What was the main driver behind the decline in reported net revenues?

The primary driver for the decline in reported net revenues was unfavorable currency translation effects. As the U.S. dollar strengthened against many international currencies in which Mondelez operates, the translated value of foreign revenues decreased.

How did the company's underlying business perform, excluding currency and other one-time items?

The underlying business performed well, as indicated by the increase in Organic Net Revenue (excluding currency, acquisitions, and divestitures) and Adjusted EPS (a non-GAAP measure excluding special items). Organic Net Revenue grew 4.3% in Q2 and 4.0% in the first half, driven by pricing and volume/mix in its Power Brands and emerging markets. Adjusted EPS also showed significant growth, up 17.5% in Q2 and 11.4% in the first half.

What are the key implications of the divestiture of the global coffee business?

The divestiture of the global coffee business, completed on July 2, 2015, is a significant strategic move to focus the company more on its global snacking categories (biscuits, chocolate, gum, candy). While historical coffee results will continue to be reflected through June 30, 2015, the company will report its equity earnings from its stake in the new entity, Jacobs Douwe Egberts (JDE), going forward, which is expected to contribute to earnings.

How is the company managing its costs and improving profitability?

Mondelez is actively managing costs through restructuring programs (like the 2014-2018 Restructuring Program), supply chain reinvention, overhead streamlining, and productivity initiatives. These efforts are reflected in the growth of Adjusted Operating Income, which excludes these restructuring and other specific charges, showing an improvement despite reported declines.

MDLZ 10-Q Quarterly Report Q2 FY2015 — Revenue, Net Income, EPS

Summary

Mondelez International, Inc. (MDLZ) reported second quarter and first half 2015 results showing a decline in reported net revenues primarily due to unfavorable currency translation effects, with net revenues falling 9.2% in the second quarter and 9.7% for the first half. Despite this top-line pressure, the company demonstrated resilience in its organic net revenue growth, which increased by 4.3% in Q2 and 4.0% in the first half, driven by its Power Brands and strong performance in emerging markets. Diluted EPS saw a significant decline of 30.6% year-over-year in the second quarter to $0.25, and a 4.3% decrease for the first half to $0.44, impacted by various one-time items including restructuring charges and costs associated with the coffee business divestiture. Adjusted EPS, a non-GAAP measure that excludes these special items, showed a more positive trend, increasing by 17.5% in the second quarter to $0.47 and by 11.4% for the first half to $0.88. The company also announced an increase in its quarterly dividend and a significant expansion of its share repurchase program, signaling confidence in its future financial performance and commitment to returning capital to shareholders. The divestiture of its global coffee business was completed on July 2, 2015, a significant strategic move that will reshape the company's portfolio towards snacks.

Financial Highlights

52 data points

Beta

Revenue

$7.66B

0.4% Gross Margin

Net Income

$406.00M

0.1% Net Margin

EPS (Diluted)

$0.25

Total Assets

$65.12B

Free Cash Flow

$502.00M

Financial Statements

Beta

Revenue	$7.66B
Cost of Revenue	$4.59B
Gross Profit	$3.07B
SG&A Expenses	$1.96B
Operating Income	$841.00M
Interest Expense	$147.00M
Net Income	$406.00M
EPS (Basic)	$0.25
EPS (Diluted)	$0.25
Shares Outstanding (Basic)	1.63B
Shares Outstanding (Diluted)	1.64B

Key Highlights

1Reported Net Revenues declined by 9.2% in Q2 2015 and 9.7% in the first half of 2015, largely due to unfavorable currency translation effects from a strengthening U.S. dollar.
2Organic Net Revenue, a non-GAAP measure excluding currency impacts, grew by 4.3% in Q2 and 4.0% in the first half, driven by pricing actions and strength in emerging markets and Power Brands.
3Diluted EPS attributable to Mondelēz International decreased by 30.6% in Q2 to $0.25 and by 4.3% in the first half to $0.44, affected by restructuring charges and coffee business transaction costs.
4Adjusted EPS (non-GAAP) increased by 17.5% in Q2 to $0.47 and by 11.4% in the first half to $0.88, demonstrating underlying operational improvements.
5The company completed the divestiture of its global coffee business to Jacobs Douwe Egberts (JDE) on July 2, 2015, a major strategic transaction.
6Operating income saw a decline in reported terms, but Adjusted Operating Income (non-GAAP) increased by 10.2% in Q2 and 6.0% in the first half, reflecting improved operational performance.
7Mondelez announced a 13% increase in its quarterly dividend and a substantial $6.0 billion increase to its share repurchase authorization, signaling a commitment to shareholder returns.

Mondelez International, Inc. Quarterly Report for Q2 Ended Jun 30, 2015

Summary

Financial Highlights

Key Highlights

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