Summary
Mondelez International, Inc. (formerly Kraft Foods Inc.) reported significant revenue growth in the second quarter and first half of 2010, primarily driven by the transformative acquisition of Cadbury. Net revenues increased by 25.3% in the quarter and 25.6% year-to-date, largely due to the inclusion of Cadbury's operations. However, the company also experienced a decrease in diluted Earnings Per Share (EPS) for the quarter, while the year-to-date EPS saw a substantial increase, largely influenced by a significant gain from the divestiture of the North American frozen pizza business. The company successfully integrated Cadbury, while also completing the sale of its frozen pizza business to Nestlé, demonstrating strategic portfolio management.
Financial Highlights
52 data points| Revenue | $12.25B |
| Cost of Revenue | $7.56B |
| Gross Profit | $4.69B |
| SG&A Expenses | $2.93B |
| Operating Income | $1.70B |
| Interest Expense | $444.00M |
| Net Income | $937.00M |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.53 |
| Shares Outstanding (Basic) | 1.75B |
| Shares Outstanding (Diluted) | 1.75B |
Key Highlights
- 1Significant Net Revenue Growth: Net revenues increased by 25.3% to $12.3 billion in Q2 2010 and by 25.6% to $23.6 billion in the first six months of 2010, primarily driven by the Cadbury acquisition.
- 2Cadbury Acquisition Integration: The company successfully completed the acquisition of Cadbury, integrating its operations into Kraft Foods' segments, which significantly boosted revenue and goodwill.
- 3Divestiture of Frozen Pizza Business: Completed the sale of the North American frozen pizza business to Nestlé for $3.7 billion, resulting in a substantial gain of $1.6 billion from discontinued operations for the six-month period.
- 4Increased Long-Term Debt: Total debt increased to $30.0 billion from $19.0 billion, largely due to the financing of the Cadbury acquisition through a $9.5 billion senior unsecured note issuance.
- 5Operational Restructuring and Integration Costs: Incurred significant integration program costs ($192 million year-to-date) related to combining operations with Cadbury, alongside ongoing cost-saving initiatives.
- 6Mixed EPS Performance: Diluted EPS attributable to Kraft Foods decreased by 5.4% to $0.53 in Q2 2010 but increased by 67.0% to $1.67 in the first six months of 2010, reflecting the impact of divestitures and acquisition-related costs.
- 7Positive Organic Net Revenue Growth: Excluding acquisition, divestiture, and currency impacts, organic net revenues grew by 2.0% in Q2 and 2.6% in the first six months, indicating underlying business performance.