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Yahoo
18-06-2025
- Business
- Yahoo
MDLZ Q1 Deep Dive: Cocoa Inflation Drives Pricing Actions, U.S. Demand Remains Soft
Packaged snacks company Mondelez (NASDAQ:MDLZ) met Wall Street's revenue expectations in Q1 CY2025, but sales were flat year on year at $9.31 billion. Its non-GAAP profit of $0.74 per share was 12.2% above analysts' consensus estimates. Is now the time to buy MDLZ? Find out in our full research report (it's free). Revenue: $9.31 billion vs analyst estimates of $9.31 billion (flat year on year, in line) Adjusted EPS: $0.74 vs analyst estimates of $0.66 (12.2% beat) Adjusted EBITDA: $1.7 billion vs analyst estimates of $1.54 billion (18.2% margin, 10.6% beat) Operating Margin: 7.3%, down from 29.4% in the same quarter last year Organic Revenue rose 3.1% year on year (4.2% in the same quarter last year) Sales Volumes fell 3.5% year on year (-2.1% in the same quarter last year) Market Capitalization: $85.91 billion Mondelez's first quarter was marked by stable sales and a notable profit outperformance, leading to a positive market reaction. Management attributed the quarter's results to effective pricing strategies in response to record cocoa costs, especially within its chocolate segment. CEO Dirk Van de Put explained, 'Our top line grew 3.1% behind strong pricing execution across our chocolate business due to unprecedented input costs for cocoa.' The quarter also saw continued brand loyalty, particularly for core products like Oreo and Cadbury, despite economic pressures causing U.S. consumers to shift toward value-oriented purchases. Looking ahead, Mondelez expects ongoing macroeconomic uncertainty and elevated commodity costs to shape its performance. Management pointed to further pricing actions, product innovation, and targeted activations as key levers for growth, especially in Europe and emerging markets. CFO Luca Zaramella emphasized that 'pricing across the board, whether it is chocolate in developed and emerging markets or biscuits in emerging markets, is absolutely on track,' but cautioned that U.S. consumer confidence is unlikely to rebound quickly. The company plans to maintain agility in its strategy, focusing on both cost discipline and reinvestment should commodity pressures ease. Management cited strong pricing execution in chocolate, continued investment in brand and product innovation, and mixed geographic consumer sentiment as primary factors shaping the quarter's results and ongoing strategy. Cocoa-driven pricing actions: Mondelez implemented significant price increases in its chocolate segment to offset record cocoa costs, with management emphasizing minimal disruption and elasticities in line with expectations. The pricing strategy included tiered pack sizes and protected entry-level price points in key markets. Volume declines from elasticity and destocking: The company experienced a 3.5% volume decline, driven by consumer sensitivity to higher prices, retailer inventory reductions in North America, and seasonal timing shifts related to Easter. Management noted that U.S. biscuit volumes faced additional pressure from lower consumption and value-seeking behavior. Emerging market performance varies: While China and Brazil delivered strong results, India and Southeast Asia saw softer demand due to economic uncertainty and inflation. Management expects emerging markets to accelerate in the second half of the year through distribution gains and targeted promotions. Brand and product innovation: Mondelez launched several notable activations, including Oreo's partnership with Post Malone and the Cadbury Dairy Milk Biscoff bar. These initiatives are part of a broader effort to maintain consumer interest and drive share gains despite external pressures. Agility in cost management: The company delivered ahead-of-schedule productivity improvements, particularly in procurement, and opportunistically secured better input pricing for some commodities. Management indicated that any future margin upside from easing cocoa costs would likely be reinvested to support long-term brand health. Mondelez's outlook is guided by ongoing pricing initiatives, cost discipline, and a focus on adapting to shifting consumer sentiment across regions. Sustained pricing and RGM strategy: Management reiterated its commitment to a revenue growth management (RGM) approach—offering a range of pack sizes and price points tailored to regional consumer needs. The company expects continued pricing actions to offset commodity pressures, with elasticity and consumer response closely monitored, especially in Europe and emerging markets. Consumer confidence and U.S. demand: Mondelez remains cautious about U.S. consumer sentiment, noting ongoing value-seeking behaviors and lower frequency of snacking purchases. Management