Core Insights - Mondelez International, Inc. (MDLZ) reported first-quarter 2025 results with net revenues increasing year over year but missing the Zacks Consensus Estimate, while adjusted earnings per share (EPS) declined year over year but exceeded consensus expectations [1][2] Financial Performance - Adjusted EPS was 74 cents, down 18.3% on a constant-currency basis, beating the Zacks Consensus Estimate of 65 cents [2] - Net revenues rose 0.2% year over year to $9,313 million, missing the Zacks Consensus Estimate of $9,332 million, with growth attributed to the Evirth acquisition but offset by negative currency impacts [2] - Organic net revenues grew 3.1% year over year, driven by a 6.6 percentage point increase in pricing, partially offset by a 3.5 percentage point unfavorable volume/mix impact [3] Market Segment Performance - Revenues from emerging markets decreased 0.3% to $3,723 million but increased 3.9% on an organic basis, supported by a 7.6 percentage point increase in pricing [4] - Revenues from developed markets increased 0.6% to $5,590 million, with an organic rise of 2.6%, primarily due to strong pricing execution [5] - Region-wise, revenues in Latin America and North America declined 8.8% and 4.1%, respectively, while Asia, the Middle East & Africa, and Europe grew 3.4% and 5.4% [6] Profitability Metrics - Adjusted gross profit fell by $437 million on a constant-currency basis, with the adjusted gross profit margin contracting 580 basis points to 33.4% due to increased raw material and transportation costs [7] - Adjusted operating income declined by $308 million on a constant-currency basis, with the adjusted operating income margin contracting 370 basis points to 14.8% [8] Financial Health - The company ended the quarter with cash and cash equivalents of $1,561 million, long-term debt of $15,796 million, and total equity of $25,823 million [9] - Net cash from operating activities was $1,092 million for the three months ended March 31, 2025, with adjusted free cash flow of $815 million [9] - Mondelez returned $2.1 billion to shareholders through cash dividends and share repurchases in the first quarter of 2025 [10] Future Outlook - Mondelez projects organic net revenue growth of around 5% in 2025, with adjusted EPS expected to decline nearly 10% on a constant-currency basis due to unprecedented cocoa cost inflation [11] - The company anticipates that currency translation will not impact 2025 net revenue growth and adjusted EPS [11] - Mondelez's shares have risen 12.3% in the past three months, outperforming the industry's 2.5% decline [11]

Core Insights - Mondelēz International reported a slight increase in net revenues of 0.2% for Q1 2025, with organic net revenue growth of 3.1%, but faced a decline in volume/mix of 3.5% [1][6] - The diluted EPS fell significantly by 70.2% to $0.31, while adjusted EPS decreased by 18.3% on a constant currency basis to $0.74 [1][5] - The company generated $1.1 billion in cash from operating activities and reported free cash flow of $0.8 billion, returning $2.1 billion to shareholders [1][6] Financial Performance - Net revenues for Q1 2025 were $9,313 million, showing a 0.2% increase compared to the previous year, with organic net revenue growth of 3.1% [4][20] - The gross profit decreased to $2,430 million, with a gross profit margin of 26.1%, down 25.0 percentage points year-over-year [5][20] - Operating income was reported at $680 million, reflecting a 75.1% decline, with an operating income margin of 7.3%, down 22.1 percentage points [5][20] Regional Performance - In Latin America, net revenues were $1,203 million, down 8.8%, while organic net revenue growth was 3.9% [4] - Asia, Middle East & Africa reported net revenues of $2,016 million, with a 3.4% increase and organic growth of 1.8% [4] - Europe saw net revenues of $3,550 million, up 5.4%, with organic growth of 8.9% [4] Strategic Outlook - The company reaffirmed its outlook for 2025, expecting organic net revenue growth of approximately 5% and a decline in adjusted EPS of about 10% on a constant currency basis due to cocoa cost inflation [8][51] - Free cash flow for 2025 is projected to exceed $3 billion, with no expected impact from currency translation on net revenue growth or adjusted EPS [8][51] Shareholder Returns - Mondelēz returned $2.1 billion to shareholders through cash dividends and share repurchases in the first quarter of 2025 [1][6] - The company continues to focus on delivering sustainable shareholder value while navigating a volatile operating environment [3][6]