Snacks giant Mondelez International Inc MDLZ shares are trading lower in premarket on Wednesday.The company reported fourth-quarter sales growth of 3.1% year-on-year to $9.60 billion, missing the analyst consensus estimate of $9.64 billion.Adjusted EPS of $0.65 also missed the consensus estimate of $0.66.Revenues in Asia, Middle East & Africa surged 9.9% whereas Latin America plunged 7.2%. Revenue from Europe and North America increased 5.8% and 0.1% respectively.Gross profit for the quarter climbed 6.9% to ...

Q4 & FY 2024 RESULTS February 4, 2025 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws. Words, and variations of words, such as "will," "may," "expect," "would," "could," "might," "intend," "plan," "believe," "likely," "estimate," "anticipate," "objective," "predict," "project," "drive," "seek," "aim," "target," "potential," "commitment," ...

Digital Transformation and Strategy - Mondelēz International aims to generate 20% of its sales through digital commerce by 2030, with eCommerce sales growing "double digits" in 2024 [1][2] - The company's digital strategy focuses on consumer engagement, revenue management, and operational efficiency [3] - Mondelēz is investing over $1 billion to enhance its digital commerce capabilities, with direct-to-consumer sales representing about 15% of its digital sales [2][4] Financial Performance - For the fourth quarter, Mondelēz reported a revenue increase of 3.1% to $9.6 billion, while full-year revenue rose 1.2% to $36.4 billion [3] - The company is navigating challenges related to global cocoa price volatility but remains optimistic about stabilization [3][8] Partnerships and Technology Integration - Mondelēz has partnered with Amazon Web Services (AWS) to support its digital innovation and cloud migration, enhancing security and operational agility [4][5] - The integration of AI is being utilized to improve eCommerce capabilities, including inventory management and product discoverability [6] Acquisition Considerations - Mondelēz is exploring the acquisition of Hershey, which could potentially create a combined food company with nearly $50 billion in total sales [7] - This would not be the first attempt, as Mondelēz previously made a $23 billion bid for Hershey in 2016 [7]

Core Viewpoint - Mondelez (MDLZ) reported quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.66 per share, and down from $0.84 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -1.52%, with the company previously expected to post earnings of $0.85 per share but actually reporting $0.99 per share in the prior quarter, resulting in a surprise of 16.47% [2] - Mondelez's revenues for the quarter ended December 2024 were $9.6 billion, missing the Zacks Consensus Estimate by 0.91%, compared to $9.31 billion in the same quarter last year [3] - Over the last four quarters, Mondelez has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2][3] Stock Performance and Outlook - Mondelez shares have declined approximately 3.9% since the beginning of the year, while the S&P 500 has gained 1.9% [4] - The company's earnings outlook is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] - The current consensus EPS estimate for the upcoming quarter is $0.81 on revenues of $9.47 billion, and for the current fiscal year, it is $3.25 on revenues of $37.55 billion [8] Industry Context - The Food - Miscellaneous industry, to which Mondelez belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting potential challenges for stock performance [9]

