On February 4, 2025, Mondelez International Inc (MDLZ, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year of 2024. The company, a global leader in the snack industry with iconic brands like Oreo and Cadbury, reported a mixed financial performance, with revenue surpassing expectations but earnings per share (EPS) falling short.

Company Overview

Mondelez International Inc (MDLZ, Financial) has been a prominent player in the global snack market since its separation from Kraft Foods in 2012. The company operates across various segments, including biscuits, chocolate, gum/candy, beverages, and cheese and grocery. Mondelez generates a significant portion of its revenue from developing markets, Europe, and North America.

Performance Highlights

Mondelez reported net revenues of $9,604 million for Q4 2024, slightly below the analyst estimate of $9,640.51 million. However, the company's diluted EPS for the quarter was $1.30, which, despite being a significant increase from the previous year, exceeded the estimated EPS of $0.67. For the full year, net revenues grew by 1.2% to $36,441 million, slightly below the annual estimate of $36,556.08 million. The diluted EPS for FY 2024 was $3.42, a decline of 5.5% from the previous year.

Financial Achievements and Challenges

Mondelez achieved a 4.3% growth in organic net revenues for FY 2024, driven by higher net pricing. However, the company faced challenges such as unfavorable currency impacts and the divestiture of its developed market gum business. The adjusted EPS on a constant currency basis increased by 13.0% to $3.36, highlighting strong operational gains and cost management.

Key Financial Metrics

Mondelez's gross profit for FY 2024 increased by 3.6% to $14,257 million, with a gross profit margin of 39.1%. Operating income rose by 15.3% to $6,345 million, reflecting a margin of 17.4%. The company generated $4.9 billion in cash from operating activities and returned $4.7 billion to shareholders through dividends and share repurchases.

Analysis and Outlook

Mondelez's performance underscores its resilience in a challenging market environment, marked by inflationary pressures and currency fluctuations. The company's strategic focus on pricing and cost management has helped mitigate some of these challenges. However, the decline in EPS highlights the impact of higher input costs and divestitures.

Fiscal 2024 was another strong year of performance for our company. We delivered balanced top-line growth, strong earnings, and robust free cash flow generation, while returning significant capital back to shareholders," said Dirk Van de Put, Chair and Chief Executive Officer.

Looking ahead, Mondelez remains focused on executing its long-term growth strategy, particularly in the chocolate segment, while navigating the challenges posed by cocoa cost inflation. The company expects organic net revenue growth of approximately 5% for 2025, with a projected decline in adjusted EPS due to ongoing cost pressures.

Explore the complete 8-K earnings release (here) from Mondelez International Inc for further details.