Mondelez Reaffirms 3–5% Growth Target and $3B Free Cash Flow
Mondelez reaffirmed its long-term algorithm targeting 3–5% organic net revenue growth, high-single-digit adjusted EPS growth and more than $3 billion in free cash flow at its 2026 CAGNY presentation. It detailed plans to boost Developed Markets volumes via U.S. biscuits and Europe chocolate initiatives and to expand Emerging Markets using a local-first model.
1. Reaffirmed Long-Term Growth Algorithm
Mondelēz reaffirmed its long-term algorithm targeting 3–5% organic net revenue growth, high-single-digit adjusted EPS growth and over $3 billion in free cash flow. Despite 2025’s unprecedented cocoa input cost inflation, the company delivered solid top-line growth and strong cash generation while continuing to reinvest in its brands.
2. Developed Markets Initiatives
The company outlined action plans to reignite growth in Developed Markets, focusing on execution in U.S. biscuits and restoring consumption growth in Europe chocolate. Structural measures include enhancing cocoa supply resilience and investing in on-trend innovation and breakthrough activations.
3. Emerging Markets Expansion
Mondelēz plans to expand a volume-led growth engine in Emerging Markets through a local-first operating model and advantaged route-to-market capabilities. Priority markets include China, India, Brazil and Mexico, where the company sees significant headroom for snacking category growth.
4. Portfolio Reshaping and Capital Allocation
The firm aims to increase exposure to core snack categories—chocolate, biscuits and baked snacks—from approximately 80% to 90% of net revenues over time. Disciplined capital allocation will support brand reinvestment, growth-accretive bolt-on M&A and maintain balance sheet flexibility.