Mondelez Q1 2021 Earnings Report
Key Takeaways
Mondelēz International reported a strong first quarter in 2021, with net revenues up by 7.9% driven by organic net revenue growth of 3.8%. The company saw improvements across emerging markets and healthy demand in developed markets, with diluted EPS at $0.68, up 33.3%, and adjusted EPS at $0.77, up 10.6% on a constant-currency basis. The company also generated $699 million in free cash flow and returned $1.5 billion to shareholders.
Net revenues increased by 7.9%, driven by Organic Net Revenue growth of 3.8%, favorable currency, and acquisitions.
Diluted EPS increased 33.3% to $0.68, while Adjusted EPS rose 10.6% to $0.77 on a constant-currency basis.
Operating activities provided $915 million in cash, resulting in Free Cash Flow of $699 million.
The company returned $1.5 billion to shareholders through cash dividends and share repurchases.
Mondelez
Mondelez
Mondelez Revenue by Geographic Location
Forward Guidance
Mondelēz International anticipates Organic Net Revenue to grow by 3%+ and Adjusted EPS to increase at a high single-digit rate (at cst FX) with Free Cash Flow expected to be $3B+ in fiscal year 2021.
Positive Outlook
- Organic Net Revenue Growth 3%+
- Adjusted EPS Growth (at cst FX) High single-digit
- Free Cash Flow $3B+
- Company estimates currency translation would increase 2021 net revenue growth by approximately 2%
- Company estimates a positive $0.10 impact to Adjusted EPS from currency translation
Challenges Ahead
- Outlook is provided in the context of greater than usual volatility as a result of COVID-19.
- Uncertainty about the magnitude, duration, geographic reach, impact on the global economy and related current and potential travel restrictions of the COVID-19 pandemic
- The current, and uncertain future, impact of the COVID-19 pandemic on the company’s business, growth, reputation, prospects, financial condition, operating results (including components of the company’s financial results), cash flows and liquidity
- Risks from operating globally including in emerging markets
- Changes in currency exchange rates, controls and restrictions
Revenue & Expenses
Visualization of income flow from segment revenue to net income