FY'24 Net Revenues +1.2%, Organic Net Revenues¹ +4.3%, Volume/Mix -1.0%

FY'24 Diluted EPS declined -5.5% to $3.42

FY'24 Adjusted EPS¹ on a constant currency basis up +13.0% to $3.36

FY'24 Cash provided by operating activities was $4.9 billion

FY'24 Free Cash Flow¹ was $3.5 billion

FY'24 Return of capital to shareholders was $4.7 billion

Company provides FY'25 outlook

CHICAGO, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (Nasdaq: MDLZ) today reported its fourth quarter and full year 2024 results.

"Fiscal 2024 was another strong year of performance for our company. We delivered balanced top-line growth, strong earnings, and robust free cash flow generation, while returning significant capital back to shareholders," said Dirk Van de Put, Chair and Chief Executive Officer. "As we transition into 2025, we remain focused on executing against our long-term growth strategy and delivering on our chocolate business playbook to navigate unprecedented cocoa cost inflation. Our teams are well-equipped to stay agile and take the necessary actions to navigate this challenging operating environment. We believe we are solidly positioned for attractive long-term top- and bottom-line growth."

Net Revenue

• Net revenues increased 1.2 percent as Organic Net Revenue growth of 4.3 percent and incremental net revenue from our acquisition of Evirth was partially offset by unfavorable currency-related items and the impact of our 2023 divestiture of the developed market gum business. Organic Net Revenue growth was driven by higher net pricing, partially offset by unfavorable volume/mix.

• Gross profit increased $493 million, and gross profit margin increased 90 basis points to 39.1 percent primarily driven by favorable year-over-year change in mark-to-market impacts from derivatives and an increase in Adjusted Gross Profit¹ margin, partially offset by lapping the operating results from the developed market gum business divested in 2023 and costs incurred for the ERP Systems Implementation program. Adjusted Gross Profit increased $674 million at constant currency, and Adjusted Gross Profit margin increased 30 basis points to 37.8 percent due primarily to higher pricing and lower manufacturing costs driven by productivity, partially offset by higher raw material and transportation costs.

• Operating income increased $843 million, and operating income margin was 17.4 percent, up 210 basis points primarily due to favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, higher Adjusted Operating Income margin and lower divestiture-related costs. These favorable items were partially offset by higher intangible asset impairment charges, lapping prior-year gain and operating results from the developed market gum business divested in 2023 and costs incurred for the ERP Systems Implementation program. Adjusted Operating Income increased $456 million at constant currency while Adjusted Operating Income margin increased 30 basis points to 16.2 percent, driven primarily by higher net pricing, lower manufacturing costs driven by productivity and overhead leverage, partially offset by higher input cost inflation.

• Diluted EPS was $3.42, down 5.5 percent, primarily due to lapping prior-year gain on marketable securities, lapping prior-year gain on equity method investment transactions, 2024 net loss on equity method transactions including an impairment, lapping prior-year gain and operating results from the developed market gum business divested in 2023, higher intangible asset impairment charges and costs incurred for the ERP Systems Implementation program. These unfavorable items were partially offset by an increase in Adjusted EPS, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, favorable year-over-year change in mark-to-market impacts from commodity and currency derivatives, lower divestiture-related costs, favorable year-over-year change in initial impacts from enacted tax law changes and lapping prior-year impact from European Commission legal matter.

• Adjusted EPS was $3.36, up 13.0 percent on a constant currency basis driven by strong operating gains, fewer shares outstanding, lower taxes, lower interest expense and higher benefit plan non-service income, partially offset by lapping prior year dividend income related to our former KDP investment.

• Capital Return: The company returned $4.7 billion to shareholders in cash dividends and share repurchases.

• Net revenues increased 3.1 percent as Organic Net Revenue growth of 5.2 percent and incremental net revenue from our acquisition of Evirth was partially offset by unfavorable currency-related items and lapping prior-year sales from a short-term distributor agreement related to the developed market gum business divested in 2023. Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.

