• Organic Net Revenue Growth: 4.3% for the year.
• Adjusted Gross Profit Dollar Growth: 5.1% for the year.
• Adjusted EPS Growth: 13% for the year.
• Free Cash Flow: $3.5 billion for the year.
• Capital Return to Shareholders: $4.7 billion through buybacks and dividends.
• Revenue Growth in Emerging Markets: 6.2% for the year.
• Revenue Growth in Developed Markets: 3.2% for the year.
• Chocolate Revenue Growth: 7.4% for the year.
• Biscuits Revenue Growth: 1.7% for the year.
• Gum and Candy Revenue Growth: More than 7% for the year.
• Market Share Gain: Gained share in 50% of the revenue base.
• New Share Repurchase Authorization: $9 billion from 2025 to 2027.

• Warning! GuruFocus has detected 3 Warning Sign with MDLZ.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mondelez International Inc (NASDAQ:MDLZ) delivered balanced top-line growth with a mid-single-digit increase across both developed and emerging markets.
• The company achieved gross profit dollar growth in the mid-single digits despite continuing input cost inflation, driven by cost discipline and sound pricing.
• Mondelez International Inc (NASDAQ:MDLZ) generated strong free cash flow of $3.5 billion, including a settlement with the EU commission.
• The company returned $4.7 billion to shareholders through buybacks and dividends, demonstrating a strong commitment to capital return.
• Mondelez International Inc (NASDAQ:MDLZ) made significant progress toward sustainability objectives, with 90% of cocoa volume sourced through its Cocoa Life program and a 38% reduction in carbon emissions since 2018.

Negative Points

• Mondelez International Inc (NASDAQ:MDLZ) faces unprecedented cocoa cost inflation, impacting profitability and requiring strategic adjustments.
• The company expects an adjusted EPS decline of approximately 10% in 2025 due to high cocoa costs.
• North America's biscuit category is experiencing softness, with limited pricing possibilities and increased elasticities.
• The company anticipates potential headwinds from new executive orders imposing tariffs on US imports from Mexico and Canada.
• Mondelez International Inc (NASDAQ:MDLZ) is planning for elevated cocoa prices to persist into 2025, which may necessitate further pricing actions.

Q & A Highlights

Q: Given the recent cocoa price increases, how does this affect Mondelez's chocolate strategy, particularly in Europe? A: Dirk Van De Put, CEO, emphasized that chocolate remains a robust category with strong brand loyalty. Mondelez aims to protect category health, market share, and brand investment despite cocoa price volatility. The company plans to maintain key price points and implement strong revenue growth management strategies. In Europe, consumer confidence is stable, and Mondelez is optimistic about its chocolate business, expecting pricing to gradually improve profitability as it takes hold in 2025.

Q: Can you discuss the 2025 outlook for EPS and margins, and any considerations for 2026? A: Luca Zaramella, CFO, noted that Mondelez expects EPS to decline in 2025 due to high cocoa costs but aims for EPS growth in 2026. The company plans to manage costs aggressively and implement multiple pricing actions. Mondelez is prepared for various scenarios, including sustained high cocoa prices, and remains committed to EPS growth regardless of cocoa price movements.

Q: How do you view the health of the biscuit category in North America, and what are your expectations for 2025? A: Dirk Van De Put, CEO, acknowledged that the US biscuit category is currently soft, with changing consumer behaviors and increased elasticity. Mondelez plans to focus on volume growth through lower price points and channel expansion. The company expects solid P&L performance in North America in 2025, driven by strong activations and underdeveloped channel penetration.

Q: What is Mondelez's perspective on the current elevated cocoa prices, and how does it impact future pricing decisions? A: Luca Zaramella, CFO, expressed difficulty in understanding the current high cocoa prices, despite expectations of increased supply. Mondelez plans for elevated cocoa prices in 2025 and 2026, with a strategy to implement multiple pricing waves. The company remains flexible and will adjust pricing based on future cocoa market developments.

Q: Can you elaborate on Mondelez's supply chain productivity program for 2025? A: Dirk Van De Put, CEO, stated that Mondelez aims for a 4% gross productivity improvement in its supply chain, marking one of the highest productivity programs in the company's history. This target reflects efforts to manage costs and improve efficiency amid challenging market conditions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.