Summary
Mondelez International, Inc. (MDLZ) reported its first-quarter 2017 results, showing a slight decline in net revenues but an increase in earnings per share. Net revenues decreased by 0.6% to $6.4 billion, largely due to unfavorable currency exchange rates which impacted reported figures. However, the company achieved an organic net revenue growth of 0.6%, indicating underlying business strength driven by higher net pricing across most categories, particularly in Latin America and AMEA, partially offset by unfavorable volume/mix in certain regions. Despite the revenue headwinds, operating income saw a significant increase of 16.3% to $840 million, and diluted EPS attributable to Mondeléz International rose by 17.1% to $0.41. This improvement was driven by strong pricing actions, cost-saving initiatives including lower selling, general, and administrative expenses, and favorable one-time events such as a benefit from a Cadbury tax matter settlement. Management highlighted continued efforts to optimize the cost structure and accelerate core snack businesses, supported by ongoing restructuring programs expected to conclude by year-end 2018.
Financial Highlights
51 data points| Revenue | $6.41B |
| Cost of Revenue | $3.90B |
| Gross Profit | $2.52B |
| SG&A Expenses | $1.48B |
| Operating Income | $825.00M |
| Interest Expense | $103.00M |
| Net Income | $654.00M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 1.53B |
| Shares Outstanding (Diluted) | 1.55B |
Key Highlights
- 1Net revenues declined 0.6% to $6.414 billion, primarily impacted by unfavorable currency translation.
- 2Organic Net Revenue grew 0.6% to $6.494 billion, driven by higher net pricing, partially offset by unfavorable volume/mix.
- 3Operating income increased 16.3% to $840 million, reflecting improved pricing and cost management.
- 4Diluted Earnings Per Share (EPS) attributable to Mondeléz International increased 17.1% to $0.41.
- 5Adjusted EPS (a non-GAAP measure) increased 3.9% to $0.53, demonstrating underlying operational performance.
- 6The company continues to execute its 2014-2018 Restructuring Program, which aims to reduce operating costs.
- 7Short-term borrowings increased significantly to $4.25 billion from $2.53 billion at year-end 2016, partly to finance debt maturities and share repurchases.