Core Viewpoint - Mondelez International, Inc. has shown strong financial performance and attractive shareholder returns, leading to an upgrade in investment rating from neutral to buy [2][32]. Financial Performance - In Q2, Mondelez reported revenues of $8.34 billion, missing analyst expectations by $110.56 million and reflecting a year-over-year decline of approximately 2% [33]. - Despite the revenue decline, organic net revenue increased by about 2.5%, driven by strong pricing actions of 4.7%, partially offset by a decrease in volume/mix of -2.2% [37]. - The company achieved an EPS of $0.86, exceeding initial expectations [33]. Shareholder Returns - Mondelez has a strong history of returning value to shareholders, with 22 consecutive years of dividend payments and a recent announcement of an 11% increase in dividends per share [8][11]. - The company has returned significant amounts to shareholders through share buybacks, which, if considered as dividends, would imply an annual payout of approximately $3.48 per share [17]. Valuation - Using a dividend discount model, the fair value estimate for Mondelez's stock is $68 per share, slightly below the current share price of $70, not accounting for the positive impacts of share buybacks [16]. - The stock is trading at a premium compared to the sector median but is selling at a discount compared to its historical valuation figures [27][28]. Profitability and Margins - The gross margin has decreased by 590 basis points, and the operating margin has declined by 660 basis points, attributed to various one-off factors including currency and commodity hedging losses and higher integration costs [42]. - Despite the margin pressures, the company generated strong cash flow, sufficient to support dividends and share buybacks [43]. Market Performance - Emerging markets have shown larger growth compared to developed markets, contributing positively to the overall financial results [39]. - The company anticipates that potential decreases in interest rates may boost consumer confidence and demand for discretionary products, benefiting future sales [41].

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Core Viewpoint - Mondelez International is positioned as a safe-haven stock amid market volatility, with a focus on its resilient business model and potential for future growth [1][2]. Financial Performance - Mondelez reported a nearly 2% decline in revenue year-over-year for Q2, missing consensus estimates, but achieved 2.5% organic growth and maintained flat cash flow levels despite top-line weakness [5]. - Adjusted earnings rose by 25% compared to the previous year, significantly beating consensus estimates [5]. - The company has a dividend yield of 2.49%, with an annual dividend of $1.70 and a dividend payout ratio of 53.97% [3]. Investment Appeal - Mondelez's low beta of 0.5x indicates it is half as volatile as the S&P 500, making it an attractive option for risk-averse investors [2]. - The company has a strong track record of dividend increases, with 12 years of consistent growth, positioning it for Dividend Aristocrat status [3][4]. - Analysts have raised price targets for Mondelez, indicating a nearly 20% upside potential from current trading levels, with a consensus price target of $79 [6]. Market Dynamics - The current market environment is characterized by volatility, with a shift in policy expected to lead to easing economic conditions and a broader stock rally in the future [1]. - Mondelez's share count has decreased by 1.7% in Q2 and 1.4% in the first half of the year due to ongoing share repurchase programs, which are expected to continue [4].

Mondelez International, Inc. (MDLZ) reported second-quarter 2024 results, wherein the bottom line beat the Zacks Consensus Estimate while the top line missed the same. Also, earnings improved year over year.Robust bottom-line results and free cash flow generation can be attributed to effective pricing strategies, efficient cost management and impressive momentum in emerging markets. Despite a challenging and dynamic operating environment, management remained focused on executing the long-term growth strateg ...

