10-KPeriod: FY2020

Mondelez International, Inc. Annual Report, Year Ended Dec 31, 2020

Filed February 5, 2021For Securities:MDLZ

Summary

Mondelez International, Inc. (MDLZ) reported net revenues of $26.6 billion 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.

Financial Highlights

54 data points
Beta

Revenue

$26.58B

39.3% Gross Margin

Net Income

$3.56B

13.4% Net Margin

EPS (Diluted)

$2.47

Total Assets

$67.81B

Cash & Equivalents

$3.65B

Free Cash Flow

$3.10B

Financial Statements
Beta
Revenue$26.58B
Cost of Revenue$16.14B
Gross Profit$10.45B
R&D Expenses$332.00M
SG&A Expenses$6.10B
Operating Income$3.85B
Interest Expense$423.00M
Net Income$3.56B
EPS (Basic)$2.48
EPS (Diluted)$2.47
Shares Outstanding (Basic)1.43B
Shares Outstanding (Diluted)1.44B

Key Highlights

  • 1Net 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.
  • 2Organic Net Revenue grew by 3.7% to $26.8 billion in 2020, indicating underlying business strength despite the COVID-19 pandemic.
  • 3The company's "Simplify to Grow" program continues to focus on operational excellence and cost structure improvements.
  • 4Mondelez International experienced mixed impacts from COVID-19, with increased demand for certain products offset by declines in out-of-home consumption categories.
  • 5Operating income was $3.85 billion, with adjusted operating income increasing by 3.2% to $4.4 billion, demonstrating effective cost management.
  • 6Diluted EPS attributable to Mondelēz International decreased by 8.2% to $2.47, partly due to prior-year benefits and transaction costs.
  • 7The 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.

Frequently Asked Questions

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.

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.

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.

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.