01—Abstract
Summary
Summary of the 10-K filed February 5, 2021. Cited figures are marked; the original filing is the authoritative source.
Mondelez International, Inc. (MDLZ) reported net revenues of $26.6 billiona for the fiscal year ended December 30, 2020.
The company, a global leader in snacking, navigated the challenges of the COVID-19 pandemic by focusing on its "Simplify to Grow" strategy and three key priorities: accelerating consumer-centric growth, driving operational excellence, and building a winning growth culture. The company saw varied impacts from the pandemic, with increased demand for in-home consumption products like biscuits and chocolate, particularly in developed markets. Conversely, out-of-home consumption categories such as gum, candy, travel retail, and foodservice experienced declines due to lockdowns and restrictions.
Despite these mixed effects and unfavorable currency translation impacts, Mondelez International demonstrated resilience with an increase in organic net revenue and maintained strong operating income. The company continued its strategic investments in brands and capabilities, positioning itself for long-term value creation for shareholders.
02—Key points
Key Highlights
- Net revenues reached $26.6 billion in 2020, showing growth driven by biscuits and chocolate categories, particularly in developed markets, due to increased in-home consumption.
- Organic Net Revenue grew by 3.7% to $26.8 billion in 2020, indicating underlying business strength despite the COVID-19 pandemic.
- The company's "Simplify to Grow" program continues to focus on operational excellence and cost structure improvements.
- Mondelez International experienced mixed impacts from COVID-19, with increased demand for certain products offset by declines in out-of-home consumption categories.
- Operating income was $3.85 billion, with adjusted operating income increasing by 3.2% to $4.4 billion, demonstrating effective cost management.
- Diluted EPS attributable to Mondelēz International decreased by 8.2% to $2.47, partly due to prior-year benefits and transaction costs.
- The company continued its share repurchase program, repurchasing approximately $1.4 billion of common stock in 2020, and maintained its commitment to returning capital to shareholders through dividends.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2020, Mondelez International, Inc. kept $0.13.
- Revenue$26.58B100.0%
- Cost of revenue−$16.14B60.7%
- Gross profit$10.45B39.3%
- Operating costs−$6.59B24.8%
- Operating income$3.85B14.5%
- Interest, other & tax−$298.0M1.1%
- Net income$3.56B13.4%
Where FY2020 revenue went
$26.58B- Cost of revenue: $16.14B, 61% of revenue
- SG&A: $6.10B, 23% of revenue
- Net income: $3.56B, 13% of revenue
- R&D: $332.0M, 1.2% of revenue
- Other operating costs: $163.0M, 0.6% of revenue
- Interest, other & tax: $298.0M, 1.1% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2020filed February 5, 2021Financial Statements
FY2020 against FY2019
| Line item | FY2020FY2019 | Change |
|---|---|---|
| Revenue | $26.58B$25.87B | +2.8% |
| Cost of Revenue | $16.14B$15.53B | +3.9% |
| Gross Profit | $10.45B$10.34B | +1.1% |
| R&D Expenses | $332.00M$351.00M | −5.4% |
| SG&A Expenses | $6.10B$6.14B | −0.6% |
| Operating Income | $3.85B$3.84B | +0.3% |
| Interest Expense | $423.00M$484.00M | −12.6% |
| Net Income | $3.56B$3.93B | −9.5% |
| EPS (Basic) | $2.48$2.72 | −8.8% |
| EPS (Diluted) | $2.47$2.69 | −8.2% |
| Shares Outstanding (Basic) | 1.43B1.45B | −1.0% |
| Shares Outstanding (Diluted) | 1.44B1.46B | −1.2% |
05—Questions
Frequently Asked Questions
What was Mondelez International's financial performance in 2020?
In 2020, Mondelez International reported net revenues of $26.6 billion, an increase from the previous year, driven by organic net revenue growth of 3.7%. The company achieved operating income of $3.85 billion. While diluted EPS saw a slight decrease, adjusted EPS increased, reflecting the company's focus on operational efficiency and strategic priorities.
How did the COVID-19 pandemic impact Mondelez International's business?
The pandemic had a mixed impact. Demand for in-home consumption products like biscuits and chocolate increased, particularly in developed markets. However, categories more associated with out-of-home consumption, such as gum, candy, travel retail, and foodservice, experienced declines due to lockdowns and restrictions. The company also noted unfavorable currency translation impacts.
What are Mondelez International's key strategic priorities?
Mondelez International's strategy is centered around three priorities: accelerating consumer-centric growth by meeting evolving consumer needs, driving operational excellence through cost discipline and efficiency improvements, and creating a winning growth culture by empowering local teams and embracing digital transformation.
What is the company's approach to capital allocation and shareholder returns?
Mondelez International is committed to returning capital to shareholders through dividends, which were increased in 2020. The company also actively engages in share repurchases, with approximately $1.4 billion repurchased in 2020, and has a significant remaining authorization for future repurchases. This balanced approach to capital allocation aims to enhance shareholder value.
06—Continue