Core Insights - Mondelez International reported second-quarter adjusted EPS of 86 cents, exceeding analyst expectations of 79 cents per share [1] - Quarterly sales amounted to $8.343 billion, falling short of the analyst consensus estimate of $8.454 billion [1] - The company raised its quarterly dividend by 11%, increasing from 42.5 cents to 47 cents per share [1] Financial Performance - The strong profitability and cash flow generation were attributed to strategic growth initiatives, brand reinvestment, price execution, and cost discipline [2] - Mondelez shares increased by 3.2%, trading at $69.20 following the earnings announcement [2] Analyst Ratings and Price Targets - Piper Sandler analyst Michael Lavery maintained an Overweight rating on Mondelez and raised the price target from $76 to $78 [3] - JP Morgan analyst Ken Goldman also maintained an Overweight rating, increasing the price target from $72 to $73 [3]

Financial Data and Key Metrics Changes - Organic net revenue grew by 2.5% in Q2 2024, with adjusted gross profit dollar growth of 11.3% and adjusted EPS increasing by 25% [7][20][26] - Free cash flow generation was strong, totaling $1.5 billion in the first half of the year, with an 11% increase in dividends announced [5][27] Business Line Data and Key Metrics Changes - Biscuits and baked snacks grew by 0.8% for the quarter, with brands like Oreo and Ritz gaining market share [21][23] - Chocolate segment grew by 5.6%, driven by strong performance in both developed and emerging markets, with Cadbury Dairy Milk and Milka showing significant growth [21][22] - Gum and candy grew by 2.9%, supported by momentum in key markets such as China and Brazil [22] Market Data and Key Metrics Changes - North America experienced a growth of 0.3%, with challenges in the biscuit category but improvements noted in brands like Chips Ahoy! [23][24] - Europe grew by 2.7%, with strong execution leading to share gains despite volume declines due to customer disruptions [23] - Emerging markets saw a revenue increase of 4.5%, with strong growth in China and Brazil, while India faced challenges due to food inflation [24][25] Company Strategy and Development Direction - The company is focused on long-term growth in chocolate, biscuits, and baked snacks, aiming for 90% of revenue from these core categories by 2030 [14][19] - A strategic partnership with Lotus Bakeries was announced to develop co-branded chocolate products and expand the biscuit business in India [18][19] - Continued investment in advertising and consumer engagement is emphasized, with innovative marketing campaigns planned for brands like Oreo [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted a stabilizing consumer environment in North America, with inflation pressures easing and consumer confidence improving [32][33] - The outlook for Q3 and the second half of the year remains positive, with expectations for volume growth in Europe and North America [30][34] - Cocoa prices are anticipated to be a significant headwind in the second half, but the company is well-positioned to manage costs and maintain profitability [26][28] Other Important Information - The company is making progress on its sustainability agenda, aiming for net zero carbon by 2050, with a carbon-neutral biscuit manufacturing plant in China [17] - The ERP transition is being implemented over four years to minimize disruptions, with a focus on successful execution [40] Q&A Session Summary Question: Consumer situation in North America and need for price reset - Management indicated that while the category remains soft, it is stabilizing, and they do not foresee a full price reset but will focus on targeted promotions and smaller pack sizes [32][33] Question: Volume growth expectations and drivers - Management expects volume growth to return in Europe, driven by strong execution and upcoming consumer activities [34] Question: Impact of ERP transition - The ERP program will be rolled out in phases to minimize disruptions, with careful planning to ensure successful execution [40] Question: Long-term free cash flow guidance - Management indicated that free cash flow could exceed $4 billion on an ongoing basis, with current guidance at $3.5 billion for the year [42] Question: Cocoa pricing strategy - The company is securing cocoa positions for 2025 and expects a market correction, with a significant portion of their positions already covered [46][48] Question: Partnership with Biscoff - The partnership involves co-branding chocolate products and distributing Biscoff cookies in India, with potential for global expansion if successful [48]

Mondelez (MDLZ) reported $8.34 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 1.9%. EPS of $0.86 for the same period compares to $0.76 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $8.39 billion, representing a surprise of -0.59%. The company delivered an EPS surprise of +10.26%, with the consensus EPS estimate being $0.78.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how the ...

Mondelez (MDLZ) came out with quarterly earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.26%. A quarter ago, it was expected that this maker of Oreo cookies, Cadbury chocolate and Trident gum would post earnings of $0.88 per share when it actually produced earnings of $0.95, delivering a surprise of 7.95%. ...

Q2 2024 RESULTS July 30, 2024 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," "outloo ...