Mondelez International Reports Solid 2024 Earnings

Mondelez International ( (MDLZ) ) has released its Q4 earnings. Here is a breakdown of the information Mondelez International presented to its investors.

Mondelēz International, Inc., a global leader in the snacking industry, operates in over 150 countries with iconic brands such as Oreo, Cadbury, and Toblerone. The company focuses on producing biscuits, chocolates, and baked snacks.

In its latest earnings report, Mondelēz International announced a modest increase in net revenues for the fiscal year 2024, despite challenges from currency fluctuations and divestitures. The company also highlighted a significant return of capital to shareholders and provided an outlook for fiscal 2025 amidst rising cocoa costs.

For fiscal year 2024, Mondelēz reported a net revenue increase of 1.2%, with organic net revenue growth at 4.3%. Despite the positive revenue performance, diluted EPS declined by 5.5% to $3.42, mainly due to previous gains not being repeated. The company managed to generate a free cash flow of $3.5 billion and returned $4.7 billion to shareholders. Adjusted EPS, however, saw a 13% increase on a constant currency basis, thanks to operational gains and lower taxes.

In the fourth quarter, net revenues grew by 3.1%, driven by higher pricing and favorable volume/mix, while diluted EPS surged by 85.7% due to positive changes in currency and commodity derivatives. Operating income and margins improved significantly, showcasing robust management amid challenging market conditions.

Looking ahead to 2025, Mondelēz International anticipates organic net revenue growth of around 5%, despite expecting a 10% decline in adjusted EPS due to cocoa cost challenges. The company remains committed to its long-term growth strategy, focusing on strategic pricing and operational efficiency to navigate the volatile market landscape.