Mondelez is implementing a new generative AI tool to reduce marketing content production costs by 30% to 50%. This strategic move underscores the company's commitment to leveraging advanced technology to enhance operational efficiency. By cutting costs, Mondelez aims to maintain its competitive position in the market and improve its financial performance. The upcoming earnings report could significantly influence Mondelez's stock price. If the actual earnings surpass expectations, the stock might experience ...

Financial Data and Key Metrics Changes - Sales from continuing operations in Q4 2024 were approximately $180 million, with organic sales up 5% year-over-year after adjusting for foreign exchange and discontinued revenue streams [10][12] - Adjusted diluted earnings per share for Q4 were $0.43, with adjusted EBITDA from continuing operations at nearly $29 million [11] - For the full year, sales from continuing operations were approximately $688 million, with adjusted diluted earnings per share of $1.35, a 31% increase compared to the prior year [12][11] - The company generated $83 million of free cash flow in 2024, an increase of almost $70 million compared to the previous year [14] Business Line Data and Key Metrics Changes - The enteral feeding portfolio grew almost 12% organically in Q4, reaffirming the company's leading position in short-term, long-term, and neonatal feeding [15] - The pain management and recovery portfolio saw normalized organic sales down approximately 3% in Q4, but a sequential growth of 13% compared to Q3 [17][18] - The interventional pain business posted high single-digit growth in Q4, supported by increased procedural volumes [19] Market Data and Key Metrics Changes - The company served over two million patients in 2024 through its enteral feeding and pain management solutions [9] - The NeoMed product line benefited from strong demand for ENFit conversions in North America, while the Ambit product grew more than 30% in each quarter of 2024 [16][21] Company Strategy and Development Direction - The company is focused on a three-year transformation process, having completed the divestiture of its respiratory health business [8][26] - Key transformation priorities include optimizing the organization, transforming the product portfolio, enhancing operating profitability, and efficient capital allocation [25] - Starting in Q1 2025, the company will report under three operating segments to improve transparency and guide internal capital allocation decisions [29][32] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging market environment for some product categories in 2025, with expected net sales in the range of $665 million to $685 million [33][34] - The guidance reflects currency headwinds and pricing pressures, with expectations for flat to low single-digit organic growth in the Pain Management and Recovery segment [34][35] - Management expressed confidence in reigniting margin expansion in 2026 as macroeconomic uncertainties are resolved [44] Other Important Information - The company exited its deferred prosecution agreement with the DOJ in January 2025, marking a significant milestone in its transformation journey [27] - The company has a strong balance sheet with $108 million in cash and $135 million in debt as of December 31, 2024 [14] Q&A Session Summary Question: Insights on 2025 margin improvement pause - Management indicated that the 2025 guidance is conservative due to macroeconomic uncertainties, with expectations to finish 2025 at similar revenue levels as previously stated [42][44] Question: Progress on business evaluation and urgency - Management acknowledged the connection between the impairment charge and the evaluation process, noting that volume growth was achieved but offset by pricing dynamics [48] Question: Guidance details and potential upside/downside - Upside potential includes tariff certainty and demand growth from competitor back orders, while downside risks are primarily macroeconomic [54][57] Question: Cash flow expectations for 2025 - Management expects free cash flow in 2025 to be similar to 2024, with ongoing opportunities for improvement in working capital [62] Question: Product innovations for 2025 - Management anticipates launching one to three product innovations in the Specialty Nutrition Systems segment within the next 12 months [66][68]