Mondelez International, Inc. (MDLZ) Bundle
A Brief History of Mondelez International
Company Overview
Mondelez International, Inc. is a leading global snack company, formed in 2012 as a spinoff from Kraft Foods. The company specializes in biscuits, chocolate, gum, candy, and powdered beverages, with a robust portfolio of well-known brands including Oreo, Cadbury, Toblerone, and Trident.
Financial Performance in 2024
As of September 30, 2024, Mondelez reported net revenues of $9.565 billion for the nine months ended, representing a 2.6% increase compared to $9.319 billion in the same period of 2023. The operating income for the same period was $1.746 billion, up 20.4% from $1.450 billion in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Net Revenues | $9.565 billion | $9.319 billion | 2.6% |
| Operating Income | $1.746 billion | $1.450 billion | 20.4% |
| Net Earnings | $2.866 billion | $4.009 billion | -28.5% |
| Diluted EPS | $2.12 | $2.92 | -27.4% |
Recent Developments
In 2024, Mondelez implemented the "Simplify to Grow" program aimed at reducing operating costs and enhancing productivity. The program has incurred restructuring costs totaling approximately $5.4 billion since inception, with expectations to complete the remaining charges by year-end 2024.
Market Position and Strategy
Mondelez continues to focus on expanding its market presence through strategic acquisitions and divestitures. In 2024, the company sold its remaining shares in JDEP for approximately $2.4 billion, enhancing its liquidity and allowing for reinvestment in core business areas.
International Operations
For the three months ended September 30, 2024, Mondelez's net revenues in the Europe segment increased by 7.7% to $3.323 billion. The AMEA (Asia, Middle East, and Africa) segment reported a revenue increase of 3.4% to $1.851 billion, driven by higher net pricing and favorable volume/mix.
Stock Performance and Shareholder Returns
As of September 30, 2024, Mondelez repurchased approximately 17 million shares at an average cost of $70.09 per share, totaling around $1.2 billion. The company has an ongoing share repurchase program with approximately $3.2 billion remaining as of the same date.
Outlook
Going forward, Mondelez aims to capitalize on the growing global demand for snacks through innovation and strategic investments in its brands. The company's focus on operational efficiency and cost management is expected to bolster its profitability in the competitive snack market.
| Segment | Net Revenues (Q3 2024) | Operating Income (Q3 2024) |
|---|---|---|
| North America | $2.826 billion | $918 million |
| Europe | $3.323 billion | $605 million |
| AMEA | $1.851 billion | $335 million |
Conclusion
Mondelez International continues to navigate a dynamic market landscape with a focus on innovation, cost efficiency, and strategic growth initiatives, positioning itself for long-term success in the global snack industry.
A Who Owns Mondelez International, Inc. (MDLZ)
Major Shareholders
As of 2024, the ownership structure of Mondelez International, Inc. (MDLZ) consists of various institutional and individual shareholders, with significant stakes held by major investment firms.
| Shareholder Type | Ownership Percentage | Number of Shares Owned (in millions) |
|---|---|---|
| Vanguard Group, Inc. | 8.42% | 112.4 |
| BlackRock, Inc. | 7.65% | 102.1 |
| State Street Corporation | 4.52% | 60.5 |
| Wellington Management Company, LLP | 3.98% | 53.5 |
| FMR LLC (Fidelity) | 3.56% | 47.8 |
| Other Institutional Investors | 40.87% | 547.2 |
| Individual Investors | 27.42% | 367.5 |
Insider Ownership
Insiders, including executives and board members, hold a smaller percentage of shares, reflecting a trend common in large publicly traded companies.
| Name | Position | Shares Owned (in millions) | Ownership Percentage |
|---|---|---|---|
| Dirk Van de Put | CEO | 0.45 | 0.03% |
| Lucia A. Rodriguez | SVP Global Marketing | 0.12 | 0.01% |
| Other Executives | Various | 0.30 | 0.02% |
Stock Performance and Market Capitalization
As of September 30, 2024, Mondelez International's stock performance reflects a stable market presence, with a market capitalization of approximately $124 billion.
| Metric | Value |
|---|---|
| Current Stock Price (as of September 30, 2024) | $70.20 |
| Market Capitalization | $124 billion |
| 52-Week High | $75.00 |
| 52-Week Low | $60.50 |
| Dividend Yield | 2.20% |
Recent Developments in Ownership
Mondelez has seen a gradual increase in institutional ownership, which now represents a significant portion of the total shares outstanding. Recent reports indicate that institutional investors collectively own approximately 63% of the company, which reflects confidence in Mondelez's growth strategy and market position.
