Mar 31, 2023

Mondelez Q1 2023 Earnings Report

Mondelēz International's Q1 2023 results showcased strong revenue and earnings growth, driven by pricing execution and volume growth.

Key Takeaways

Mondelēz International reported a strong start to 2023 with double-digit net revenue and profit growth in Q1. The results were driven by pricing actions to offset cost inflation and solid volume growth. The company is raising its Organic Net Revenue growth and Adjusted EPS growth outlook for the year.

Net revenues increased by 18.1%, driven by Organic Net Revenue growth of 19.4% with underlying Volume/Mix of 3.2%.

Diluted EPS was $1.52, up 149.2%; Adjusted EPS was $0.89, up 17.3% on a constant currency basis.

Cash provided by operating activities was $1.0 billion, in line with the prior year; Free Cash Flow was $0.9 billion, down -$0.1 billion versus prior year.

The company is raising both Organic Net Revenue growth outlook to 10%+ and Adjusted EPS growth outlook to 10%+

Total Revenue
$9.17B
Previous year: $7.76B
+18.1%
EPS
$0.89
Previous year: $0.84
+6.0%
Organic Net Revenue Growth
19.4%
Previous year: 8.6%
+125.6%
Gross Profit
$3.45B
Previous year: $2.98B
+15.5%
Cash and Equivalents
$1.92B
Previous year: $1.95B
-1.5%
Free Cash Flow
$900M
Previous year: $964M
-6.6%
Total Assets
$72.8B
Previous year: $68B
+7.0%

Mondelez

Mondelez

Mondelez Revenue by Geographic Location

Forward Guidance

Mondelēz International updated its 2023 fiscal outlook and now expects 10+% Organic Net Revenue growth and 10+% Adjusted EPS growth on a constant currency basis. The company's Free Cash Flow outlook remains at $3.3+ billion.

Positive Outlook

  • Raising Organic Net Revenue growth outlook to 10%+
  • Raising Adjusted EPS growth outlook to 10%+
  • Free Cash Flow outlook remains at $3.3+ billion
  • Strong Q1 performance
  • Double-digit net revenue and profit dollar growth

Challenges Ahead

  • Currency translation would decrease 2023 net revenue growth by approximately 2%
  • Currency translation would have a negative $0.09 impact to Adjusted EPS
  • Greater than usual volatility as a result of COVID-19
  • Geopolitical uncertainty
  • Input cost inflation

Revenue & Expenses

Visualization of income flow from segment revenue to net income