01—Abstract
Summary
Summary of the 10-Q filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Mondelez International, Inc. (MDLZ) reported its financial results for the third quarter and the first nine months of 2025.
For the third quarter, net revenues increased by 5.9% year-over-year to $9.7 billiona, driven by higher net pricing and favorable currency impacts, partially offset by lower volume/mix. However, operating income saw a significant decrease of 35.5% to $744 million, and net earnings attributable to Mondelēz International fell 12.9% to $743 million. Diluted Earnings Per Share (EPS) decreased by 9.5% to $0.57.
The nine-month period showed a similar trend with net revenues up 4.5% to $28.0 billionb, but operating income declined sharply by 45.2% to $2.6 billion, and net earnings attributable to Mondelēz International dropped 37.7% to $1.8 billion. Diluted EPS for the nine months decreased by 35.4% to $1.37. The company cited higher input costs and unfavorable volume/mix as key detractors from profitability, despite strategic pricing initiatives.
Despite the profit decline, the company continues to invest in growth, including the acquisition of Evirth in China, and maintain a strong liquidity position with a significant share repurchase program in place. Investors should monitor the impact of ongoing macroeconomic uncertainties and elevated commodity costs, particularly cocoa, on future profitability.
02—Key points
Key Highlights
- Net revenues for Q3 2025 increased by 5.9% to $9.7 billion, primarily driven by higher net pricing and favorable currency translation.
- Operating income for Q3 2025 decreased by 35.5% to $744 million due to higher input costs and unfavorable volume/mix.
- Net earnings attributable to Mondelēz International for Q3 2025 decreased by 12.9% to $743 million.
- Diluted EPS for Q3 2025 was $0.57, a decrease of 9.5% compared to the prior year.
- The company completed the acquisition of Evirth (Shanghai) Industrial Co., Ltd. in China during Q4 2024, contributing to revenue growth.
- Elevated commodity costs, particularly cocoa, continue to be a significant factor impacting profitability.
- The company has a remaining share repurchase authorization of approximately $7.2 billion as of September 30, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Mondelez International, Inc. kept $0.08.
- Revenue$9.74B100.0%
- Cost of revenue−$7.13B73.2%
- Gross profit$2.61B26.8%
- Operating costs−$1.87B19.2%
- Operating income$744.0M7.6%
- Interest, other & tax−$1.0M0.0%
- Net income$743.0M7.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 28, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $9.74B$9.20B | +5.9% |
| Cost of Revenue | $7.13B$6.21B | +14.9% |
| Gross Profit | $2.61B$3.00B | −12.9% |
| SG&A Expenses | $1.79B$1.63B | +10.1% |
| Operating Income | $744.00M$1.15B | −35.5% |
| Interest Expense | $157.00M$129.00M | +21.7% |
| Net Income | $743.00M$853.00M | −12.9% |
| EPS (Basic) | $0.57$0.64 | −10.9% |
| EPS (Diluted) | $0.57$0.63 | −9.5% |
| Shares Outstanding (Basic) | 1.29B1.34B | −3.4% |
| Shares Outstanding (Diluted) | 1.30B1.34B | −3.6% |
05—Questions
Frequently Asked Questions
What is the overall financial performance trend for Mondelez International in this reporting period?
Mondelez International experienced revenue growth driven by pricing and currency favorable movements in Q3 2025, but saw a significant decline in operating income and net earnings. This was primarily due to higher input costs and unfavorable volume/mix, which more than offset the benefits of pricing strategies.
What are the main factors impacting the company's profitability?
The primary factors impacting profitability are elevated input costs, particularly for commodities like cocoa, and unfavorable volume/mix, which indicates lower sales volumes or less favorable product combinations. These factors are partially offset by strategic pricing increases.
How is the company managing its capital and shareholder returns?
The company maintains a strong liquidity position and has a significant share repurchase program. As of September 30, 2025, approximately $7.2 billion remained authorized for share repurchases. Dividends also continue to be paid, reflecting a commitment to shareholder returns.
What is the outlook for commodity costs, especially cocoa?
The company expects to continue facing elevated cocoa costs in the near and medium term, although 2026 costs are anticipated to be lower than the current year. These costs are influenced by various external factors including climate, geopolitical events, and regulations.
06—Continue