01—Abstract
Summary
Summary of the 10-K filed February 2, 2024. Cited figures are marked; the original filing is the authoritative source.
Mondelez International, Inc. (MDLZ) reported strong top-line growth for the fiscal year ended December 31, 2023, with net revenues increasing by 14.4% to $36.0 billiona.
This growth was primarily driven by organic net revenue expansion of 14.7%b, fueled by significant net pricing actions and a favorable volume/mix across its snack categories. The company successfully integrated key acquisitions from 2022, including Ricolino and Clif Bar, which contributed to the revenue uplift. Despite facing macroeconomic headwinds such as inflationary pressures and currency volatility, Mondelez demonstrated resilience.
Adjusted Earnings Per Share (Adjusted EPS) saw a healthy increase of 14.3% to $3.19c, or 19.0% on a constant currency basis, reflecting effective cost management and pricing strategies. The company continues to focus on its four strategic priorities: accelerating consumer-centric growth, driving operational excellence, building a winning growth culture, and scaling sustainable snacking. These efforts position Mondelez to navigate ongoing economic uncertainties and deliver long-term value to shareholders.
02—Key points
Key Highlights
- Net revenues increased by 14.4% to $36.0 billion in 2023, with organic net revenue growing by 14.7%.
- Adjusted EPS grew by 14.3% to $3.19, or 19.0% on a constant currency basis, indicating strong operational performance.
- The company benefited from significant net pricing actions across all regions, along with favorable volume/mix, particularly in emerging markets.
- Acquisitions completed in 2022, such as Ricolino and Clif Bar, contributed positively to revenue growth.
- Mondelez maintained a strong focus on operational excellence and cost management despite facing higher input costs.
- The company returned value to shareholders through dividends and share repurchases, repurchasing $1.6 billion of stock under its new authorization.
- Despite global macroeconomic uncertainty, including inflation and currency volatility, the company demonstrated robust demand for its snack products.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Mondelez International, Inc. kept $0.14.
- Revenue$36.02B100.0%
- Cost of revenue−$22.25B61.8%
- Gross profit$13.76B38.2%
- Operating costs−$8.26B22.9%
- Operating income$5.50B15.3%
- Interest, other & tax−$543.0M1.5%
- Net income$4.96B13.8%
Where FY2023 revenue went
$36.02B- Cost of revenue: $22.25B, 62% of revenue
- SG&A: $8.00B, 22% of revenue
- Net income: $4.96B, 14% of revenue
- R&D: $380.0M, 1.1% of revenue
- Interest, other & tax: $543.0M, 1.5% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 2, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $36.02B$31.50B | +14.4% |
| Cost of Revenue | $22.25B$20.18B | +10.2% |
| Gross Profit | $13.76B$11.31B | +21.7% |
| R&D Expenses | $380.00M$346.00M | +9.8% |
| SG&A Expenses | $8.00B$7.38B | +8.4% |
| Operating Income | $5.50B$3.53B | +55.7% |
| Interest Expense | $550.00M$428.00M | +28.5% |
| Net Income | $4.96B$2.72B | +82.5% |
| EPS (Basic) | $3.64$1.97 | +84.8% |
| EPS (Diluted) | $3.62$1.96 | +84.7% |
| Shares Outstanding (Basic) | 1.36B1.38B | −1.1% |
| Shares Outstanding (Diluted) | 1.37B1.39B | −1.1% |
05—Questions
Frequently Asked Questions
How did Mondelez International perform financially in 2023?
In fiscal year 2023, Mondelez International reported a significant increase in net revenues, up 14.4% to $36.0 billion, driven by organic net revenue growth of 14.7%. Adjusted EPS also saw a strong increase of 14.3% to $3.19. This performance was supported by effective pricing strategies and favorable volume/mix, alongside contributions from recent acquisitions.
What are the key drivers of Mondelez's revenue growth?
The primary drivers of Mondelez's revenue growth in 2023 were higher net pricing across all regions and favorable volume/mix, particularly strong in emerging markets. Acquisitions made in 2022, such as Ricolino and Clif Bar, also contributed to the revenue increase. The company continues to benefit from the global consumer trend of increased snacking.
How is Mondelez managing rising input costs and inflation?
Mondelez is managing rising input costs and inflation through a combination of strategic pricing actions, productivity and cost-saving initiatives, and hedging programs. The company's focus on operational excellence and its 'Simplify to Grow' program are key components of its cost management strategy.
What is Mondelez's strategy for long-term growth?
Mondelez's strategy is centered on four key priorities: accelerating consumer-centric growth by focusing on its core chocolate, biscuit, and baked snack categories; driving operational excellence through efficiency and cost discipline; building a winning growth culture with empowered local teams; and scaling sustainable snacking initiatives. The company also actively pursues strategic acquisitions to expand its portfolio and geographic reach.
06—Continue