Mondelez Posts In-Line Q4 Sales, Meets EPS Estimates

Mondelez International (NASDAQ: MDLZ)

Q4 CY2024 Key Metrics:

* Revenue: $9.60 billion (in line with estimates of $9.63 billion)
* Adjusted EPS: $0.65 (in line with estimates of $0.65)
* Organic Net Revenue Growth: 5% (exceeding estimates)
* Adjusted EPS Decline: 10% on constant currency basis (missing estimates due to cocoa cost inflation)
* Operating Margin: 16.8% (up from 12.8% last year)
* Free Cash Flow Margin: 11% (down from 13.2% last year)
* Organic Revenue Growth: 5.2% year-over-year (declined from 9.8% in the previous quarter)
* Sales Volumes: Flat year-over-year

Company Overview:

Founded as Nabisco in 1903, Mondelez is a global packaged snacks giant known for brands like Oreo, Cadbury, Toblerone, Ritz, and Trident.

Sales Growth:

* Consistent sales growth at 8.3% compounded annual growth rate over the past three years
* Modest 2.8% revenue growth projected for the next 12 months, indicating potential demand headwinds

Volume Growth:

* Sales volumes remained relatively stable over the past two years
* Minimal volume growth, suggesting organic revenue growth primarily driven by price increases

Key Takeaways:

* Q4 results largely met expectations, with revenue and EPS in line with estimates
* Outlook for 2025 tempered by high cocoa costs, causing a forecasted 10% EPS decline
* Stock reacted negatively, falling 3.8% post-earnings

Investment Considerations:

Consider factors such as valuation, business quality, and recent earnings to make an informed investment decision. Access our comprehensive research report for a detailed analysis.