Group 1 - The core revenue for the company in the fiscal year 2025 reached $11.69 billion, approximately 81.13 billion RMB, representing a year-on-year growth of 4.38% [1] - The net profit attributable to shareholders for the same period was $883 million, about 6.13 billion RMB, showing a significant decrease of 60.2% year-on-year [1] - In Q4 2025, the company's revenue was $3.09 billion, around 21.44 billion RMB, with a year-on-year increase of 7.0%, while net profit dropped to $320 million, approximately 2.22 billion RMB, down 59.9% year-on-year [1] Group 2 - The gross margin for the entire year of 2025 was 33.5%, down from 47.3% in the previous year, and the Q4 gross margin fell by 17 percentage points to 37.0% [1] - The decline in gross margin was attributed to higher commodity costs and tariffs, along with a decrease in sales volume [1] - Cocoa price fluctuations were identified as a key factor impacting the company's profitability, with prices rising significantly from Q2 2024 and remaining high into early 2025 [1] Group 3 - The company has a positive outlook for 2026, expecting revenue growth of 4%-5% and an increase in earnings per share by 79% to 89% [1]

Financial Data and Key Metrics Changes - The company anticipates 4%-5% net sales growth and meaningful earnings recovery for 2026, indicating a positive outlook following a challenging 2025 [4] - The gross margin is expected to recover to 41% in 2026, which is an improvement from 2025 but still below historical levels [24][26] Business Line Data and Key Metrics Changes - The snacks business experienced an 18% growth in Q4, driven by double-digit volume growth, showcasing strong performance in this segment [12][47] - Organic sales growth for the confection segment is around 3%, while salty snacks are expected to grow in the mid-single digits [99] Market Data and Key Metrics Changes - The company is gaining market share in key international markets such as Canada, Mexico, Brazil, and the UK, indicating a strong international growth potential [102] - The company has factored in the impact of SNAP waivers into its outlook, with only 2 states currently implementing these waivers for candy [88] Company Strategy and Development Direction - The company is focused on investing in innovation, brand building, and execution to drive growth, with a significant increase in advertising planned for 2026 [29][30] - The strategy includes a balanced approach to growth and margin recovery, with multi-year investments aimed at sustaining long-term top-line growth [30][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their portfolio despite headwinds like cocoa inflation and macro volatility [4] - The company is optimistic about the cocoa market, anticipating a larger supply surplus in 2025 and 2026, which could lead to further deflation in cocoa prices [26][60] Other Important Information - The company plans to connect its brands to cultural moments throughout the year, enhancing consumer engagement and driving sales [90] - The management highlighted the importance of maintaining a rational pricing strategy in the category, with expectations for continued promotional activities [95] Q&A Session Summary Question: Concerns about potential price deflation due to cocoa price decline - Management acknowledged the sophisticated nature of competitors and emphasized their patient approach to pricing, ensuring affordability while navigating cocoa cost inflation [9][10] Question: Elasticity and its impact on pricing strategy - Management noted that current elasticities are favorable, and they are planning for around 0.8 to account for fluctuations, with a goal to exceed this [19] Question: Insights on cocoa's impact on margins - Management indicated that while cocoa prices have declined, they expect to see a recovery in gross margins, but volatility remains a concern [24][26] Question: Plans for brand investment and its durability - Management stated that investments in 2026 are designed to lay a foundation for future growth, with a focus on demand creation and innovation [30] Question: Performance in international markets - Management expressed optimism about international growth, highlighting market share gains and a focused strategy for key markets [102] Question: Impact of SNAP changes on business - Management described SNAP changes as a manageable headwind, with ongoing monitoring and strategies in place to adapt [88] Question: Expectations for earnings growth and flexibility in guidance - Management emphasized the momentum in the business and the flexibility built into their guidance to respond to changing conditions [46][49]

Core Viewpoint - Mondelez International forecasts a slowdown in growth this year due to fluctuating cocoa prices, which may create short-term pressures depending on competitors' responses and the stabilization of these prices [1] Group 1: Company Performance - Mondelez, owner of Oreo and Cadbury, reported a 4.8% decline in stock price during after-hours trading, dropping to $56.63 [1] - The company's stock has increased by 3.6% over the past year [1] Group 2: Market Conditions - Recent sudden drops in cocoa prices could lead to unexpected competitive reactions, prompting the company to maintain flexibility in its performance expectations [1] - CEO Dirk Van de Put expressed uncertainty about how the market will evolve in response to these price changes [1]