• Gross profit increased $241 million, and gross profit margin increased 130 basis points to 38.6 percent primarily driven by favorable year-over-year change in mark-to-market impacts from derivatives, partially offset by an decrease in Adjusted Gross Profit¹ margin. Adjusted Gross Profit decreased $440 million at constant currency, and Adjusted Gross Profit margin decreased 650 basis points to 31.5 percent due primarily to higher raw material and transportation costs, partially offset by higher pricing and lower manufacturing costs driven by productivity.

• Operating income increased $418 million, and operating income margin was 16.8 percent, up 400 basis points primarily due to favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, lapping prior-year impact from the European Commission legal matter, lower remeasurement loss of net monetary position and lower divestiture-related costs. These favorable items were partially offset by lower Adjusted Operating Income margin, lapping prior-year gain from the developed market gum business divested in 2023 and costs incurred for the ERP Systems Implementation program. Adjusted Operating Income decreased $396 million at constant currency while Adjusted Operating Income margin decreased 510 basis points to 10.0 percent, driven primarily by higher input cost inflation, partially offset by higher net pricing, overhead leverage and lower manufacturing costs driven by productivity.

• Diluted EPS was $1.30, up 85.7 percent, primarily due to favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, gain on equity method investment transactions, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, favorable year-over-year change in initial impacts from enacted tax law changes, lower remeasurement loss on of net monetary position and lower divestiture-related costs. These favorable items were partially offset by a decrease in Adjusted EPS, lapping prior-year gain from the developed market gum business divested in 2023 and costs incurred for the ERP Systems Implementation program.

• Adjusted EPS was $0.65, down 15.9 percent on a constant currency basis driven by a decrease in operating results and lower equity method investment earnings, partially offset by lower taxes and fewer shares outstanding.

Mondelēz International provides its outlook on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including the impact of foreign exchange. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details.

For 2025, the company expects Organic Net Revenue growth to be approximately 5 percent. The company expects Adjusted EPS to decline approximately 10% on a constant currency basis due to unprecedented cocoa cost inflation. The company also expects 2025 Free Cash Flow of $3+ billion. The company estimates currency translation would decrease 2025 net revenue growth by approximately 2.5 percent³ with a negative $0.12 impact to Adjusted EPS³.

Outlook is provided in the context of greater than usual volatility, including due to geopolitical, trade and regulatory uncertainty and commodity prices. This outlook does not reflect any imposition of import tariffs by the U.S. and potential retaliatory actions taken by other countries, as the tariff and trade environment is uncertain and rapidly evolving at this time.

Conference Call

Mondelēz International will host a conference call for investors with accompanying slides to review its results at 5 p.m. ET today. A listen-only webcast will be provided at www.mondelezinternational.com. An archive of the webcast will be available on the company's web site.

About Mondelēz International

Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2024 net revenues of approximately $36 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Standard and Poor's 500, Nasdaq 100 and Dow Jones Sustainability Index.

Visit www.mondelezinternational.com or follow the company on Twitter at www.twitter.com/MDLZ.

End Notes

1. Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Adjusted EPS incl. developed market gum, Free Cash Flow and presentation of amounts in constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information.
2. Earnings attributable to Mondelēz International.
3. Currency estimate is based on published rates from XE.com on January 28, 2025.

Emerging markets consist of the Latin America region in its entirety; the Asia, Middle East and Africa region excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.

Developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the Asia, Middle East and Africa region.

Forward-Looking Statements

This press release contains "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words, and variations of words, "will,” "may,” "expect,” "would,” "could,” "might,” "intend,” "plan,” "believe,” "likely,” "estimate,” "anticipate,” "objective,” "predict,” "project,” "drive,” "seek,” "aim,” "target,” "potential,” "commitment,” "outlook,” "continue” or any other similar words.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control and are amplified by current and potential trade and tariff actions affecting the countries where we operate. Important factors that could cause our actual results or performance