Summary
Mondelēz International, Inc. (MDLZ) reported its third-quarter and year-to-date results for the period ending September 29, 2022. The company demonstrated revenue growth, driven by a combination of higher net pricing and favorable volume/mix, with Organic Net Revenue increasing by 12.1% in Q3 and 11.2% year-to-date. This growth was achieved despite significant inflationary pressures, supply chain disruptions, and the ongoing impact of the war in Ukraine, which together increased operating costs. Despite top-line growth, net earnings attributable to Mondelēz International and diluted EPS saw a substantial decrease year-over-year for both the quarter and year-to-date periods. This decline was primarily attributed to a significant increase in acquisition-related costs (including integration costs and contingent consideration adjustments), intangible asset impairment charges, and other one-time expenses. However, Adjusted EPS, which excludes these items, showed an increase, indicating resilience in the core operational performance.
Financial Highlights
53 data points| Revenue | $7.76B |
| Cost of Revenue | $5.15B |
| Gross Profit | $2.61B |
| SG&A Expenses | $1.88B |
| Operating Income | $679.00M |
| Interest Expense | $114.00M |
| Net Income | $532.00M |
| EPS (Basic) | $0.39 |
| EPS (Diluted) | $0.39 |
| Shares Outstanding (Basic) | 1.37B |
| Shares Outstanding (Diluted) | 1.38B |
Key Highlights
- 1Net revenues increased by 8.1% to $7.8 billion in Q3 2022, and by 8.3% to $22.8 billion for the nine months ended September 30, 2022.
- 2Organic Net Revenue grew by 12.1% in Q3 and 11.2% year-to-date, driven by higher net pricing and favorable volume/mix.
- 3Diluted EPS attributable to Mondelēz International decreased significantly by 56.2% in Q3 and 33.9% year-to-date, primarily due to elevated acquisition-related costs and other one-time charges.
- 4Adjusted EPS, a non-GAAP measure, increased by 5.7% in Q3 and 3.7% year-to-date, demonstrating underlying operational strength.
- 5The company completed two significant acquisitions: Clif Bar & Company for $2.9 billion and Ricolino for $1.3 billion (subsequent to the reporting period).
- 6The war in Ukraine continued to impact operations, with the company recording $143 million in charges in Q1 2022, though partial reversals occurred in Q2 and Q3.
- 7Increased input costs, including raw materials and transportation, were a significant factor affecting operating income, partially offset by pricing actions.