Summary
Mondelez International reported its second-quarter 2022 financial results, demonstrating resilience and strategic execution amidst a challenging macroeconomic environment. The company achieved robust net revenue growth of 9.5%, driven by a combination of higher pricing and favorable volume/mix, reflecting strong consumer demand for its snacking products across both developed and emerging markets. Despite significant headwinds from unfavorable currency translation and increased input costs, Mondelez International managed to grow its Adjusted Operating Income by 2.3% and Adjusted EPS by 1.5% (9.1% on a constant currency basis). The company also announced two significant acquisitions, Clif Bar & Company and Ricolino, underscoring its commitment to expanding its global snacking leadership. The war in Ukraine and ongoing inflationary pressures remain key concerns, impacting operational costs and supply chains, though the company has taken steps to mitigate these effects.
Financial Highlights
53 data points| Revenue | $7.27B |
| Cost of Revenue | $4.63B |
| Gross Profit | $2.64B |
| SG&A Expenses | $1.68B |
| Operating Income | $927.00M |
| Interest Expense | $89.00M |
| Net Income | $747.00M |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 1.38B |
| Shares Outstanding (Diluted) | 1.39B |
Key Highlights
- 1Net revenues increased by 9.5% to $7.3 billion for the second quarter of 2022, and by 8.3% to $15.0 billion for the first six months of 2022, primarily driven by higher net pricing and favorable volume/mix.
- 2Organic Net Revenue, a non-GAAP measure, grew by 13.1% in Q2 2022 and 10.7% in the first six months of 2022, indicating strong underlying business performance.
- 3Diluted EPS attributable to Mondelēz International decreased by 28.9% to $0.54 in Q2 2022 and by 20.1% to $1.15 in the first six months of 2022, impacted by several one-time items and prior-year gains.
- 4Adjusted EPS, a non-GAAP measure, increased by 1.5% to $0.67 in Q2 2022 and by 3.4% to $1.50 in the first six months of 2022. On a constant currency basis, Adjusted EPS grew by 9.1% in Q2 and 11.7% in the first six months.
- 5The company announced agreements to acquire Clif Bar & Company for approximately $2.9 billion and Ricolino for approximately $1.3 billion, aiming to further strengthen its global snacking portfolio.
- 6Operating income was impacted by various items, including incremental costs due to the war in Ukraine, acquisition integration costs, and mark-to-market losses on derivatives, despite higher net pricing and favorable volume/mix.
- 7Cash provided by operating activities increased to $1.97 billion for the six months ended June 30, 2022, up from $1.79 billion in the prior year, demonstrating solid cash generation.