Financial Performance - FY'24 net revenues increased by 1.2% to approximately $36.44 billion, with organic net revenue growth of 4.3%[4] - FY'24 diluted EPS declined by 5.5% to $3.42, while adjusted EPS on a constant currency basis increased by 13.0% to $3.36[5] - FY'24 gross profit increased by $493 million, with a gross profit margin of 39.1%, up 90 basis points year-over-year[7] - Operating income for FY'24 was $6.345 billion, with an operating income margin of 17.4%, up 210 basis points[7] - In Q4 2024, net revenues increased by 3.1%, with organic net revenue growth of 5.2%[9] - Q4 2024 diluted EPS was $1.30, up 85.7%, primarily due to favorable changes in mark-to-market impacts from derivatives[12] - For the three months ended December 31, 2024, net revenues increased to $9,604 million, up from $9,314 million in the same period of 2023, representing a growth of 3.1%[25] - Gross profit for the twelve months ended December 31, 2024, was $14,257 million, compared to $13,764 million in 2023, reflecting a gross profit margin increase from 38.2% to 39.1%[25] - Operating income for the three months ended December 31, 2024, rose to $1,611 million, a significant increase from $1,193 million in the prior year, resulting in an operating income margin of 16.8%[25] - Net earnings attributable to Mondelēz International for the twelve months ended December 31, 2024, were $4,611 million, compared to $4,959 million in 2023, indicating a decrease of 7%[25] Cash Flow and Shareholder Returns - FY'24 cash provided by operating activities was $4.9 billion, and free cash flow was $3.5 billion[1] - The company returned $4.7 billion to shareholders through cash dividends and share repurchases in FY'24[9] - Net cash provided by operating activities increased to $4,910 million in 2024, compared to $4,714 million in 2023, reflecting a growth of about 4%[31] - The company reported net cash used in financing activities of $5,780 million in 2024, a decrease from $7,558 million in 2023, showing an improvement of about 24%[31] Assets and Liabilities - Total assets decreased to $68,497 million as of December 31, 2024, from $71,391 million a year earlier, a decline of 4.1%[27] - Total liabilities decreased to $41,539 million as of December 31, 2024, compared to $43,025 million in 2023, reflecting a reduction of 3.4%[27] - Cash and cash equivalents decreased to $1,351 million as of December 31, 2024, down from $1,810 million in 2023, a decrease of 25.3%[27] - Total debt decreased to $17,749 million as of December 31, 2024, from $19,408 million in 2023, a reduction of 8.5%[27] Acquisitions and Divestitures - The company acquired Evirth (Shanghai) Industrial Co., Ltd. on November 1, 2024, adding incremental net revenues of $72 million and operating income of $10 million for the three and twelve months ended December 31, 2024[47] - The acquisition of Grupo Bimbo's confectionery business, Ricolino, resulted in acquisition integration costs of $21 million for the twelve months ended December 31, 2024[48] - The acquisition of Clif Bar & Company led to income of $87 million in the three months ended December 31, 2024, with expenses of $72 million in the three months ended December 31, 2023[49] - The company recorded a pre-tax gain of $108 million from the sale of its developed market gum business, which generated cash proceeds of $1.4 billion[46] - The divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $484 million for the twelve months ended December 31, 2024[46] Currency and Foreign Exchange Impact - The company anticipates a negative $0.12 impact to adjusted EPS in 2025 due to currency translation[11] - Unfavorable currency-related items impacted the company's Organic Net Revenue by $242 million (2.6 percentage points) due to unfavorable currency translation rate changes of $427 million (4.6 percentage points) for the three months ended December 31, 2024[81] - The company recorded unfavorable currency-related items of $191 million impacting Adjusted Operating Income for the twelve months ended December 31, 2024, primarily due to unfavorable currency translation rate changes of $460 million[81] - The company reported a total unfavorable currency-related impact of $710 million (2.0 percentage points) for the twelve months ended December 31, 2024[81] Operational Efficiency and Programs - The "Simplify to Grow Program" contributed $11 million to gross profit for Q4 2024[89] - The "Simplify to Grow Program" contributed $69 million to operating income in Q4 2024, consistent with the previous year's contribution[95] - The Simplify to Grow Program generated $149 million in operating income, with a net impact of $113 million on earnings[97] - The company plans to continue focusing on market expansion and new product development to drive future growth[104] Tax and Effective Tax Rate - The effective tax rate for the three months ended December 31, 2024, was 13.5%, down from 22.1% in the same period of 2023[25] - The effective tax rate for the reported earnings was 13.5% for Q4 2024, down from 22.1% in Q4 2023[95] Earnings and EPS Analysis - Basic earnings per share attributable to Mondelēz International for the three months ended December 31, 2024, was $1.31, compared to $0.70 in the same period of 2023, representing an increase of 87.1%[25] - Adjusted EPS for the twelve months ended December 31, 2024, was negatively impacted by unfavorable currency-related items of $0.12, driven by unfavorable currency translation rate changes of $0.32[81] - Adjusted EPS (Non-GAAP) for the twelve months ended December 31, 2024, was $3.36, reflecting a 9.1% increase from $3.08 in 2023[101] - The diluted earnings per share (EPS) was reported at $0.82, with shares outstanding totaling 1,364 million[96] - Diluted EPS attributable to Mondelēz International (GAAP) for Q4 2024 was $1.30, an increase of 85.7% from $0.70 in Q4 2023[99]

