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Mondelez International(MDLZ) - 2024 Q4 - Annual Results
MDLZMondelez International(MDLZ)2025-02-04 21:12

Financial Performance - FY'24 net revenues increased by 1.2% to approximately 36.44billion,withorganicnetrevenuegrowthof4.336.44 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′24grossprofitincreasedby3.36[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 6.345billion,withanoperatingincomemarginof17.46.345 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 9,604million,upfrom9,604 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 14,257million,comparedto14,257 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 1,611million,asignificantincreasefrom1,611 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 4,611million,comparedto4,611 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 4.9billion,andfreecashflowwas4.9 billion, and free cash flow was 3.5 billion[1] - The company returned 4.7billiontoshareholdersthroughcashdividendsandsharerepurchasesinFY′24[9]−Netcashprovidedbyoperatingactivitiesincreasedto4.7 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 4,714millionin2023,reflectingagrowthofabout44,714 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 7,558millionin2023,showinganimprovementofabout247,558 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 71,391millionayearearlier,adeclineof4.171,391 million a year earlier, a decline of 4.1%[27] - Total liabilities decreased to 41,539 million as of December 31, 2024, compared to 43,025millionin2023,reflectingareductionof3.443,025 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 1,810millionin2023,adecreaseof25.31,810 million in 2023, a decrease of 25.3%[27] - Total debt decreased to 17,749 million as of December 31, 2024, from 19,408millionin2023,areductionof8.519,408 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 10millionforthethreeandtwelvemonthsendedDecember31,2024[47]−TheacquisitionofGrupoBimbo′sconfectionerybusiness,Ricolino,resultedinacquisitionintegrationcostsof10 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 87millioninthethreemonthsendedDecember31,2024,withexpensesof87 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 108millionfromthesaleofitsdevelopedmarketgumbusiness,whichgeneratedcashproceedsof108 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 484millionforthetwelvemonthsendedDecember31,2024[46]CurrencyandForeignExchangeImpact−Thecompanyanticipatesanegative484 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 242million(2.6percentagepoints)duetounfavorablecurrencytranslationratechangesof242 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 191millionimpactingAdjustedOperatingIncomeforthetwelvemonthsendedDecember31,2024,primarilyduetounfavorablecurrencytranslationratechangesof191 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 710million(2.0percentagepoints)forthetwelvemonthsendedDecember31,2024[81]OperationalEfficiencyandPrograms−The"SimplifytoGrowProgram"contributed710 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 69milliontooperatingincomeinQ42024,consistentwiththepreviousyear′scontribution[95]−TheSimplifytoGrowProgramgenerated69 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 113milliononearnings[97]−Thecompanyplanstocontinuefocusingonmarketexpansionandnewproductdevelopmenttodrivefuturegrowth[104]TaxandEffectiveTaxRate−TheeffectivetaxrateforthethreemonthsendedDecember31,2024,was13.5113 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 0.70inthesameperiodof2023,representinganincreaseof87.10.70 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]−AdjustedEPS(Non−GAAP)forthetwelvemonthsendedDecember31,2024,was0.32[81] - Adjusted EPS (Non-GAAP) for the twelve months ended December 31, 2024, was 3.36, reflecting a 9.1% increase from 3.08in2023[101]−Thedilutedearningspershare(EPS)wasreportedat3.08 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,anincreaseof85.71.30, an increase of 85.7% from 0.70 in Q4 2023[99]