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Sep 30, 2023

Mondelez Q3 2023 Earnings Report

Mondelez's Q3 2023 earnings showcased strong organic revenue growth and increased profitability.

Key Takeaways

Mondelez International reported a strong Q3 2023, with net revenues up by 16.3% driven by a 15.7% increase in Organic Net Revenue. Diluted EPS rose by 84.6% to $0.72, while adjusted EPS increased by 16.7% on a constant currency basis to $0.82. The company is raising its Organic Net Revenue outlook to 14-15% and Adjusted EPS growth outlook to approximately 16%.

Net revenues increased by 16.3%, driven by Organic Net Revenue growth of 15.7%.

Diluted EPS increased 84.6% to $0.72; Adjusted EPS increased 16.7% on a constant currency basis to $0.82.

Free Cash Flow was $2.4 billion, up $0.5 billion versus prior year.

The company is raising Organic Net Revenue outlook to 14% to 15% and Adjusted EPS growth outlook to approximately 16%.

Total Revenue
$9.03B
Previous year: $7.76B
+16.3%
EPS
$0.82
Previous year: $0.74
+10.8%
Organic Net Revenue Growth
15.7%
Previous year: 12.1%
+29.8%
Gross Profit
$3.49B
Previous year: $2.61B
+33.7%
Cash and Equivalents
$1.61B
Previous year: $2.2B
-26.7%
Free Cash Flow
$2.37B
Previous year: $313M
+657.2%
Total Assets
$70.9B
Previous year: $68B
+4.2%

Mondelez

Mondelez

Mondelez Revenue by Geographic Location

Forward Guidance

Mondelēz International is updating its 2023 fiscal outlook and now expects 14 to 15 percent Organic Net Revenue growth versus the prior outlook of 12+ percent. The company's expectation for Adjusted EPS growth on a constant currency basis is now approximately 16 percent versus the prior outlook of 12+ percent. The company's Free Cash Flow outlook remains at $3.3+ billion.

Positive Outlook

  • Raising Organic Net Revenue outlook to 14% to 15%.
  • Raising Adjusted EPS growth outlook to ~16%.
  • Free Cash Flow outlook remains at $3.3+ billion.
  • Strong year-to-date performance.
  • Category attractiveness provides confidence.

Challenges Ahead

  • Currency translation would decrease 2023 net revenue growth by approximately 4 percent.
  • Currency translation with a negative $0.15 impact to Adjusted EPS.
  • Outlook is provided in the context of greater than usual volatility.
  • Geopolitical uncertainty.
  • Unpredictability of future changes in currency exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income