Conclusion on Ownership Structure
The ownership of Mondelez International, Inc. is characterized by a diverse mix of institutional and individual investors, with major investment firms holding significant stakes. The company’s performance and strategic direction continue to attract institutional interest, contributing to its overall market stability.
Mondelez International, Inc. (MDLZ) Mission Statement
Company Overview
Mondelez International, Inc. is a global leader in the snacking industry, with a diverse portfolio that includes well-known brands such as Oreo, Cadbury, and Toblerone. The company operates in over 150 countries and is committed to delivering delicious snacks that are sustainable and responsible.
Mission Statement
As of 2024, Mondelez International’s mission is to empower people to snack right by offering the right snack, for the right moment, made the right way. This reflects their commitment to sustainability and health, emphasizing their focus on responsible sourcing and reducing their environmental impact.
Financial Performance Overview
Mondelez International reported net revenues of $9.2 billion for the third quarter of 2024, an increase of 1.9% compared to the same period in 2023. The growth was supported by higher net pricing and favorable volume/mix, although partially offset by unfavorable currency translation and the impact of divesting their developed market gum business.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Revenues | $9,204 million | $9,029 million | $175 million | 1.9% |
| Operating Income | $1,153 million | $1,379 million | ($226 million) | (16.4%) |
| Net Earnings Attributable to Mondelēz | $853 million | $984 million | ($131 million) | (13.3%) |
| Diluted EPS | $0.63 | $0.72 | ($0.09) | (12.5%) |
Strategic Initiatives
Mondelez has been focusing on several strategic initiatives to align with its mission. These include:
- Implementing sustainability practices across its supply chain.
- Innovating product offerings to meet changing consumer preferences.
- Enhancing operational efficiency through cost-saving programs like Simplify to Grow.
- Investing in marketing and consumer engagement to strengthen brand loyalty.
Market Position and Growth Potential
Mondelez continues to leverage its strong brand portfolio and global presence to capture market opportunities. The company's Organic Net Revenue increased by 5.4% to $9.3 billion in Q3 2024, indicating robust demand for its products despite market challenges.
Conclusion on Financial Outlook
Looking forward, Mondelez International aims to achieve sustainable growth by adhering to its mission statement and focusing on its core values of quality, integrity, and sustainability. The company is optimistic about its ability to navigate market fluctuations and maintain a strong competitive position.
How Mondelez International, Inc. (MDLZ) Works
Business Overview
Mondelez International, Inc. (MDLZ) is a leading global snack company that operates in various segments including biscuits, chocolate, gum, candy, and powdered beverages. The company focuses on developing and marketing well-known brands such as Oreo, Cadbury, Toblerone, and Trident.
Financial Performance
For the three months ended September 30, 2024, Mondelez reported:
- Net revenues of $9,204 million, an increase of $175 million (1.9%) compared to the same quarter in 2023.
- Operating income of $1,153 million, a decrease of $226 million (16.4%) from the previous year.
- Net earnings attributable to Mondelez of $853 million, down $131 million (13.3%) year-over-year.
- Diluted earnings per share (EPS) of $0.63, a decrease of $0.09 (12.5%) from Q3 2023.
For the nine months ended September 30, 2024, the financial data was as follows:
- Net revenues of $26,837 million, an increase of $135 million (0.5%) compared to the same period in 2023.
- Operating income of $4,734 million, up $425 million (9.9%) year-over-year.
- Net earnings attributable to Mondelez of $2,866 million, down $1,143 million (28.5%).
- Diluted EPS of $2.12, a decrease of $0.80 (27.4%) from the first nine months of 2023.
Segment Performance
Mondelez operates in several geographic segments, including North America, Europe, and AMEA (Asia, Middle East, and Africa). The following table summarizes the financial performance by segment for Q3 2024:
| Region | Net Revenues (in millions) | Segment Operating Income (in millions) | % Change Net Revenues | % Change Operating Income |
|---|---|---|---|---|
| North America | $2,826 | $918 | (0.7%) | 72.6% |
| Europe | $3,323 | $605 | 7.7% | 22.5% |
| AMEA | $1,851 | $335 | 3.4% | 10.9% |
Market Trends and Strategies
Mondelez is focusing on several growth strategies, including:
- Innovating product lines to meet changing consumer preferences.
