What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to disclose updated non-GAAP financial information following the divestiture of Mondelez's Kraft-branded cheese business in the Middle East and Africa. The company is retrospectively adjusting its non-GAAP metrics to remove the impact of this divested business for better comparability of its ongoing operations.

How will this divestiture affect Mondelez's reported financials?

Mondelez's U.S. GAAP financial results will include the divested cheese business up to the May 28, 2019, closing date. However, its non-GAAP financial measures, which are used to evaluate ongoing performance, will exclude this business entirely for all periods presented, both historical and future. This means that metrics like organic net revenue and adjusted EPS will reflect the performance of the continuing business more accurately.

What specific non-GAAP financial measures have been revised?

Several key non-GAAP financial measures have been revised, including Organic Net Revenue Growth, Adjusted Gross Profit (and margin), Adjusted Operating Income (and margin), and Adjusted Earnings Per Share (EPS). The company believes these revisions offer a more transparent view of the underlying trends and operational performance of its continuing business.

Does this filing provide the financial impact of the divestiture sale itself?

This filing focuses on the adjustment of non-GAAP financial measures to reflect the divestiture's exclusion from ongoing performance metrics. While it confirms the sale of the Kraft-branded cheese business in the Middle East and Africa, it does not detail the financial terms or the specific gain/loss recognized from the sale itself. That information would typically be found in other SEC filings, such as the company's quarterly or annual reports.

MDLZ 8-K: Regulation FD

Summary

This 8-K filing from Mondelez International, Inc. (MDLZ) primarily provides updated non-GAAP financial information following the divestiture of its Kraft-branded cheese business in the Middle East and Africa on May 28, 2019. The company is retrospectively adjusting its non-GAAP financial measures to exclude the results of this divested operation for all historical periods presented, ensuring consistency in how it evaluates underlying business performance. Investors should note that while U.S. GAAP results will continue to reflect the divested business up to the closing date, the company's forward-looking non-GAAP reporting will exclude these operations entirely. This adjustment aims to provide a clearer view of the ongoing business's organic growth and profitability by removing the impact of past divestitures from key performance indicators like organic net revenue growth, adjusted gross profit margin, adjusted operating income margin, and adjusted EPS. The filing includes revised non-GAAP financial data for fiscal years 2016 through 2018, and quarterly data for 2017, 2018, and the first quarter of 2019, allowing for more accurate trend analysis of the continuing operations.

Key Highlights

1Mondelez International divested its Kraft-branded cheese business in the Middle East and Africa to Arla Foods on May 28, 2019.
2The company is updating its non-GAAP financial measures to exclude the divested cheese business from all historical and future reporting periods.
3U.S. GAAP financial statements will continue to include the divested business's results up to the sale date.
4This adjustment aims to provide a clearer view of the performance of Mondelez's ongoing operations.
5Revised non-GAAP financial data is provided for fiscal years 2016-2018 and quarterly periods in 2017, 2018, and Q1 2019.
6Key non-GAAP metrics affected include Organic Net Revenue Growth, Adjusted Gross Profit, Adjusted Operating Income, and Adjusted EPS.

Mondelez International, Inc. 8-K Report, Regulation FD Disclosure (Jul 11, 2019)

Summary

Key Highlights

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