Core Insights - Mondelez International, Inc.'s chocolate business experienced strong growth in full-year 2025, driven by pricing actions and robust brand performance across various markets [1][6] Financial Performance - Chocolate organic net revenues increased by 11.4% in 2025, primarily due to pricing and revenue growth management actions in response to high cocoa costs [2][8] - The category faced a 7.5 percentage point decline in volume and mix, with over 3 percentage points attributed to deliberate actions like product downsizing [2] Regional Performance - Europe was significant in shaping chocolate performance, reporting an organic net revenue growth of 8.6%, supported by effective pricing execution, although volumes declined due to consumer reactions to cocoa-related pricing [3][8] Future Outlook - Management anticipates stabilization of chocolate volumes in Europe following recent pricing cycles, focusing on price-pack architecture, increased advertising, and expansion into segments like pralines and filled chocolates [4] - The company is investing in innovation, including products that require lower cocoa usage, with chocolate products featuring Biscoff performing better than expected [4] Cocoa Cost Dynamics - Cocoa costs are a critical factor, with prices having decreased from last year's peak, and a supply surplus expected in the 2025 to 2026 cycle [5] - Mondelez has secured most of its 2026 cocoa needs at prices still above current market levels [5] Market Position - Despite volume pressures from high cocoa costs, Mondelez's chocolate strength remains intact, with shares rising 6.5% year-to-date compared to the industry's decline of 3.5% [6]

Core Insights - Mondelēz International is adapting its product offerings by reducing chocolate content in new launches and introducing more premium options due to high cocoa prices impacting its business [1][4]. Group 1: Market Context - Mondelēz is the second-largest player in the $147 billion global chocolate market and is currently facing challenges from high cocoa prices, despite a significant drop in cocoa spot prices from their record highs in late 2024 [2]. - The company typically purchases cocoa supplies nearly a year in advance, meaning it may not benefit from lower commodity costs until 2027, barring any unexpected market volatility [3]. Group 2: Strategic Adjustments - The company is rethinking innovation and repositioning its brands, particularly in Europe and emerging markets, where approximately 95% of its chocolate sales occur [4]. - Changes include offering more products filled with nougat, caramel, nuts, and fruits, which require less chocolate than traditional solid blocks [5]. Group 3: Premiumization Strategy - Mondelēz is expanding its premium chocolate offerings, which generate nearly double the revenue compared to mainstream products, and is collaborating with Biscoff on co-branded products [6]. - The company is also diversifying into smaller offerings like bite-size treats and plans to grow its presence in discount retail channels [7]. Group 4: Future Investments - As cocoa prices decline, Mondelēz is seeing some benefits and plans to increase investment in advertising and marketing for its chocolate brands in 2026 [7]. - The company intends to reinvest part of its margin improvements into brand development, focusing on in-store promotions and advertising [8].

Group 1 - Mondelez International, Inc. (NASDAQ:MDLZ) is recognized as a strong investment opportunity in the sugar stock sector, with a commitment to long-term value creation highlighted at the 2026 CAGNY Conference [1] - The company aims for a long-term growth algorithm of 3% to 5% organic net revenue growth, high-single-digit adjusted EPS growth, and over $3 billion in free cash flow [1] - Despite facing unprecedented cocoa input cost inflation impacting 2025 performance, Mondelez reported solid top-line growth and strong free cash flow [1] Group 2 - DA Davidson raised the price target for Mondelez to $64 from $62 while maintaining a Neutral rating, indicating expectations for sustained growth through brand equity investment and distribution gains [2] - However, near-term challenges such as inventory cost phasing and customer disruption in Europe are expected to pressure both top and bottom lines through the first half of 2026 [2] Group 3 - Mondelez manufactures and markets a variety of packaged snack food and beverage products, including well-known brands like Oreo, Cadbury Dairy Milk, and Ritz, and operates in over 150 countries [3]

