What is the status of the proposed spin-off of the North American grocery business?

The company announced on August 4, 2011, its intention to split into two independent companies: a global snacks business and a North American grocery business. The spin-off of the North American Grocery Business is expected to be completed by the end of 2012, subject to regulatory approvals and other conditions. The company has filed a registration statement on Form 10 with the SEC for the North American Grocery Business.

How are the spin-off and restructuring costs impacting the company's financials?

The company incurred $39 million in Spin-Off transaction and transition costs within selling, general and administrative expenses and $134 million in financing and related costs impacting interest and other expenses during the first quarter of 2012. Additionally, $78 million in restructuring charges and $1 million in implementation costs were recorded related to the 2012-2014 Restructuring Program. These costs are impacting reported net earnings and EPS.

What is the outlook for net revenue and earnings growth?

The company expects 2012 Organic Net Revenue growth of approximately 5 percent and Operating EPS growth of at least 9 percent on a constant currency basis, reflecting confidence in its business momentum despite a challenging economic environment and input cost inflation.

How is the company addressing rising commodity costs?

The company is addressing higher commodity costs, primarily driven by coffee beans, packaging materials, dairy, grains, oils, and nuts, through a combination of higher pricing, cost management initiatives including its end-to-end cost management program, and overhead cost control. These measures are expected to continue to be employed to mitigate future cost increases.

MDLZ 10-Q Quarterly Report Q1 FY2012 — Revenue, Net Income, EPS

Summary

Mondelez International, Inc. (formerly Kraft Foods Inc.) reported net revenues of $13.1 billion for the first quarter of 2012, a 4.1% increase year-over-year, driven by higher net pricing and favorable volume/mix. The company's operating income rose by 2.7% to $1.69 billion. A significant development for investors is the company's ongoing strategic plan to split into two independent publicly traded companies: a global snacks business and a North American grocery business. This "Spin-Off" is expected to be completed by the end of 2012 and is subject to various conditions. The company has incurred substantial "Spin-Off Costs" related to this transaction, impacting current period expenses and financing activities.

Financial Highlights

49 data points

Beta

Revenue

$8.67B

0.4% Gross Margin

Net Income

$812.00M

0.1% Net Margin

EPS (Diluted)

$0.46

Total Assets

$96.65B

Cash & Equivalents

$1.85B

Free Cash Flow

-$1.19B

Financial Statements

Beta

Revenue	$8.67B
Cost of Revenue	$5.47B
Gross Profit	$3.19B
SG&A Expenses	$2.19B
Operating Income	$903.00M
Net Income	$812.00M
EPS (Basic)	$0.46
EPS (Diluted)	$0.46
Shares Outstanding (Basic)	1.77B
Shares Outstanding (Diluted)	1.78B

Key Highlights

1Net revenues increased by 4.1% to $13.1 billion in Q1 2012 compared to Q1 2011.
2Operating income increased by 2.7% to $1.69 billion in Q1 2012.
3Diluted Earnings Per Share (EPS) attributable to Kraft Foods increased to $0.46 from $0.45 in the prior year period.
4The company is actively planning a spin-off of its North American grocery business to create two independent companies.
5Significant "Spin-Off Costs" and "Restructuring Costs" are being incurred, impacting current period financial results.
6The company anticipates continued commodity cost inflation and expects to address it through pricing actions and cost management.
7Strong performance was noted in Kraft Foods Developing Markets and Kraft Foods Europe segments.

Mondelez International, Inc. Quarterly Report for Q1 Ended Mar 31, 2012

Summary

Financial Highlights

Key Highlights

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