What caused the significant drop in Diluted EPS for the quarter?

The substantial decrease in Diluted EPS was primarily driven by a $494 million loss on debt extinguishment and related expenses incurred from a debt tender offer, as well as a $142 million currency remeasurement loss due to currency exchange developments in Venezuela. These items are considered non-recurring or exceptional.

How is the company performing on an operational basis, excluding these significant charges?

Excluding the impact of debt extinguishment, Venezuela currency remeasurement, and other one-time items, the company's Adjusted EPS increased by 11.4% to $0.39. Organic net revenue also grew by 2.8%, suggesting that the core business operations are performing well.

What is the company's outlook for the remainder of 2014?

Mondelez expects Organic Net Revenue growth to be in line with global category growth of approximately 3%. They also anticipate low double-digit growth in Adjusted Operating Income at constant currency, leading to an Adjusted EPS range of $1.73 to $1.78, representing double-digit growth on a constant currency basis.

Are there any significant restructuring or strategic initiatives underway?

Yes, the company announced a new $3.5 billion restructuring program approved in May 2014, aimed at reducing operating costs and generating at least $1.5 billion in annualized savings by 2018. Additionally, they announced an agreement to combine their coffee business with D.E Master Blenders 1753 B.V., which is expected to result in approximately $5 billion in after-tax cash proceeds and a 49% equity interest in the new combined company.

MDLZ 10-Q Quarterly Report Q1 FY2014 — Revenue, Net Income, EPS

Summary

Mondelez International, Inc. reported a decrease in net revenues of 1.2% to $8.64 billion for the first quarter of 2014 compared to the same period in 2013. However, organic net revenue saw a positive increase of 2.8%, indicating growth in underlying business operations. Diluted Earnings Per Share (EPS) significantly decreased by 70.0% to $0.09, largely impacted by a substantial $494 million loss on debt extinguishment and related expenses, as well as a $142 million currency remeasurement loss in Venezuela. Despite the headline drop in EPS, Adjusted EPS, which excludes these one-time or non-recurring items, increased by 11.4% to $0.39. The company highlighted strong pricing power across several segments and a focus on cost management. Key financial activities during the quarter included issuing $3 billion in new debt and repurchasing $1.6 billion of existing debt, alongside a $492 million share repurchase. Looking ahead, Mondelez reiterated its commitment to organic net revenue growth, adjusted operating income growth, and double-digit adjusted EPS growth on a constant currency basis.

Financial Highlights

50 data points

Beta

Revenue

$8.64B

0.4% Gross Margin

Net Income

$163.00M

0.0% Net Margin

EPS (Diluted)

$0.09

Total Assets

$72.96B

Free Cash Flow

-$903.00M

Financial Statements

Beta

Revenue	$8.64B
Cost of Revenue	$5.44B
Gross Profit	$3.20B
SG&A Expenses	$2.27B
Operating Income	$843.00M
Interest Expense	$202.00M
Net Income	$163.00M
EPS (Basic)	$0.10
EPS (Diluted)	$0.09
Shares Outstanding (Basic)	1.70B
Shares Outstanding (Diluted)	1.72B

Key Highlights

1Net revenues decreased by 1.2% to $8.64 billion, but organic net revenue grew by 2.8%, indicating underlying business strength.
2Diluted EPS saw a significant decline of 70.0% to $0.09, primarily due to a large $494 million loss on debt extinguishment and a $142 million currency remeasurement loss in Venezuela.
3Adjusted EPS, excluding these significant items, increased by 11.4% to $0.39, demonstrating resilient operational performance.
4The company actively managed its debt structure by issuing $3.0 billion in new notes and retiring $1.6 billion of higher-coupon debt.
5Share repurchases continued, with $492 million spent in the quarter, demonstrating a commitment to returning capital to shareholders.
6Significant currency headwinds were noted, particularly from the Venezuelan bolivar devaluation and the strengthening U.S. dollar against several emerging market currencies.
7Mondelez announced plans for a significant $3.5 billion restructuring program aimed at reducing operating costs by $1.5 billion annually by 2018.

Mondelez International, Inc. Quarterly Report for Q1 Ended Mar 31, 2014

Summary

Financial Highlights

Key Highlights

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