Summary
Mondelez International, Inc. (formerly Kraft Foods Inc.) reported its first quarterly results as a standalone global snacks company following the spin-off of its North American grocery business, Kraft Foods Group, Inc., on October 1, 2012. For the third quarter of 2012, the company saw a slight decrease in net revenues to $12.9 billion, primarily impacted by unfavorable foreign currency. However, on an organic basis (excluding currency impacts and other factors), net revenues increased by 2.1%. Diluted Earnings Per Share (EPS) decreased significantly to $0.36 from $0.52 in the prior year, heavily influenced by substantial one-time Spin-Off costs totaling $683 million. Despite the reported decline in EPS, the company highlighted a 10.3% increase in Operating EPS (a non-GAAP measure excluding significant one-time costs) to $0.64, indicating underlying operational strength. The nine-month results also showed a dip in reported net revenues and EPS, but organic net revenues grew by 3.9% and operating EPS increased by 9.3%. The company incurred significant costs related to the spin-off, restructuring programs, and integration efforts, which impacted reported profitability. Management remains focused on driving organic growth through pricing and volume, while managing costs and streamlining operations. Investors should note the substantial one-time costs and the shift in business focus post-spin-off when evaluating the company's performance.
Financial Highlights
49 data points| Revenue | $8.33B |
| Cost of Revenue | $5.21B |
| Gross Profit | $3.12B |
| SG&A Expenses | $2.21B |
| Operating Income | $838.00M |
| Net Income | $657.00M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 1.78B |
| Shares Outstanding (Diluted) | 1.79B |
Key Highlights
- 1Completion of the spin-off of the North American grocery business, resulting in the renaming to Mondelēz International, Inc. and a strategic focus on global snacks.
- 2Third quarter 2012 net revenues decreased 2.4% to $12.9 billion, while organic net revenues (excluding currency and other impacts) increased 2.1%.
- 3Diluted EPS decreased 30.8% to $0.36 in Q3 2012, largely due to $683 million in Spin-Off costs recorded in the period.
- 4Operating EPS (a non-GAAP measure excluding special items) increased 10.3% to $0.64 in Q3 2012, demonstrating underlying operational improvement.
- 5Nine-month 2012 net revenues decreased 1.0% to $39.3 billion, with organic net revenues growing 3.9%.
- 6Nine-month 2012 diluted EPS decreased 7.9% to $1.40, while operating EPS increased 9.3% to $1.88.
- 7The company is undergoing a significant 2012-2014 Restructuring Program with total expected costs of $1.5 billion, impacting current period results.