10-QPeriod: Q1 FY2021

Mondelez International, Inc. Quarterly Report for Q1 Ended Mar 31, 2021

Filed April 28, 2021For Securities:MDLZ

Summary

Mondelez International, Inc. reported strong financial results for the first quarter of 2021, with net revenues increasing by 7.9% to $7.2 billion compared to the prior year. This growth was driven by a 3.8% increase in organic net revenue, reflecting higher net pricing and favorable volume/mix across its developed and emerging markets. Diluted Earnings Per Share (EPS) saw a significant rise of 33.3% to $0.68, bolstered by improved operating performance, favorable currency impacts, and a reduction in outstanding shares. The company also highlighted its strategic focus on accelerating consumer-centric growth and driving operational excellence. The acquisitions of Grenade and Hu Master Holdings in the first quarter of 2021 were noted as strategic moves to expand into premium nutrition and chocolate categories, respectively. Despite ongoing challenges related to the COVID-19 pandemic, particularly in travel retail and out-of-home consumption categories like gum and candy, Mondelez demonstrated resilience and effective management of its supply chain and costs.

Financial Highlights

53 data points
Beta

Revenue

$7.24B

41.0% Gross Margin

Net Income

$961.00M

13.3% Net Margin

EPS (Diluted)

$0.68

Total Assets

$66.35B

Cash & Equivalents

$2.06B

Free Cash Flow

$699.00M

Financial Statements
Beta
Revenue$7.24B
Cost of Revenue$4.27B
Gross Profit$2.97B
SG&A Expenses$1.56B
Operating Income$1.28B
Interest Expense$98.00M
Net Income$961.00M
EPS (Basic)$0.68
EPS (Diluted)$0.68
Shares Outstanding (Basic)1.41B
Shares Outstanding (Diluted)1.42B

Key Highlights

  • 1Net revenues grew 7.9% to $7.2 billion, with organic net revenue up 3.8%.
  • 2Diluted EPS increased 33.3% to $0.68.
  • 3Acquisitions of Grenade and Hu Master Holdings are expected to strengthen market position in premium nutrition and chocolate.
  • 4Despite COVID-19 impacts on travel retail and gum/candy, the company reported broad-based revenue growth.
  • 5Strong operational execution led to a significant increase in operating income, up 49.9% to $1.3 billion.
  • 6The company maintained robust liquidity with $2.0 billion in cash and cash equivalents at quarter-end.

Frequently Asked Questions

The COVID-19 pandemic continued to influence results. While increased in-home consumption boosted demand for snack categories like biscuits and chocolate, it negatively impacted out-of-home consumption categories such as gum and candy, as well as the world travel retail business. Overall, the company managed supply chain disruptions effectively and saw a return to strong revenue growth in many emerging markets.

Revenue growth was driven by a 3.8% increase in organic net revenue, primarily from higher net pricing and favorable volume/mix. Favorable currency translation and incremental revenue from recent acquisitions also contributed to the overall 7.9% net revenue increase.

The company is continuing to execute its 'Simplify to Grow' program, focusing on reducing operating costs in its supply chain and overhead. Despite increased input costs for raw materials and logistics, they achieved higher net pricing, favorable volume/mix, and cost savings in manufacturing and SG&A, leading to a significant increase in operating income.

Mondelez completed two strategic acquisitions in Q1 2021 (Grenade and Hu Master Holdings) to enhance its portfolio. The company continues to have significant share repurchase authorization and plans to fund capital expenditures and debt maturities through operating cash flow and financing activities, indicating a balanced approach to capital allocation.