Mondelez Q1 Revenues Up 8.2%, EPS Jumps 41.9% to $0.44
Mondelez International delivered Q1 net revenues of $10.08 billion, up 8.2% on organic growth of 3.0% despite a 0.5% volume/mix decline, led by an 11.4% emerging markets gain. Diluted EPS rose 41.9% to $0.44 ($0.67 adjusted), with operating cash flow of $0.5 billion and $0.6 billion returned to shareholders.
1. First-Quarter Financial Results
Mondelez reported net revenues of $10.08 billion, an 8.2% year-over-year increase driven by underlying organic growth of 3.0%. Net income rose 39.3% to $560 million, with diluted EPS up 41.9% to $0.44 and adjusted EPS of $0.67.
2. Regional Performance
Emerging markets net revenues reached $4.15 billion, up 11.4% with organic growth of 6.3%, while developed markets generated $5.93 billion, rising 6.1% with organic growth of 0.8%. North America saw modest revenue growth of 0.5%, contrasted by double-digit gains in Latin America and Asia, Middle East & Africa.
3. Profitability and Margins
Gross profit increased 15.3% to $2.80 billion, boosting reported gross margin by 170 basis points to 27.8%, aided by favorable mark-to-market impacts from commodity and currency derivatives. Adjusted gross profit margin fell 270 basis points to 30.7%, with adjusted operating income margin down 310 basis points to 11.7% due to higher input costs and marketing spend.
4. Cash Flow and Capital Return
Operating activities generated $0.5 billion in cash, and free cash flow totaled $0.2 billion in Q1. The company returned $0.6 billion of capital to shareholders, reflecting ongoing commitment to shareholder returns as it invests behind long-term growth opportunities.