10-QPeriod: Q2 FY2023

Mondelez International, Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Filed July 27, 2023For Securities:MDLZ

Summary

Mondelez International, Inc. (MDLZ) reported strong financial results for the second quarter and first six months of 2023, demonstrating resilience amidst ongoing macroeconomic uncertainties. Net revenues saw a significant increase, driven by robust pricing actions and contributions from recent acquisitions, partially offset by unfavorable currency movements. The company continues to focus on its strategic priorities of accelerating consumer-centric growth and driving operational excellence. Profitability metrics also showed improvement, with operating income and earnings per share (EPS) increasing year-over-year. The company highlighted the strength of its organic net revenue growth, reflecting sustained demand across its diverse snack portfolio. Despite inflationary pressures and supply chain challenges, Mondelez has effectively managed costs and implemented pricing strategies to maintain profitability. The company also provided an updated outlook, reaffirming its commitment to long-term value creation for shareholders.

Financial Highlights

54 data points
Beta

Revenue

$8.51B

39.4% Gross Margin

Net Income

$944.00M

11.1% Net Margin

EPS (Diluted)

$0.69

Total Assets

$72.03B

Cash & Equivalents

$1.55B

Free Cash Flow

$578.00M

Financial Statements
Beta
Revenue$8.51B
Cost of Revenue$5.15B
Gross Profit$3.35B
SG&A Expenses$1.87B
Operating Income$1.43B
Interest Expense$145.00M
Net Income$944.00M
EPS (Basic)$0.69
EPS (Diluted)$0.69
Shares Outstanding (Basic)1.36B
Shares Outstanding (Diluted)1.37B

Key Highlights

  • 1Net revenues increased by 17.0% to $8.5 billion for the second quarter of 2023 and 17.5% to $17.7 billion for the first six months of 2023, year-over-year.
  • 2Organic Net Revenue (a non-GAAP measure) grew 15.8% in Q2 and 17.7% in the first six months, driven by higher net pricing.
  • 3Diluted EPS attributable to Mondelēz International rose 27.8% to $0.69 in Q2 and 91.3% to $2.20 in the first six months.
  • 4Adjusted EPS (a non-GAAP measure) increased 16.9% to $0.76 in Q2 and 13.0% to $1.65 in the first six months.
  • 5The company completed the acquisition of Clif Bar & Company and Ricolino in 2022, with these acquisitions contributing incremental net revenues in the current period.
  • 6Mondelez is actively managing supply chain challenges and inflationary pressures through pricing strategies and cost control measures.
  • 7The company declared a quarterly cash dividend of $0.425 per share, an increase of 10% from the previous quarter.

Frequently Asked Questions

Net revenue growth in Q2 2023 was primarily driven by higher net pricing, incremental net revenues from the acquisitions of Clif Bar and Ricolino, and favorable volume/mix in emerging markets, partially offset by unfavorable currency translation and the impact of divestitures.

The company is actively managing these challenges through higher net pricing, productivity improvements, cost control measures, and supply chain optimization. They are also leveraging their broad portfolio and pricing power to mitigate the impact of increased input costs.

The company's outlook for profitability remains strong, supported by continued focus on driving organic net revenue growth, managing costs effectively, and benefiting from recent acquisitions. They expect to continue delivering profitable growth and shareholder value.

These acquisitions contributed significantly to net revenue growth, with Clif Bar adding $240 million and Ricolino adding $137 million in incremental net revenues in the second quarter of 2023. They also positively impacted operating income and Adjusted EPS.