Summary
Mondelez International, Inc. (MDLZ) reported its second-quarter and first-half 2019 financial results, showing a net revenue decrease of 0.8% to $6.1 billion for the quarter and 2.2% to $12.6 billion for the first six months, primarily impacted by unfavorable currency translations and a divestiture of its cheese business in the Middle East and Africa. However, the company demonstrated resilience with an Organic Net Revenue increase of 4.6% for the quarter and 4.1% for the first six months, driven by higher net pricing and favorable volume/mix. Diluted Earnings Per Share (EPS) attributable to Mondelēz International saw a significant increase, up 161.9% to $0.55 for the quarter and 29.7% to $1.18 for the first six months, largely due to favorable year-over-year comparisons including lapping prior-year impacts and cost reductions. Adjusted EPS, a non-GAAP measure, also showed positive growth, increasing by 3.6% to $0.57 for the quarter and 4.3% to $1.22 for the first six months, with constant currency growth even stronger at 9.1% and 12.0% respectively. This highlights the company's focus on underlying operational performance despite macro-economic headwinds. The company continues to manage its costs effectively through its Simplify to Grow program and maintains a strong liquidity position, expecting sufficient resources to cover its obligations. Investors should note the ongoing impact of currency fluctuations and the company's strategic initiatives to drive profitable growth.
Financial Highlights
55 data points| Revenue | $6.06B |
| Cost of Revenue | $3.59B |
| Gross Profit | $2.47B |
| SG&A Expenses | $1.43B |
| Operating Income | $1.02B |
| Interest Expense | $127.00M |
| Net Income | $803.00M |
| EPS (Basic) | $0.56 |
| EPS (Diluted) | $0.55 |
| Shares Outstanding (Basic) | 1.45B |
| Shares Outstanding (Diluted) | 1.46B |
Key Highlights
- 1Net revenues decreased slightly (0.8% for Q2, 2.2% YTD) due to unfavorable currency and a divestiture, but Organic Net Revenue showed solid growth (4.6% for Q2, 4.1% YTD) driven by pricing and volume/mix.
- 2Diluted EPS attributable to Mondelēz International significantly increased (161.9% for Q2, 29.7% YTD) driven by lapping prior-year unfavorable items and cost management.
- 3Adjusted EPS (non-GAAP) grew 3.6% for Q2 and 4.3% YTD, with constant currency Adjusted EPS showing stronger growth of 9.1% for Q2 and 12.0% YTD, indicating healthy underlying performance.
- 4The company completed the divestiture of its Middle East and Africa cheese business, generating cash proceeds and a net gain.
- 5Operating income increased substantially (113.1% for Q2, 20.9% YTD) due to a combination of factors including lapping prior-year charges and cost efficiencies.
- 6The Simplify to Grow program continues to be a focus, contributing to cost reductions and operational improvements.
- 7Mondelez International maintains a strong liquidity position, expecting sufficient cash flow to meet its obligations, and continues its share repurchase program and quarterly dividend payments.