does not anticipate a near-term rebound in U.S. demand, and plans to focus on affordable formats, promotional activations, and multi-pack offerings to stabilize share and volumes. Potential margin reinvestment: Should cocoa prices moderate, management intends to reinvest some of the resulting margin improvement into brand support and innovation, rather than prioritizing short-term profit gains. This approach is designed to ensure long-term competitiveness and sustained category health. In the quarters ahead, the StockStory team will be watching (1) how effectively Mondelez sustains its pricing strategy while managing elasticity and consumer pushback, (2) whether volume trends in the U.S. biscuit and chocolate segments stabilize as retailer destocking subsides, and (3) acceleration in emerging market growth, particularly in India and China. The outcome of cocoa price movements and any resulting adjustments to reinvestment priorities will also be key indicators for the company's trajectory. Mondelez currently trades at $66.41, up from $65.58 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
20-05-2025
- Business
- Yahoo
Mondelēz International to Participate at the Deutsche Bank Global Consumer Conference on June 4, 2025
CHICAGO, May 20, 2025 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (Nasdaq: MDLZ) today announced that Dirk Van de Put, Chief Executive Officer and Luca Zaramella, Chief Financial Officer, will participate in a fireside chat session at the Deutsche Bank Global Consumer Conference on Wednesday, June 4, 2025, at 08:30 a.m. CET. A listen-only webcast will be provided at and a replay of the event will also be available on the company's website. About Mondelēz InternationalMondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2024 net revenues of approximately $36.4 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit or follow the company on X at Contact: Tracey Noe (Media) Shep Dunlap (Investors) +1 847 943 5678 +1 847 943 5454 news@ ir@ Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Why Mondelez International, Inc. (MDLZ) Surged on Wednesday
We recently published an article titled . In this article, we are going to take a look at where Mondelez International, Inc. (NASDAQ:MDLZ) stands against the other stocks that soared on Wednesday. The stock market finished Wednesday's trading on a lackluster note, with the three major indices finishing mixed, as investors digested news of the US economy's contraction in the first quarter of the year that triggered fears of a possible recession. Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent. Ten firms, on the other hand, managed to record strong gains, thanks to impressive earnings performance and optimistic outlooks for the rest of the year. We have named 10 of the top-performing stocks on Wednesday and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A colourful array of products like candies, chocolates and gums on a supermarket shelf. Mondelez International, Inc. (NASDAQ:MDLZ) grew its share prices by 3.78 percent on Wednesday to close at $68.13 apiece as investors cheered the company's earnings beat and maintained outlook for the rest of the year. In its latest earnings release, Mondelez International, Inc. (NASDAQ:MDLZ) said that its performance for the first quarter of the year provided the company with continued confidence to maintain its full-year 2025 outlook. For this year, the company reaffirmed organic net revenue growth of 5 percent and adjusted earnings per share to decline by approximately 10 percent. The company also expected free cash flow of more than $3 billion. During the first quarter, net income attributable to the company fell by 71 percent to $402 million from $1.412 billion in the same period a year earlier, while revenues were flat at $9.3 billion. 'We delivered solid Q1 2025 results in line with our expectations, driven by strong execution of our growth strategy while navigating unprecedented cocoa cost inflation,' said MDLZ Chairman and CEO Dirk Van de Put. 'We remain committed to delivering against our strategic agenda and staying agile in this volatile operating environment to drive sustainable shareholder value.' Overall MDLZ ranks 9th on our list of the stocks that soared on Wednesday. While we acknowledge the potential of MDLZ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MDLZ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Snacking takes a hit as consumer spending shifts to food staples