Core Insights - Mondelēz International reported a 1.2% increase in net revenues for FY'24, with organic net revenue growth of 4.3% despite a volume/mix decline of 1.0% [1][5] - The diluted EPS for FY'24 decreased by 5.5% to $3.42, while adjusted EPS on a constant currency basis increased by 13.0% to $3.36 [1][17] - The company generated $4.9 billion in cash from operating activities and returned $4.7 billion to shareholders [1][17] Financial Performance - Net revenues for Q4 2024 were $9.604 billion, reflecting a 3.1% increase compared to the previous year, driven by organic net revenue growth of 5.2% [3][21] - Gross profit for FY'24 increased by $493 million, with a gross profit margin of 39.1%, up 90 basis points year-over-year [5][21] - Operating income for FY'24 rose by $843 million, resulting in an operating income margin of 17.4%, an increase of 210 basis points [5][21] Regional Performance - In Q4 2024, Latin America experienced a 7.2% decline in net revenues, while Asia, Middle East & Africa saw a 9.9% increase [3] - For FY'24, North America reported a 1.5% decline in net revenues, while Europe experienced a 3.5% increase [3] 2025 Outlook - The company anticipates organic net revenue growth of approximately 5% for FY'25, but expects adjusted EPS to decline by about 10% on a constant currency basis due to cocoa cost inflation [9][10] - Currency translation is estimated to negatively impact 2025 net revenue growth by approximately 2.5% and adjusted EPS by $0.12 [9][10] Strategic Focus - The CEO emphasized the company's commitment to executing its long-term growth strategy and adapting to cocoa cost inflation challenges [2] - The company aims to maintain agility in navigating the current operating environment while focusing on top- and bottom-line growth [2]

Core Viewpoint - Analysts project Mondelez (MDLZ) will report quarterly earnings of $0.67 per share, a decline of 20.2% year over year, with revenues expected to reach $9.69 billion, an increase of 4.1% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 2.7% over the past 30 days, indicating a collective reassessment by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts estimate 'Geographic Revenue- North America' will reach $2.85 billion, reflecting a change of +2.6% year over year [5]. - 'Geographic Revenue- Europe' is projected to be $3.80 billion, indicating a change of +7.4% from the previous year [5]. - 'Geographic Revenue- AMEA' is expected to be $1.84 billion, showing a change of +6.2% year over year [5]. - 'Geographic Revenue- Latin America' is forecasted at $1.18 billion, indicating a decline of -6.6% from the prior year [6]. Operating Income Estimates - 'Operating Income- AMEA- Non-GAAP' is projected to reach $238.65 million, down from $246 million in the same quarter last year [6]. - 'Operating Income- Europe- Non-GAAP' is expected to be $550.97 million, compared to $643 million in the previous year [7]. - 'Operating Income- North America- Non-GAAP' is forecasted at $411.21 million, down from $505 million year over year [7]. - 'Operating Income- Latin America- Non-GAAP' is estimated at $115.01 million, compared to $159 million in the same quarter last year [8]. Stock Performance - Mondelez shares have decreased by -1.8% in the past month, contrasting with the Zacks S&P 500 composite's increase of +2.9% [9]. - With a Zacks Rank 4 (Sell), MDLZ is expected to underperform the overall market in the near term [9].

Core Insights - Mondelez International, Inc. (MDLZ) is expected to report revenue growth of 4.1% year-over-year, with a consensus estimate of $9.69 billion for Q4 2024 [1] - The earnings per share (EPS) estimate has decreased by 21.4% to 66 cents, reflecting a decline from the previous year [2] - The company has shown resilience in its core categories of chocolate and biscuits, which are expected to grow by 6.4% and 5.2% respectively in Q4 [3][4] Revenue and Pricing Strategies - Mondelez's revenue growth management strategies, including tailored pack sizes and diverse price points, have helped maintain consumer loyalty and market share [3] - The company anticipates a 4.6% increase in pricing for Q4, with organic revenue growth projected at 5.6% [5] Cost Pressures and Earnings Outlook - Significant input cost pressures are expected due to high cocoa prices, which may have peaked in Q4, potentially impacting earnings negatively [6] - The current model does not predict an earnings beat for Mondelez, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of -3.50% [7]

Core Insights - Mondelēz International, Inc. will present at the annual Consumer Analyst Group of New York (CAGNY) Conference on February 18, 2025, at 2:00 p.m. ET [1] - The company reported net revenues of approximately $36 billion for the year 2023, indicating a strong position in the global snacking market [2] Company Overview - Mondelēz International operates in over 150 countries, focusing on empowering people to snack right [2] - The company features a portfolio of iconic brands including Oreo, Ritz, LU, Clif Bar, Tate's Bake Shop, Cadbury Dairy Milk, Milka, and Toblerone [2] - Mondelēz is a member of the Standard and Poor's 500, Nasdaq 100, and Dow Jones Sustainability Index, highlighting its significant market presence and commitment to sustainability [2]

Core Viewpoint - Mondelez is expected to report a year-over-year decline in earnings despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $0.66 per share, reflecting a -21.4% change year-over-year, while revenues are projected at $9.69 billion, an increase of 4.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 2.69% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -3.50%, suggesting that analysts have lowered their expectations for Mondelez's earnings [11]. Historical Performance - Mondelez has a history of beating consensus EPS estimates, having done so in the last four quarters, including a +16.47% surprise in the most recent quarter [12][13]. Stock Movement Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment and stock performance [14][16].