Group 1: Cocoa Price Trends - Cocoa prices are currently down, with December ICE NY cocoa down -3.73% and December ICE London cocoa down -2.07% due to improved weather conditions in West Africa, which may enhance cocoa output [1] - Cocoa prices fell to 1.75-month lows amid expectations of growing supplies and weakening demand, influenced by high cocoa prices and tariffs affecting chocolate demand [4] - The International Cocoa Organization (ICCO) revised its 2023/24 global cocoa deficit to -494,000 MT, the largest deficit in over 60 years, while forecasting a global cocoa surplus of 142,000 MT for 2024/25 [11] Group 2: Supply and Production Factors - The slowdown in cocoa exports from the Ivory Coast is bullish for prices, with shipments reported at 1.82 MMT, up +5.8% from last year but down from a larger +35% increase seen in December [3] - Quality concerns regarding the Ivory Coast's mid-crop cocoa are supportive of prices, with an estimated mid-crop of 400,000 MT, down -9% from last year's 440,000 MT [7] - Nigeria's Cocoa Association projects a decline in cocoa production by -11% y/y to 305,000 MT for the 2025/26 crop year, which may support prices [8] Group 3: Demand Dynamics - Weakness in global cocoa demand has been a bearish factor, with Q2 European cocoa grindings falling -7.2% y/y and Q2 Asian cocoa grindings down -16.3% y/y, the smallest amount for a Q2 in 8 years [9] - Chocolate makers like Lindt & Sprüngli AG and Barry Callebaut AG have lowered their sales volume guidance due to high cocoa prices, indicating a potential decline in chocolate demand [4] Group 4: Weather Impact - Recent rains in West Africa are easing dry conditions, which may promote flowering of cocoa trees and boost output, contributing to bearish price pressure [1] - The past 60 days have been the driest on record since 1979 for West Africa, impacting cocoa pod retention before the main crop harvest [6]

Cocoa Prices and Market Dynamics - Cocoa prices are currently rising, with December ICE NY cocoa up by 0.88% and December ICE London cocoa up by 1.45%, driven by weather concerns in West Africa [1] - Heavy rainfall in the Ivory Coast has hindered farmers' access to cocoa fields, while dryness in Ghana and Nigeria has negatively impacted crop health [1] - Tighter cocoa inventories in the US, which have fallen to a 3.75-month low of 2,123,868 bags, are also supporting price increases [3] Supply and Demand Factors - Cocoa prices had previously dropped to 1.5-month lows due to expectations of increased supply amid weakening demand, with notable declines in chocolate sales reported by major companies [4] - Optimism regarding this year's cocoa crop harvest in West Africa is present, with a cocoa pod count reported to be 7% above the five-year average [5] - The pace of cocoa exports from the Ivory Coast has slowed, with shipments reported at 1.81 million metric tons, a 5.8% increase from last year but lower than previous months [7] Quality and Production Concerns - Quality issues with the Ivory Coast's mid-crop cocoa, attributed to late rain, are contributing to price support, with an estimated mid-crop of 400,000 metric tons, down 9% from last year [8] - Nigeria's cocoa production is projected to decline by 11% year-on-year to 305,000 metric tons for the 2025/25 crop year, which may also support cocoa prices [9] Global Demand Trends - Weakness in global cocoa demand has been a bearish factor, with significant declines in cocoa grindings reported in Europe (-7.2%), Asia (-16.3%), and North America (-2.8%) [10] - Ghana's projected increase in cocoa production by 8.3% year-on-year to 650,000 metric tons for the 2025/26 crop year may exert downward pressure on cocoa prices [11] Global Cocoa Market Outlook - The International Cocoa Organization has revised its 2023/24 global cocoa deficit to 494,000 metric tons, the largest in over 60 years, while forecasting a surplus of 142,000 metric tons for 2024/25 [12]