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. As consumers rein in spending, the once seemingly unstoppable snacking category is taking a hit. Food giants, including PepsiCo, Mondelēz International and The Campbell's Company, are reporting a slowdown in snack sales as inflation and growing economic uncertainty discourage consumers from purchasing as many cookies, crackers and other treats. Dirk Van de Put, Mondelēz's CEO, told analysts that consumers are purchasing fewer snacks in favor of grocery staples such as meats, vegetables and eggs. In North America, one of the Oreo and Chips Ahoy! maker's biggest markets, net revenues during its most recent quarter dropped 4.1%. 'We see consumers switching to more essentials in grocery, and snacking categories are suffering as a consequence of that,' CEO Dirk Van de Put told analysts. 'What's going on is that the consumer feels very uncertain about the future.' Snacking executives have painted a dour outlook across the food space, with little optimism that things will improve anytime soon. Van de Put told Wall Street he didn't 'expect to see a significant improvement in consumer confidence in the near term in the US.' Last week, PepsiCo's CFO Jamie Caulfield noted consumer sentiment has worsened since February when it reported a slowdown in demand for its snacks and beverages. 'We probably aren't feeling as good about the consumer now as we were a few months ago,' Caulfield said. PepsiCo's snack business has continued to struggle. During its first quarter, PepsiCo said organic revenue in its North American foods business slipped 2%. Executives noted a 'subdued' performance in savory snacks, led by its Frito-Lay business that oversees brands including Doritos and Cheetos. 'Revenue management clearly is becoming more complex as consumers are feeling more challenged with their disposable income,' said Ramon Laguarta, PepsiCo's CEO. The pressure facing snacks prompted competitor The Campbell's Company to lower its outlook last month. The soup and snacks maker forecast sales to rise 6% to 8% this year, instead of 9% to 11%. Organic sales projections also were lowered to be flat or drop by up to 2%. Previously, the company was predicting sales to be unchanged or up 2%. CEO Mick Beekhuizen noted Campbell's was dealing with 'softness' in some snacking categories, most notably cookies and crackers. 'The broader snacking categories didn't improve as we had originally anticipated,' Beekhuizen conceded. As concerns about inflation continue to mount, snack makers are beginning to roll out more affordable options. Shopper loyalty to Mondelēz's biscuit brands 'remains solid,' the CEO noted, and a focus on selling more offerings under $4 is helping to drive share gains. Similarly, PepsiCo launched smaller, single-serve items under $2 and smaller multi-pack options designed to keep the consumers in its brands and promote purchase frequency. And while snacking consumption remains subdued, some categories are faring better than others. Mondelēz's biscuit business, which includes Oreo, Ritz, Triscuit and Chips Ahoy!, is holding up 'better than many other snacking' categories, Van de Put said. Recommended Reading PepsiCo CEO says snacks maker 'accelerating' transition to natural ingredients
Time of India
01-05-2025
- Business
- Time of India
Mondelez beats first-quarter profit estimates on higher prices
Cadbury-parent Mondelez International beat Wall Street estimates for first-quarter profit on Tuesday, driven by the high prices for its chocolates and biscuits. Mondelez implemented several rounds of price increases in recent quarters to offset rising costs of inputs, such as cocoa in 2024, helping the company's earnings. This, along with its new product rollouts including the launch of the Glow Ups variant of its Sour Patch Kids candy and heavy-handed promotional activities and advertising spending helped the company draw in consumers amid high competition in the market. However, Mondelez faces potential uncertainty due to an anticipated surge in product prices following U.S. President Donald Trump's tariff policies , which may impact consumer spending in the U.S., while the trade wars may affect its expansion efforts into emerging markets. Shares of the Chicago-based company were up about 2 per cent after the bell. On an adjusted basis, the company earned 74 cents per share for the quarter ended March 31, ahead of analysts' average estimate of 66 cents per share, according to data compiled by LSEG. The Toblerone maker reported an increase in its prices by 6.6 percentage points in the quarter, while its volumes fell 3.5 percentage points. Mondelez's net revenue rose 0.2 per cent to $9.31 billion for the quarter, compared with analysts' average estimate of $9.33 billion. The company also reaffirmed its annual forecast, including organic net revenue growth of about 5 per cent and a 10 per cent decline in adjusted profits , noting it does not reflect any potential tariff changes. "Our Q1 pricing and share performance, along with the global strength of our categories, provide us with continued confidence in our full-year outlook," said Mondelez CEO Dirk Van de Put in a statement.
