01—Abstract
Summary
Summary of the 10-Q filed April 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Mondelez International, Inc. reported a robust increase in net revenues for the first quarter of 2026, reaching $10.1 billiona, an 8.2% rise compared to the prior year.
This growth was primarily driven by higher net pricing and favorable currency movements, although partially offset by a less favorable volume/mix and the lapping of prior-year divestiture revenue. The company's focus on strategic priorities, including accelerating consumer-centric growth and driving operational excellence, continues to shape its performance amidst a dynamic macroeconomic environment. Despite an increase in reported net earnings and diluted EPS, Adjusted EPS saw a decline of 9.5%b year-over-year (14.9% on a constant currency basis).
This decrease was attributed to operating declines, higher income taxes, and increased restructuring and ERP system implementation costs. Management highlights ongoing efforts to mitigate inflationary pressures and supply chain challenges, while navigating trade and regulatory uncertainties, and geopolitical developments in regions like the Middle East and Ukraine. The company reiterates its belief in sufficient liquidity from operations and financing to meet its obligations and strategic investments.
02—Key points
Key Highlights
- Net revenues increased by 8.2% to $10.1 billion, driven by pricing and favorable currency impacts.
- Organic Net Revenue grew by 3.0%, primarily due to higher net pricing, although volume/mix was unfavorable.
- Reported Net Earnings increased significantly by 39.3% to $560 million, with Diluted EPS rising to $0.44.
- Adjusted EPS decreased by 9.5% to $0.67, reflecting operating challenges and increased costs from restructuring and ERP implementation.
- Segment operating income in Europe saw a significant decrease of 36.4%, mainly due to higher raw material costs and restructuring charges.
- North America segment operating income declined by 20.8%, driven by higher raw material costs and ERP implementation expenses.
- The company maintained a debt-to-capitalization ratio of 0.45 and has approximately $6.7 billion in remaining share repurchase capacity as of March 31, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Mondelez International, Inc. kept $0.06.
- Revenue$10.08B100.0%
- Cost of revenue−$7.28B72.2%
- Gross profit$2.80B27.8%
- Operating costs−$2.00B19.8%
- Operating income$808.0M8.0%
- Interest, other & tax−$248.0M2.5%
- Net income$560.0M5.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 28, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $10.08B$9.31B | +8.2% |
| Cost of Revenue | $7.28B$6.88B | +5.7% |
| Gross Profit | $2.80B$2.43B | +15.3% |
| SG&A Expenses | $1.92B$1.71B | +12.0% |
| Operating Income | $808.00M$680.00M | +18.8% |
| Interest Expense | $148.00M$137.00M | +8.0% |
| Net Income | $560.00M$402.00M | +39.3% |
| EPS (Basic) | $0.44$0.31 | +41.9% |
| EPS (Diluted) | $0.44$0.31 | +41.9% |
| Shares Outstanding (Basic) | 1.28B1.30B | −1.4% |
| Shares Outstanding (Diluted) | 1.29B1.30B | −1.5% |
05—Questions
Frequently Asked Questions
What drove the increase in net revenues for the first quarter of 2026?
Net revenues increased by 8.2% to $10.1 billion primarily due to higher net pricing and favorable currency-related items. These factors were partially offset by unfavorable volume/mix and lapping prior-year net revenue from a divestiture. The company implemented pricing actions across all regions in response to input cost increases.
Why did Adjusted EPS decrease despite higher reported net earnings?
Adjusted EPS decreased by 9.5% to $0.67, and by 14.9% on a constant currency basis. This decline is attributed to factors such as operating declines, higher income taxes, increased restructuring charges, and higher costs associated with the ERP System Implementation program. These factors outweighed improvements in other areas.
What are the key challenges and risks the company is currently facing?
Mondelez is navigating significant market and geopolitical uncertainty, including fluctuating consumer demand, inflationary pressures, supply constraints, trade and regulatory uncertainty, and exchange rate volatility. Specific concerns highlighted include higher operating costs, pricing elasticity impacts on consumer demand in certain regions, geopolitical developments in the Middle East and Ukraine, and supply chain disruptions for key commodities like cocoa.
How is the company managing its liquidity and capital resources?
The company believes it has sufficient liquidity from cash from operations, revolving credit facilities, and debt financing to meet its obligations. It expects capital expenditures of up to $1.4 billion in 2026, funded by cash from operations. The company also has approximately $6.7 billion in remaining share repurchase capacity.
06—Continue