Summary
Mondelēz International, Inc. (MDLZ) filed an 8-K on October 10, 2023, to disclose the retrospective impact of its JDE Peet's (JDEP) share sale on its non-GAAP financial results. Due to reporting JDEP's results with a one-quarter lag, the effect of the April 3, 2023, sale of approximately 1.6% of its stake will be reflected in non-GAAP figures starting from the third quarter of 2023. The company is treating this partial sale as a divestiture for non-GAAP reporting purposes. This adjustment involves removing the equity method investment net earnings related to this divestiture from historical non-GAAP Adjusted EPS calculations. This ensures that comparisons of historical operating results and underlying trends are more transparent and aligned with how the company evaluates its business. Importantly, Mondelēz's U.S. GAAP financial statements remain unaffected by this change in non-GAAP presentation. Investors should note that the recast non-GAAP figures are for comparative purposes and do not amend prior filings.
Key Highlights
- 1Mondelēz is retrospectively adjusting its non-GAAP financial results to account for the sale of JDE Peet's (JDEP) shares.
- 2The sale of approximately 1.6% of its JDEP stake on April 3, 2023, is being treated as a divestiture for non-GAAP reporting.
- 3The impact of this sale will affect non-GAAP financial results starting from Q3 2023, due to JDEP's one-quarter reporting lag.
- 4Historical non-GAAP Adjusted EPS will be recast to exclude equity method investment net earnings from the divested JDEP shares.
- 5U.S. GAAP financial results will not be changed by this non-GAAP presentation adjustment.
- 6The company aims to improve comparability of historical operating results and provide greater transparency on business evaluation.
- 7Recast financial information for 2021, 2022, and year-to-date 2023 is provided in Exhibit 99.1.