Jun 30, 2024

Mondelez Q2 2024 Earnings Report

Mondelēz International's Q2 2024 performance was marked by a decrease in net revenues, offset by organic net revenue growth and significant progress in adjusted EPS.

Key Takeaways

Mondelēz International reported a decrease in net revenues by 1.9%, but organic net revenue grew by 2.5%. Diluted EPS decreased by 34.8% to $0.45, while adjusted EPS increased by 25.0% on a constant currency basis to $0.86. The company's cash flow generation remained strong, and it increased its quarterly dividend by 11%.

Net revenues decreased by 1.9%, while Organic Net Revenue grew by 2.5%.

Diluted EPS decreased by 34.8% to $0.45, but Adjusted EPS increased by 25.0% on a constant currency basis to $0.86.

Cash provided by operating activities increased to $2.1 billion year-to-date, and Free Cash Flow was $1.5 billion.

The company announced an 11% increase to its quarterly dividend.

Total Revenue
$8.34B
Previous year: $8.51B
-1.9%
EPS
$0.86
Previous year: $0.76
+13.2%
Organic Net Revenue Growth
2.5%
Previous year: 15.8%
-84.2%
Gross Profit
$2.8B
Previous year: $3.35B
-16.6%
Cash and Equivalents
$1.4B
Previous year: $1.48B
-5.6%
Free Cash Flow
$1.48B
Previous year: $1.48B
+0.1%
Total Assets
$73.1B
Previous year: $72B
+1.5%

Mondelez

Mondelez

Mondelez Revenue by Geographic Location

Forward Guidance

Mondelēz International expects Organic Net Revenue growth to be at the upper end of 3 to 5 percent and high single-digit Adjusted EPS growth on a constant currency basis. The company expects 2024 Free Cash Flow of $3.5+ billion.

Positive Outlook

  • Organic Net Revenue growth expected at the upper end of 3 to 5 percent.
  • High single-digit Adjusted EPS growth on a constant currency basis is anticipated.
  • Free Cash Flow is projected to be $3.5+ billion.
  • Completion of European pricing actions.
  • Addition of new value offerings in the U.S.

Challenges Ahead

  • Currency translation would decrease 2024 net revenue growth by approximately 1.5 percent.
  • Currency translation is expected to negatively impact Adjusted EPS by $0.09.
  • Outlook is provided in the context of greater than usual volatility due to geopolitical uncertainty.
  • Weakness in macroeconomic conditions in key markets.
  • Volatility of commodity and other input costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income