Summary of Conference Call for Mondelēz International Company Overview - **Company**: Mondelēz International - **Industry**: Global snacks, particularly chocolate, biscuits, and baked snacks Key Points and Arguments Industry Dynamics - The global chocolate market is described as dynamic, with significant challenges due to cocoa input cost inflation impacting performance in developed markets, particularly in the U.S. and Europe [2][19] - Despite these challenges, the company has maintained solid top-line growth and free cash flow, continuing to invest in its business [2][11] Growth Strategy - Mondelēz aims to improve performance through strategic actions focused on core categories: chocolate, biscuits, and baked snacks, which currently account for about 80% of net revenues [3][10] - The company is targeting a long-term organic net revenue growth of 3%-5%, with high single-digit adjusted EPS growth and over $3 billion in free cash flow [10][39] Market Position - Mondelēz holds a leading position in the global snacks market, with a 17% share in biscuits (valued at $128 billion) and a 12.4% share in chocolate (valued at $147 billion) [4][5] - The company has a strong presence in emerging markets, which are expected to grow at a CAGR of 9% over the next five years, driven by rising disposable incomes and urbanization [28][29] North American Market Insights - The North American business has delivered a 4% CAGR over the past five years, with net revenue projected at about $11 billion for 2025 [11][18] - Key brands like Oreo and Chips Ahoy are performing well, with Oreo generating $2 billion in net revenue [11][12] - The company is addressing changing consumer behaviors by increasing investments in marketing and optimizing product offerings to meet price sensitivity [13][14] European Market Insights - The European business has shown robust growth of about 8% over the past five years, with net revenue of approximately $15 billion for 2025 [18][19] - Chocolate remains a strong category, with a CAGR of 7% over the past five years, despite challenges from cocoa cost inflation [19][22] - Strategic actions include broadening offerings across chocolate segments and enhancing brand presence in under-indexed channels [21][24] Emerging Markets Strategy - Emerging markets represent a $15 billion business for Mondelēz, with significant growth potential in countries like China, India, Brazil, and Mexico [28][30] - The company plans to expand its presence in these markets through localized strategies, product innovation, and enhanced distribution networks [30][37] Supply Chain and Operational Improvements - A multi-year supply chain capability improvement program is underway to optimize operations and increase margins [17][39] - The company is investing in local supply chains to enhance efficiency and service delivery, which is crucial for capturing growth in emerging markets [29][39] Financial Performance and Capital Allocation - Despite pressures from cocoa inflation, Mondelēz managed to deliver strong free cash flow and is targeting over $4 billion in free cash flow generation moving forward [39][40] - The company has prioritized returning capital to shareholders, with significant share repurchases and dividend growth over the past decade [39][40] Future Outlook - The company remains optimistic about its growth prospects, with expectations of strong EPS growth driven by improved performance in developed markets and continued growth in emerging markets [41] - Mondelēz is committed to maintaining a strong balance sheet while executing its growth strategies across various markets [41] Additional Important Insights - Consumer trends indicate a growing preference for snacking, with consumers snacking more than 3.5 times a day and showing interest in new flavors [4][5] - The company is focusing on health-conscious products and premium offerings to cater to evolving consumer preferences [15][16] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Mondelēz International's commitment to growth and adaptation in a challenging market environment.

CAGNY 2026 A PROVEN GROWTH MODEL, POSITIONED TO REACCELERATE GROWTH February 17, 2026 FORWARD-LOOKING STATEMENTS This presentation and accompanying prepared remarks contain forward-looking statements. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws. Words, and variations of words, such as "will," "may," "expect," "would," "could," "might," "intend," "plan," "believe," "likely," "estimate," "anticipate," "objective," " ...

Core Insights - Mondelēz International has appointed Luca Zaramella as Chief Operating Officer and Chief Financial Officer, effective February 1, 2026 [1][2] - Zaramella will oversee the company's commercial operations across four geographical regions, as well as corporate sales, marketing, and supply chain functions [1] - The company is currently searching for a successor for the CFO position and will announce it at a later date [1] Company Overview - Mondelēz International reported net revenues of approximately $36.4 billion for 2024, positioning itself as a leader in the snacking industry [3] - The company operates in over 150 countries and features iconic brands such as Oreo, Ritz, and Cadbury Dairy Milk [3] - Mondelēz is recognized as a member of the Dow Jones Best-in-Class North America and World Indices [3] Leadership Insights - Dirk Van de Put, the Chair and CEO, expressed confidence in Zaramella's ability to enhance operational excellence and accelerate performance amid a dynamic environment [2] - Zaramella has been with Mondelēz since 2018 as CFO, contributing to the development of the company's strategic growth framework and financial algorithm [2] - He has extensive experience in various senior roles across Latin America, Europe, and North America [2][3]