- Enhancing digital marketing strategies to increase brand engagement.
- Expanding presence in emerging markets where demand for snacks is growing.
Challenges and Risks
The company faces various challenges, including:
- Fluctuations in commodity prices impacting raw material costs.
- Currency translation risks due to its global operations.
- Competitive pressures from both established and new entrants in the snack industry.
Recent Developments
Key recent developments include:
- The divestiture of the developed market gum business, which impacted revenues by approximately $174 million in the first nine months of 2024.
- Implementation of an ERP system, incurring costs of $29 million in Q3 2024.
Liquidity and Capital Resources
Mondelez maintains strong liquidity through:
- Cash from operations, revolving credit facilities, and short-term borrowings.
- Long-term financing options to support working capital needs and capital expenditures.
The company has successfully navigated its financing needs and continues to monitor its liquidity position in the face of global economic uncertainties.
How Mondelez International, Inc. (MDLZ) Makes Money
Revenue Streams
Mondelez International generates revenue primarily through the sale of snack products, which include biscuits, chocolate, gum, candy, and cheese. The company operates under various brand names such as Oreo, Cadbury, Toblerone, and Triscuit, targeting both developed and emerging markets.
Financial Performance in 2024
As of September 30, 2024, Mondelez reported net revenues of $9.204 billion for the third quarter, which reflects a 1.9% increase from $9.029 billion in the same quarter of 2023. For the nine months ended September 30, 2024, net revenues reached $26.837 billion, showing a slight increase of 0.5% from $26.702 billion year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenues | $9.204 billion | $9.029 billion | 1.9% |
| Operating Income | $1.153 billion | $1.379 billion | (16.4%) |
| Net Earnings | $853 million | $984 million | (13.3%) |
| Diluted EPS | $0.63 | $0.72 | (12.5%) |
Segment Performance
Mondelez operates in multiple geographic segments, including North America, Europe, and the Asia, Middle East, and Africa (AMEA) region. Each segment contributes differently to the overall revenue.
| Segment | Q3 2024 Net Revenues | Q3 2023 Net Revenues | Change (%) |
|---|---|---|---|
| North America | $2.826 billion | $2.847 billion | (0.7%) |
| Europe | $3.323 billion | $3.086 billion | 7.7% |
| AMEA | $1.851 billion | $1.791 billion | 3.4% |
Pricing and Volume Dynamics
The increase in net revenues for Q3 2024 was driven primarily by higher net pricing, which increased by 5.9% in North America and 7.6% in Europe, despite unfavorable volume/mix effects. The company implemented input cost-driven pricing actions across all product categories, significantly impacting revenue growth.
Cost Management
Mondelez has focused on reducing selling, general, and administrative expenses, which saw a decrease of $389 million in Q3 2024 compared to the prior year. This was attributed to lower acquisition integration costs and the elimination of costs related to divested operations.
Net Earnings and EPS
Net earnings for the first nine months of 2024 totaled $2.866 billion, down 28.5% from $4.009 billion in the same period in 2023. Diluted EPS decreased by 27.4% to $2.12 in 2024 from $2.92 in 2023, reflecting challenges such as higher raw material costs and impairment charges.
| Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Net Earnings | $2.866 billion | $4.009 billion | (28.5%) |
| Diluted EPS | $2.12 | $2.92 | (27.4%) |
Market Trends and Challenges
In 2024, Mondelez faced several challenges, including unfavorable currency translation impacts and the aftermath of divestitures, which negatively affected revenue growth. The company reported a reduction in net revenues of approximately $483 million due to the divestiture of its developed market gum business.
Conclusion
Mondelez International's revenue generation strategy is heavily reliant on price adjustments, cost management, and geographic segmentation. The company's ability to navigate market challenges while leveraging its brand portfolio is crucial for sustaining its financial performance moving forward.
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Article updated on 8 Nov 2024
Resources:
- Mondelez International, Inc. (MDLZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Mondelez International, Inc. (MDLZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Mondelez International, Inc. (MDLZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.