brands and operational efficiency, including modernizing its R&D facilities. Despite facing challenges like unfavorable currency translations and the impact of divestitures, Mondelez International demonstrated solid financial footing. The company also emphasized its commitment to sustainability and mindful snacking, aligning with evolving consumer preferences. Key financial metrics, such as diluted EPS, saw an increase, supported by operational gains and tax reforms. The company's strong operational cash flow and ongoing share repurchase program underscore its financial health and commitment to shareholder value.

Financial Highlights

54 data points
Beta

Revenue

$25.87B

40.0% Gross Margin

Net Income

$3.93B

15.2% Net Margin

EPS (Diluted)

$2.69

Total Assets

$64.52B

Cash & Equivalents

$1.33B

Free Cash Flow

$3.04B

Financial Statements
Beta
Revenue$25.87B
Cost of Revenue$15.53B
Gross Profit$10.34B
R&D Expenses$351.00M
SG&A Expenses$6.14B
Operating Income$3.84B
Interest Expense$484.00M
Net Income$3.93B
EPS (Basic)$2.72
EPS (Diluted)$2.69
Shares Outstanding (Basic)1.45B
Shares Outstanding (Diluted)1.46B

Key Highlights

  • 1Net revenues remained stable at $25.9 billion, with a 4.1% increase in Organic Net Revenue, reflecting underlying business growth.
  • 2The company is executing a three-pronged strategy: accelerating consumer-centric growth, driving operational excellence, and creating a winning growth culture.
  • 3Significant investment in modernizing global R&D facilities to support innovation.
  • 4Diluted EPS increased by 16.2% to $2.65, driven by operational gains and positive impacts from Swiss tax reform.
  • 5The company continued its share repurchase program, repurchasing approximately $1.5 billion of common stock in 2019.
  • 6Commitment to sustainability is evident through goals for reduced environmental impact and expansion of sustainable sourcing programs like Cocoa Life.
  • 7Geographic diversification: 74.4% of net revenues were generated outside the United States.

Frequently Asked Questions

In the fiscal year ended December 31, 2019, Mondelez International reported net revenues of $25.9 billion, which was largely stable compared to the prior year. However, Organic Net Revenue increased by 4.1% to $26.9 billion, indicating underlying business growth. Diluted Earnings Per Share (EPS) attributable to Mondelēz International increased by 16.2% to $2.65, boosted by operational improvements and the impact of tax reforms.

Mondelez International's strategy focuses on three key priorities: accelerating consumer-centric growth by meeting evolving consumer snacking needs; driving operational excellence through cost discipline and efficiency improvements in its supply chain and sales efforts; and creating a winning growth culture by becoming more agile, digital, and locally focused.

The company focused on managing costs through its 'Simplify to Grow' program, aimed at reducing operating costs in its supply chain and overhead. They also addressed higher input costs through pricing actions and hedging strategies. Selling, general, and administrative expenses saw a decrease due to various factors, including favorable currency impacts and lower restructuring program costs, though route-to-market investments and higher advertising/promotion costs led to an underlying increase.

Mondelez International highlighted several key risks, including intense competition in the food and snacking industry, the need to adapt to changing consumer preferences and distribution channels (like e-commerce), protecting and enhancing brand reputation, risks associated with global operations (currency fluctuations, geopolitical events), commodity price volatility, cybersecurity threats, and regulatory changes.