Summary
Mondelez International, Inc. (formerly Kraft Foods Inc.) reported significant changes in its financial performance for the nine months ended September 30, 2010, primarily driven by the transformative acquisition of Cadbury and the divestiture of its North American frozen pizza business. Revenue growth was substantial, with a 25.8% increase to $35.4 billion for the nine-month period, largely due to the inclusion of Cadbury's operations. However, diluted Earnings Per Share (EPS) from continuing operations saw a decline, falling to $1.13 from $1.45 in the prior year, reflecting increased interest expenses and integration costs. Despite this, the company's overall net earnings attributable to Kraft Foods increased significantly to $3.57 billion due to the inclusion of a large gain from the discontinued pizza business, which more than offset the decline in continuing operations EPS. Investors should note the significant increase in long-term debt by over $11 billion to $29.6 billion, primarily to finance the Cadbury acquisition. The company is actively managing its integration and restructuring costs, with significant charges incurred for combining operations with Cadbury. While the core business shows organic growth, the strategic actions taken have materially altered the company's financial structure and are key to understanding its future performance.
Financial Highlights
51 data points| Revenue | $11.86B |
| Cost of Revenue | $7.54B |
| Gross Profit | $4.32B |
| SG&A Expenses | $2.76B |
| Operating Income | $1.52B |
| Interest Expense | $433.00M |
| Net Income | $754.00M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.43 |
| Shares Outstanding (Basic) | 1.75B |
| Shares Outstanding (Diluted) | 1.75B |
Key Highlights
- 1Net revenues increased by 25.8% to $35.4 billion for the nine months ended September 30, 2010, driven by the Cadbury acquisition and organic growth.
- 2Diluted EPS from continuing operations decreased to $1.13 from $1.45 in the same period, impacted by integration costs and higher interest expenses.
- 3The company completed the divestiture of its North American frozen pizza business for $3.7 billion, resulting in a significant gain from discontinued operations.
- 4Long-term debt increased by approximately $11.5 billion to $29.6 billion, primarily to fund the $18.5 billion Cadbury acquisition.
- 5Significant integration charges of $284 million were incurred for combining operations with Cadbury, with further charges expected.
- 6Goodwill and Intangible Assets saw a substantial increase due to the Cadbury acquisition, reaching $36.8 billion and $25.5 billion respectively.
- 7The company confirmed its 2010 guidance for organic net revenue growth of 3-4% and Operating EPS of at least $2.00.