Mondelez International, Inc. (MDLZ) Barclays Global Consumer Staples Conference (Transcript)

Company and Industry Overview * Company: Mondelez International, Inc. (NASDAQ: MDLZ) * Industry: Consumer Staples, specifically chocolates, biscuits, and baked snacks Core Views and Arguments * Long-term Strategy: Mondelez remains committed to its long-term strategy of becoming the global leader in chocolates, biscuits, and baked snacks. This strategy focuses on growing iconic brands, leveraging geographical opportunities, and targeting premium segments within these categories. * Consumer Behavior Shifts: The company acknowledges shifts in consumer behavior due to COVID-19 and inflation, necessitating tactical adjustments to promotional techniques and cost management. * Growth Outlook: Mondelez expects strong growth over the next 5-10 years, driven by emerging markets and premium segments. The company aims to maintain or increase market share and deliver a reasonable financial performance in 2025, positioning itself for significant growth in 2026. Key Financials and Metrics * Organic Net Sales Growth: Mondelez reaffirmed its guidance for 3-5% year-over-year organic net sales growth, with acceleration expected in the second half of the year. * Profitability: The company reported material profit increases year-over-year, driven by favorable cocoa procurement and increased flexibility to activate promotions. * Cocoa Inflation: Mondelez expects cocoa prices to normalize in 2025, allowing for improved profitability in 2026. Strategic Initiatives * Promotional Techniques: Mondelez plans to adjust promotional techniques and RGM strategies to address consumer softness and ensure targeted investments. * Cost Management: The company aims to reduce costs through non-working media optimization, procurement initiatives, and negative overhead growth. * Productivity: Mondelez is focused on increasing productivity across various areas, including marketing, procurement, and supply chain. * Emerging Markets: The company is prioritizing emerging markets, particularly India, China, Brazil, and Mexico, for growth and expansion. * Acquisitions: Mondelez continues to pursue bolt-on acquisitions in core categories and adjacent markets, with a focus on adding scale and revenue synergies. Other Important Points * Europe: Mondelez successfully completed pricing discussions in Europe and is optimistic about the region's performance in the second half of the year. * U.S. Biscuit Market: The company is seeing signs of improvement in the U.S. biscuit market, with stabilization in volume growth and improving market share. * Partnerships: Mondelez's partnership with Coca-Cola for Oreo is expected to drive significant volume growth and enhance brand loyalty. * Cakes and Pastries: The company is excited about the cakes and pastries category, which offers significant growth opportunities and a natural extension of its biscuit business.