Summary
Mondelez International, Inc. reported net revenues of $6.7 billion for the first quarter ended March 31, 2020, a 2.6% increase year-over-year, driven by strong demand in developed markets, particularly North America, as consumers stocked up due to the COVID-19 pandemic. Organic Net Revenue grew by 6.4%. However, diluted Earnings Per Share (EPS) decreased by 17.5% to $0.52, primarily due to unfavorable mark-to-market impacts from derivatives, a loss on an interest rate swap, and currency translation headwinds. The company's liquidity position remains strong, with $1.9 billion in cash and cash equivalents and substantial available borrowing capacity under its credit facilities. Mondelez took proactive steps in response to COVID-19, including increasing cash on hand and securing additional credit facilities. The company is actively managing supply chain and operational impacts, while prioritizing employee safety and community support. Despite the challenges presented by the pandemic, Mondelez is focused on its long-term strategy. The acquisition of Give & Go for approximately $1.2 billion was completed shortly after the quarter's end, signaling continued strategic growth initiatives. While the near-term outlook is subject to COVID-19 related uncertainties, the company is working to mitigate impacts and maintain essential product supply.
Financial Highlights
54 data points| Revenue | $6.71B |
| Cost of Revenue | $4.26B |
| Gross Profit | $2.45B |
| SG&A Expenses | $1.54B |
| Operating Income | $856.00M |
| Interest Expense | $110.00M |
| Net Income | $736.00M |
| EPS (Basic) | $0.51 |
| EPS (Diluted) | $0.51 |
| Shares Outstanding (Basic) | 1.43B |
| Shares Outstanding (Diluted) | 1.45B |
Key Highlights
- 1Net revenues increased 2.6% to $6.7 billion, with Organic Net Revenue growing 6.4%, driven by increased consumer demand in developed markets due to COVID-19.
- 2Diluted EPS decreased 17.5% to $0.52, impacted by derivative mark-to-market losses and currency headwinds.
- 3The company maintained a strong liquidity position with $1.9 billion in cash and significant credit facility availability.
- 4Mondelez proactively managed the COVID-19 impact by increasing cash reserves and securing additional credit.
- 5A $1.2 billion acquisition of Give & Go was completed shortly after the quarter's end, reflecting ongoing strategic expansion.
- 6The company experienced increased demand in developed markets but saw negative impacts in some emerging markets and travel retail/foodservice segments due to lockdowns.
- 7Supply chain and operations experienced some temporary disruptions but were not materially impacted for the quarter.
- 8Share repurchases were suspended in March 2020 as a precautionary measure.