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Jun 30, 2023

Mondelez Q2 2023 Earnings Report

Mondelez International's Q2 2023 results demonstrated broad-based strength across the business, with strong, profitable top-line growth in all regions and categories.

Key Takeaways

Mondelez International reported a strong second quarter in 2023, with net revenues increasing by 17.0% and Organic Net Revenue growth of 15.8%. The company is raising its Organic Net Revenue and Adjusted EPS growth outlook to 12%+

Net revenues increased +17.0% driven by Organic Net Revenue growth of +15.8% with strong Volume/Mix performance in 3 of 4 regions

Diluted EPS was $0.69, up 27.8%; Adjusted EPS was $0.76, up +21.5% on a constant currency basis

Year-to-date cash provided by operating activities was $2.0 billion; Free Cash Flow was $1.5 billion

Announcing +10% increase to quarterly dividend

Total Revenue
$8.51B
Previous year: $7.27B
+17.0%
EPS
$0.76
Previous year: $0.67
+13.4%
Organic Net Revenue Growth
15.8%
Previous year: 13.1%
+20.6%
Gross Profit
$3.35B
Previous year: $2.64B
+27.0%
Cash and Equivalents
$1.48B
Previous year: $1.92B
-23.0%
Free Cash Flow
$1.48B
Previous year: $1.58B
-6.6%
Total Assets
$72B
Previous year: $66B
+9.1%

Mondelez

Mondelez

Mondelez Revenue by Geographic Location

Forward Guidance

Mondelēz International is updating its 2023 fiscal outlook and now expects 12%+ percent Organic Net Revenue growth versus the prior outlook of 10+ percent, which reflects the strength of its year-to-date performance. The company's expectation for Adjusted EPS growth on a constant currency basis is now 12%+ percent versus the prior outlook of 10+ percent. The company's Free Cash Flow outlook remains at $3.3+ billion.

Positive Outlook

  • Raising Organic Net Revenue growth outlook to 12%+
  • Raising Adjusted EPS growth outlook to 12%+
  • Free Cash Flow outlook remains at $3.3+ billion
  • Strong year-to-date performance
  • Category resilience provides confidence

Challenges Ahead

  • Currency translation would decrease 2023 net revenue growth by approximately 2%
  • Currency translation has a negative $0.11 impact to Adjusted EPS
  • Outlook is provided in the context of greater than usual volatility as a result of COVID-19
  • Geopolitical uncertainty
  • Unpredictability of future changes in currency exchange rates

Revenue & Expenses

Visualization of income flow from segment revenue to net income