Mondelez International(MDLZ)2025-02-04 21:12Financial 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]