Overview of Mondelēz International’s Financial Performance

Mondelēz International, a global snack food company, has reported its financial results for the year ended December 31, 2024. The company saw mixed performance, with net revenues increasing slightly but profits declining compared to the prior year.

Revenue and Profit Trends

Mondelēz’s net revenues were approximately $36.4 billion in 2024, up 1.2% from $36.0 billion in 2023. This increase was driven by higher pricing, which offset unfavorable currency impacts and the impact of the company’s divestiture of its developed market gum business in 2023. On an organic basis, which excludes the impact of acquisitions, divestitures and currency, net revenues grew 4.3% in 2024.

However, the company’s profitability declined in 2024. Diluted earnings per share (EPS) attributable to Mondelēz fell 5.5% to $3.42, primarily due to lapping prior-year gains on investments and divestitures, as well as higher costs related to the company’s ERP system implementation program. Adjusted EPS, which excludes certain one-time items, increased 9.1% to $3.36.

Regional Performance

Mondelēz operates in four geographic regions: Latin America, Asia, Middle East & Africa (AMEA), Europe, and North America.

In Latin America, net revenues declined 1.6% in 2024 due to unfavorable currency impacts and volume declines, partially offset by higher pricing. Segment operating income was flat.

AMEA net revenues grew 3.1%, driven by higher pricing and the impact of an acquisition, partially offset by unfavorable currency. Segment operating income increased 7.1%.

Europe net revenues increased 3.5%, with higher pricing offsetting unfavorable volume/mix, the impact of divestitures, and currency headwinds. Segment operating income rose 4.6%.

North America net revenues declined 1.5%, impacted by the gum business divestiture and flat volume/mix, partially offset by higher pricing. However, segment operating income increased 19.1% due to cost savings.

Strengths and Weaknesses

A key strength for Mondelēz is its portfolio of iconic global and local snack brands, which have allowed the company to maintain pricing power and drive revenue growth despite a challenging cost environment. The company’s geographic diversification also provides some protection, as strong performance in regions like AMEA and Europe offset weaker results in Latin America and North America.

However, Mondelēz continues to face significant cost inflation, particularly for key ingredients like cocoa. While the company has been able to raise prices, it has not been able to fully offset the higher input costs, pressuring profit margins. The company’s ERP system implementation program has also added significant costs.

Additionally, Mondelēz’s divestiture of its developed market gum business in 2023 has reduced its revenue base, though the company expects this to improve profitability in the long run.

Outlook and Risks

Looking ahead, Mondelēz expects the challenging macroeconomic environment to persist, with continued inflation, supply chain disruptions, and geopolitical uncertainty. The company anticipates ongoing volatility in consumer demand.

To mitigate these risks, Mondelēz is focused on driving operational excellence, accelerating consumer-centric growth, and scaling sustainable snacking. The company also continues to monitor and respond to trade and regulatory changes, such as potential new tariffs, that could impact its business.

Overall, Mondelēz’s strong brand portfolio and geographic diversification provide a solid foundation, but the company will need to navigate the current inflationary pressures and investment costs to deliver consistent top- and bottom-line growth going forward.