Summary
Mondelez International, Inc. reported its financial results for the quarter and nine months ended September 30, 2016. The company experienced a significant decrease in net revenues and net earnings compared to the prior year, primarily due to the deconsolidation of its Venezuelan operations and the prior year's large gain from the JDE coffee business transactions. Excluding these and other significant items, the company's underlying performance showed signs of growth. Organic Net Revenue saw an increase in both periods, indicating healthy underlying sales growth. Adjusted Operating Income and Adjusted EPS also showed positive growth, especially on a constant currency basis, highlighting the company's efforts in cost management and operational efficiency. Investors should note the impact of ongoing restructuring programs, currency fluctuations, and strategic divestitures and acquisitions on the reported figures. The company is actively managing its debt and capital structure, with recent actions aimed at optimizing its financing.
Financial Highlights
51 data points| Revenue | $6.40B |
| Cost of Revenue | $3.91B |
| Gross Profit | $2.49B |
| SG&A Expenses | $1.55B |
| Operating Income | $702.00M |
| Interest Expense | $129.00M |
| Net Income | $548.00M |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.35 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Net revenues decreased by 6.6% for the third quarter and 14.0% for the first nine months of 2016, largely impacted by the deconsolidation of Venezuelan operations and currency headwinds.
- 2Organic Net Revenue, excluding certain items, increased by 1.1% for the quarter and 1.6% for the nine months, indicating underlying sales growth.
- 3Diluted EPS saw a substantial decrease due to significant one-time items, particularly the prior year's gain from the JDE coffee business transactions.
- 4Adjusted EPS, a non-GAAP measure, increased by 36.8% for the quarter and 22.5% for the nine months, showing improved operational performance.
- 5The company's 2014-2018 Restructuring Program continued, with significant charges incurred in both periods, aimed at reducing operating costs.
- 6Strategic transactions, including the ongoing impact of the JDE coffee business transactions and the acquisition of an interest in Keurig, continue to shape the company's portfolio.
- 7Latin America segment net revenues saw a significant decline, heavily influenced by the deconsolidation of Venezuelan operations and currency impacts.