Summary
Mondelez International, Inc. reported first-quarter 2024 results showing a 1.4% increase in net revenues to $9.3 billion, driven by higher net pricing and a short-term distributor agreement. Organic Net Revenue, a key non-GAAP metric, grew 4.2%, indicating underlying business growth. However, diluted Earnings Per Share (EPS) saw a significant decline of 31.6% to $1.04, primarily due to a substantial impairment charge on its JDE Peet's investment, along with lapping prior-year gains from marketable securities and equity method transactions. Despite the decrease in reported EPS, Adjusted EPS, which excludes one-time items and accounting adjustments, increased by 10.5% to $0.95 (16.3% on a constant currency basis), reflecting improved operational performance. The company continues to navigate macroeconomic uncertainties, including inflationary pressures and currency volatility, particularly the high cocoa costs, but maintains a positive outlook on driving long-term growth through its strategic priorities, with a continued focus on operational excellence and sustainable snacking.
Financial Highlights
54 data points| Revenue | $9.29B |
| Cost of Revenue | $4.54B |
| Gross Profit | $4.75B |
| SG&A Expenses | $1.94B |
| Operating Income | $2.73B |
| Interest Expense | $122.00M |
| Net Income | $1.41B |
| EPS (Basic) | $1.05 |
| EPS (Diluted) | $1.04 |
| Shares Outstanding (Basic) | 1.35B |
| Shares Outstanding (Diluted) | 1.35B |
Key Highlights
- 1Net revenues increased 1.4% to $9.3 billion, while Organic Net Revenue grew 4.2% due to higher net pricing.
- 2Diluted EPS decreased 31.6% to $1.04, largely impacted by a $665 million impairment charge on the JDE Peet's investment and the prior year's significant gains from marketable securities.
- 3Adjusted EPS increased 10.5% to $0.95, demonstrating underlying operational strength, and grew 16.3% on a constant currency basis.
- 4Operating income significantly increased by 81.2% to $2.7 billion, driven by a favorable year-over-year change in mark-to-market hedging gains and improved Adjusted Operating Income.
- 5The company is experiencing significant increases in cocoa costs, with market prices 283% higher year-over-year, posing a potential risk to profitability if not fully offset by pricing or hedging.
- 6Cash provided by operating activities increased to $1.32 billion from $1.12 billion in the prior year, indicating improved cash generation.
- 7Mondelez continues to execute its share repurchase program, repurchasing approximately $563 million of common stock in the quarter, with approximately $3.9 billion remaining authorization.