Mondelez International(MDLZ)2025-02-05 19:52Financial Performance - For the year ended December 31, 2024, net revenues increased to $36,441 million, up from $36,016 million in 2023, representing a growth of 1.2%[354] - Gross profit for 2024 was $14,257 million, compared to $13,764 million in 2023, reflecting an increase of 3.6%[354] - Operating income rose to $6,345 million in 2024, up from $5,502 million in 2023, indicating a growth of 15.3%[354] - Net earnings attributable to Mondelēz International for 2024 were $4,611 million, a decrease from $4,959 million in 2023, representing a decline of 7%[354] - Basic earnings per share attributable to Mondelēz International for 2024 were $3.44, down from $3.64 in 2023, reflecting a decrease of 5.5%[354] - Net earnings for 2024 were $4,623 million, a decrease of 7% compared to $4,968 million in 2023[357] - Comprehensive earnings attributable to Mondelēz International for 2024 were $3,086 million, down from $4,960 million in 2023[357] Market Presence and Operations - The company operates in both emerging markets, including Latin America and parts of Europe, and developed markets, including North America and Australia[26] - The company generated 74.0% of its 2024 net revenues outside the United States, indicating strong international market presence[83] - The company operates in approximately 80 countries and markets products in over 150 countries, exposing it to global operational risks[83] - The company has completed several strategic transactions, including the sale of its developed market gum business and the acquisition of Evirth (Shanghai) Industrial Co., Ltd[114] Innovation and Product Development - The company focuses on innovation and new product development, aiming for continuous improvement in food safety and quality, with a robust framework for technology-driven product bundles[31] - Recent product launches include zero-sugar Oreos in China and reduced sugar candies in Australia, catering to evolving consumer preferences[32] - The company has a dedicated innovation hub, SnackFutures, aimed at leveraging emerging consumer trends and investing in early-stage entrepreneurs[33] Sustainability and Environmental Impact - The company emphasizes sustainability, with goals for more sustainable sourcing and reducing its environmental footprint, validated by the Science Based Targets Initiative[52] - The company announced a goal of achieving net zero greenhouse gas emissions by 2050, which will require significant transformation and capital investment[124] - Increased scrutiny from stakeholders regarding sustainability initiatives could impact the company's reputation and ability to attract or retain employees[120] - The company is exposed to risks from climate change, including increased costs and supply chain disruptions due to extreme weather events[121] Regulatory and Compliance Risks - The company is subject to various local, national, and multinational laws and regulations that impact operations, including environmental laws and extended producer responsibility policies in the EU[61] - The company is monitoring developments in laws and regulations that could impact its operations and financial condition[63] - Compliance with various international laws and regulations is critical, including anti-bribery and competition laws[86] - The company faces risks related to compliance with evolving laws and regulations across various countries, which could adversely affect product sales and financial condition[133] Supply Chain and Commodity Risks - The company monitors global supply and commodity trends to manage costs effectively, employing hedging strategies to mitigate risks from commodity price fluctuations[37] - Price volatility and higher aggregate costs in 2024 were driven by disrupted international supply chains, labor market challenges, and soaring commodity prices, particularly for cocoa beans[80] - The company has faced challenges in hedging against commodity price increases, which may affect profitability due to fluctuating input costs[82] - The company must effectively manage its supply chain to avoid disruptions caused by unpredictable factors such as natural disasters and geopolitical tensions[113] Workforce and Employee Development - The workforce profile as of December 31, 2024, included approximately 90,000 employees, with about 12,000 in the U.S. and 78,000 internationally[40] - The company continues to invest in employee development through training programs and a hybrid work model to enhance collaboration and engagement[42] - The company is committed to equal pay for equal work, with a recent analysis showing a pay gap of less than 1% between male and female employees performing similar roles[50] Financial Position and Assets - The company's indefinite-life intangible assets balance was $17.8 billion as of December 31, 2024, primarily consisting of brand names[347] - Total current assets increased to $13,242 million in 2024, up from $11,703 million in 2023, reflecting a growth of 13.1%[360] - Total liabilities decreased to $41,539 million in 2024 from $43,025 million in 2023, a reduction of 3.4%[360] - Cash and cash equivalents decreased to $1,351 million in 2024 from $1,810 million in 2023, a decline of 25.3%[360] Strategic Challenges - The company must adapt to competitive pressures and changing market conditions to maintain market share and profitability[94] - The company faces challenges in accurately predicting long-term consumer trends, which could impact its ability to meet growth targets[103] - The ongoing conflicts in the Middle East could impact demand for products and increase supply chain costs[84] - The war in Ukraine has affected business operations, with Russia accounting for 2.9% and Ukraine for 0.4% of 2024 consolidated net revenues[89] Risk Management - Cybersecurity remains a significant concern, with the company investing in enhanced security measures to mitigate risks from breaches and disruptions[110] - The company utilizes derivative instruments to manage risks associated with currency exchange rates, commodity prices, and interest rates[329] - The company has entered into forward purchase agreements and other derivative financial instruments to manage input cost volatility and inflation[331]