Summary
Mondelez International, Inc. reported solid performance for the third quarter and first nine months of 2013, with net revenues increasing year-over-year, driven by organic growth. The company saw significant improvements in operating income and diluted EPS, largely due to a substantial benefit from the resolution of a Cadbury acquisition-related indemnification and lower Spin-Off costs compared to the prior year. The company also continued its strategic focus on cost savings through restructuring and integration programs. However, unfavorable foreign currency movements, particularly the devaluation of the Venezuelan bolivar, presented a headwind. Financially, Mondelez demonstrated prudent liquidity management, with strong operating cash flow and a newly established $4.5 billion revolving credit facility. The company also actively managed its capital structure, repaying significant debt maturities and continuing its share repurchase program. Despite ongoing restructuring and integration charges, the company maintained its focus on driving organic growth and improving profitability, while reaffirming its full-year outlook for Organic Net Revenue growth and Adjusted EPS.
Financial Highlights
50 data points| Revenue | $8.47B |
| Cost of Revenue | $5.33B |
| Gross Profit | $3.14B |
| SG&A Expenses | $1.78B |
| Operating Income | $1.26B |
| Interest Expense | $257.00M |
| Net Income | $1.01B |
| EPS (Basic) | $0.57 |
| EPS (Diluted) | $0.56 |
| Shares Outstanding (Basic) | 1.78B |
| Shares Outstanding (Diluted) | 1.79B |
Key Highlights
- 1Net revenues for Q3 2013 increased by 1.8% to $8.5 billion, and for the first nine months of 2013 by 1.1% to $25.8 billion.
- 2Organic Net Revenues showed strong growth, up 5.3% in Q3 and 4.3% for the nine months, indicating healthy underlying business performance.
- 3Diluted EPS from continuing operations significantly increased by 470% in Q3 and 123.6% for the nine months, benefiting from a substantial $375 million after-tax gain from a Cadbury acquisition-related indemnification resolution.
- 4Operating income saw a substantial increase of 50.6% in Q3 and 10.6% for the nine months, boosted by the indemnification resolution and lower Spin-Off costs.
- 5The company maintained a strong liquidity position, with $1.2 billion in cash from operating activities for the nine months and a new $4.5 billion revolving credit facility.
- 6Share repurchases continued, with $853 million in stock repurchased during the first nine months of the year as part of a $6.0 billion program.
- 7The company experienced headwinds from unfavorable foreign currency movements, particularly the devaluation of the Venezuelan bolivar, impacting net revenues and operating income.