10-KPeriod: FY2022

Mondelez International, Inc. Annual Report, Year Ended Dec 31, 2022

Filed February 3, 2023For Securities:MDLZ

Summary

Mondelez International, Inc. reported strong net revenue growth of 9.7% to $31.5 billion for the fiscal year ended December 31, 2022. This growth was primarily driven by a combination of higher net pricing and favorable volume/mix across its snack categories, further boosted by strategic acquisitions including Chipita, Clif Bar, and Ricolino. Despite the revenue increase, reported operating income and net earnings saw a significant decline year-over-year, largely due to lapping prior-year gains on equity method transactions, unfavorable mark-to-market impacts, and costs associated with the war in Ukraine, the European Commission legal matter, and integration expenses. Adjusted EPS showed a modest increase of 3.5% to $2.95, or 11.9% on a constant currency basis, indicating resilience in core operational performance. The company operates across four segments: Latin America, AMEA, Europe, and North America, with all segments contributing to net revenue growth, particularly Latin America and North America. Challenges include persistent inflation, supply chain disruptions, and currency volatility, particularly the strengthening U.S. dollar, which negatively impacted reported results. Mondelez International is actively managing these challenges through pricing actions, cost controls, and strategic investments, focusing on its four growth priorities: consumer-centric growth, operational excellence, a winning growth culture, and scaling sustainable snacking. The company also continues its share repurchase program, demonstrating a commitment to returning value to shareholders.

Financial Highlights

55 data points
Beta

Revenue

$31.50B

35.9% Gross Margin

Net Income

$2.72B

8.6% Net Margin

EPS (Diluted)

$1.96

Total Assets

$71.16B

Cash & Equivalents

$1.95B

Free Cash Flow

$3.00B

Financial Statements
Beta
Revenue$31.50B
Cost of Revenue$20.18B
Gross Profit$11.31B
R&D Expenses$346.00M
SG&A Expenses$7.38B
Operating Income$3.53B
Interest Expense$428.00M
Net Income$2.72B
EPS (Basic)$1.97
EPS (Diluted)$1.96
Shares Outstanding (Basic)1.38B
Shares Outstanding (Diluted)1.39B

Key Highlights

  • 1Net revenues increased by 9.7% to $31.5 billion in 2022, driven by higher pricing, acquisitions, and favorable volume/mix.
  • 2Diluted EPS attributable to Mondelēz International decreased by 35.5% to $1.96 in 2022, largely due to one-time charges and prior-year gains.
  • 3Adjusted EPS increased by 3.5% to $2.95 in 2022, indicating underlying operational strength.
  • 4The company completed three significant acquisitions in 2022: Chipita, Clif Bar & Company, and Ricolino, to expand its portfolio.
  • 5Unfavorable currency translation negatively impacted net revenues by $1.9 billion.
  • 6The company incurred incremental costs due to the war in Ukraine, impacting operating income.
  • 7Mondelez International is executing on its 'Simplify to Grow' program aimed at cost structure optimization and operational efficiencies.

Frequently Asked Questions

Mondelez International's net revenues grew by 9.7% to $31.5 billion in 2022. This growth was primarily fueled by higher net pricing across its categories, the incremental revenue from recent acquisitions (Chipita, Clif Bar, and Ricolino), and a favorable volume/mix, particularly in emerging markets. The company benefited from continued consumer demand for its snack products.

Reported diluted EPS decreased by 35.5% to $1.96 in 2022 primarily due to several one-time items and the comparison against a strong prior year. Key factors included lapping prior-year net gains on equity method transactions, unfavorable year-over-year mark-to-market impacts from derivatives, costs associated with the European Commission legal matter, incremental costs incurred due to the war in Ukraine, higher acquisition-related and integration costs, and intangible asset impairment charges.

Mondelez International is addressing rising input costs and inflation through a multi-pronged strategy. This includes implementing higher net pricing across its products, driving operational excellence to improve efficiencies and reduce costs through programs like 'Simplify to Grow,' and utilizing hedging techniques for raw materials. The company is also focused on optimizing its supply chain and managing overhead costs to mitigate the impact on profitability.

In 2022, Mondelez completed significant acquisitions, including Chipita, Clif Bar & Company, and Ricolino. These acquisitions contributed to the company's net revenue growth, expanding its presence in key snacking categories and geographies. While these acquisitions add scale and strategic value, they also incurred acquisition-related and integration costs, which impacted reported earnings in 2022. The company anticipates these businesses will contribute positively to future growth and profitability.