Core Viewpoint - Oakmark Global Fund's fourth-quarter 2025 investor letter highlights its strong performance and investment strategy, focusing on long-term capital appreciation through a diverse portfolio of U.S. and non-U.S. companies, with a notable emphasis on Mondelez International, Inc. [1] Group 1: Fund Performance - In the fourth quarter, Oakmark Global Fund (Investor Class) achieved a return of 5.23%, surpassing the benchmark MSCI World Index's gain of 3.12% [1] Group 2: Mondelez International, Inc. Overview - Mondelez International, Inc. (NASDAQ:MDLZ) is identified as a leading global snacking company with significant market shares in crackers, cookies, and chocolate, featuring well-known brands such as Cadbury, Milka, Toblerone, Oreo, and Ritz [3] - As of January 13, 2026, Mondelez's stock closed at $55.94 per share, with a one-month return of 3.94% and a 52-week decline of 1.24%. The company's market capitalization stands at $72.383 billion [2] Group 3: Investment Thesis on Mondelez - The fund believes Mondelez's strong pricing power and potential relief from rising commodity costs will enhance its margins, despite current margin pressures due to commodity inflation [3] - The current market conditions have allowed the fund to acquire Mondelez shares at a discounted valuation compared to historical levels, peers, and the broader market [3] Group 4: Hedge Fund Interest - Mondelez International, Inc. was held by 50 hedge fund portfolios at the end of the third quarter, an increase from 48 in the previous quarter, indicating growing interest among institutional investors [4]

Core Viewpoint - Mondelēz International, Inc. is set to release its fourth quarter 2025 financial results on February 3, 2026, and will host a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter of 2025 will be released on February 3, 2026, at 4:05 p.m. ET [1]. - A conference call will follow at 5:00 p.m. ET on the same day to discuss the results [1]. Group 2: Participation Details - Investors and analysts can participate in the conference call by calling 800-245-3047 from the United States or 203-518-9765 from other locations [2]. - Participants are advised to dial in approximately 10 minutes before the call starts to ensure timely access [2]. - A listen-only webcast will be available on the company's website [2]. Group 3: Replay Information - A replay of the conference call will be available until February 10, 2026, by calling 800-839-9302 from the United States or 402-220-6082 from other locations [3]. - The access code for both the conference call and its rebroadcast is MDLZQ425 [3]. - An archive of the webcast will also be available on the company's website [3]. Group 4: Company Overview - Mondelēz International operates in over 150 countries and reported net revenues of approximately $36.4 billion in 2024 [4]. - The company is known for its iconic brands, including Oreo, Ritz, Clif Bar, and Cadbury Dairy Milk [4]. - Mondelēz International is recognized as a member of the Dow Jones Best-in-Class North America and World Indices [4].

Core Insights - Mondelez International, Inc. is a leading global snack food company with a market cap of $69.2 billion, operating in over 150 countries and owning iconic brands like Oreo and Cadbury [1] Financial Performance - Analysts expect Mondelez to report an adjusted profit of $0.70 per share for the fourth quarter, reflecting a 7.7% increase from $0.65 per share in the same quarter last year [2] - For fiscal 2025, adjusted EPS is projected to be $2.90, a decrease of 13.7% from $3.36 in 2024, but is expected to rebound to $3.14 per share in fiscal 2026, marking an 8.3% year-over-year increase [3] Stock Performance - Mondelez's stock has declined by 10.2% over the past 52 weeks, underperforming compared to the Consumer Staples Select Sector SPDR Fund's 1.3% decline and the S&P 500 Index's 16.2% gain [4] - The underperformance is attributed to rising input costs, weakening consumer demand, and downward revisions to earnings outlook, particularly due to inflation in cocoa prices and other raw materials [5] Analyst Ratings - The stock holds a consensus "Moderate Buy" rating, with 14 "Strong Buys," three "Moderate Buys," six "Holds," and one "Strong Sell" among 24 analysts [6] - The mean price target for Mondelez is $68.30, indicating a potential upside of 27.1% from current price levels [6]

Core Insights - Mondelez International, Inc. (MDLZ) is valued at a market cap of $74.9 billion and operates in over 150 countries, focusing on premium snacking products like biscuits, chocolates, and candies [1] Financial Performance - In the third quarter, Mondelez reported a 5.9% increase in net revenue, with organic sales up 3.4% driven by price increases, but volumes suffered and margins were pressured due to high cocoa and input costs [4] - Adjusted EPS fell 24.2% year over year to $0.73, and operating income decreased 35.5% from the previous year to $744 million [4] - For the current fiscal year, analysts expect MDLZ's EPS to decline 12.8% year over year to $2.93 [5] Stock Performance - Over the past year, MDLZ shares have declined 17.2%, underperforming the S&P 500 Index, which has surged 17.4% [2] - Year-to-date, the stock is down 3.3%, while the benchmark index has gained 16% [2] - The stock has also trailed the First Trust Nasdaq Food & Beverage ETF's 14.4% loss over the past 52 weeks [3] Analyst Ratings - Among 26 analysts covering the stock, the consensus rating is a "Moderate Buy," with 14 "Strong Buy," three "Moderate Buy," eight "Hold," and one "Strong Sell" rating [5] - The mean price target of $71.56 suggests a 23.8% potential upside from current price levels, while the Street-high price target of $85 indicates an upside potential of 47.1% [6]