M
ME NEWS
30 Apr 2025, 07:05
Mondelēz International Q1 2025 Earnings Summary
Mondelēz International reported Q1 2025 earnings with flat revenue growth and a sharp decline in profitability, largely impacted by soaring cocoa costs and mark-to-market losses.
Revenue Performance:
Net Revenues rose slightly by 0.2% YoY to $9.31B, driven by 3.1% organic growth, with price increases (+6.6 pp) offsetting volume/mix decline of -3.5 pp.
Latin America revenues dropped -8.8%, while Europe and AMEA grew by 5.4% and 3.4% respectively.
North America posted a -4.1% revenue decline.
Profitability:
Gross Profit fell by 48.8% YoY to $2.43B, with margins shrinking from 51.1% to 26.1%, primarily due to mark-to-market losses on commodities and currency derivatives.
Operating Income plunged 75.1% to $680M, while Adjusted Operating Income dropped 19.6% to $1.38B.
Diluted EPS fell sharply by 70.2% to $0.31.
Adjusted EPS was $0.74, down 18.3% on a constant currency basis.
Cash Flow & Capital Return:
Operating cash flow was $1.1B, with Free Cash Flow of $815M (down from $1.03B in Q1 2024).
Returned $2.1B to shareholders via buybacks and dividends.
2025 Outlook (non-GAAP):
Reaffirmed ~5% Organic Net Revenue growth.
Adjusted EPS expected to decline by ~10% due to cocoa inflation.
Forecasts $3B+ Free Cash Flow, with minimal FX impact expected on FY results.
The quarter reflects resilience in pricing power amid a volatile cost environment but also highlights pressure on margins from commodity inflation and derivative impacts.
Mondelēz International reported Q1 2025 earnings with flat revenue growth and a sharp decline in profitability, largely impacted by soaring cocoa costs and mark-to-market losses.
Revenue Performance:
Net Revenues rose slightly by 0.2% YoY to $9.31B, driven by 3.1% organic growth, with price increases (+6.6 pp) offsetting volume/mix decline of -3.5 pp.
Latin America revenues dropped -8.8%, while Europe and AMEA grew by 5.4% and 3.4% respectively.
North America posted a -4.1% revenue decline.
Profitability:
Gross Profit fell by 48.8% YoY to $2.43B, with margins shrinking from 51.1% to 26.1%, primarily due to mark-to-market losses on commodities and currency derivatives.
Operating Income plunged 75.1% to $680M, while Adjusted Operating Income dropped 19.6% to $1.38B.
Diluted EPS fell sharply by 70.2% to $0.31.
Adjusted EPS was $0.74, down 18.3% on a constant currency basis.
Cash Flow & Capital Return:
Operating cash flow was $1.1B, with Free Cash Flow of $815M (down from $1.03B in Q1 2024).
Returned $2.1B to shareholders via buybacks and dividends.
2025 Outlook (non-GAAP):
Reaffirmed ~5% Organic Net Revenue growth.
Adjusted EPS expected to decline by ~10% due to cocoa inflation.
Forecasts $3B+ Free Cash Flow, with minimal FX impact expected on FY results.
The quarter reflects resilience in pricing power amid a volatile cost environment but also highlights pressure on margins from commodity inflation and derivative impacts.
