Mondelez International Reports Q2 Results; Increases Quarterly Dividend

DEERFIELD, Ill., Aug. 6, 2014 /PRNewswire/ -- Mondelez International, Inc. (NASDAQ: MDLZ) today reported its second quarter 2014 results reflecting strong Adjusted Operating Income growth and margin expansion. 

  • Organic Net Revenue(1) grew 1.2%, including a +3.6pp impact from pricing
  • Adjusted Operating Income(1) margin expanded 120 basis points to 12.6%
  • Adjusted EPS(1) increased to $0.40, up 19.4% on a constant currency basis
  • Solid year-to-date market share performance(2) with over half of revenues gaining or holding share
  • Increases quarterly dividend by 7%
  • On track to combine coffee portfolio with D.E Master Blenders 1753 in 2015
  • Reaffirms 2014 Adjusted Operating Income margin and Adjusted EPS targets; reduces 2014 Organic Net Revenue growth target to 2-2.5% to reflect slower category growth and temporary pricing-related dislocation

"We're making good progress on the strategic and cost-reduction actions we announced in May to strengthen our core snacking business, simplify our operations and enhance our margins," said Irene Rosenfeld, Chairman and CEO.  "We delivered strong, high-quality operating margin expansion and EPS growth again this quarter in the face of a continuing challenging macroeconomic environment.  Our revenue growth reflects this difficult global retail and consumer environment as well as a temporary dislocation related to our decision to lead the industry on pricing.  Despite these challenges, we remain on track to achieve our margin and earnings commitments for the full year."  

On a reported basis for the second quarter, net revenues were $8.4 billion, down 1.8 percent, and operating income was $957 million, up 10.6 percent.  Diluted EPS increased 9.1 percent to $0.36.

Year to date, reported net revenues were $17.1 billion, down 1.5 percent, and operating income was $1.8 billion, up 5.9 percent.  Diluted EPS was $0.46, down 17 cents, including a loss of 18 cents related to debt extinguishment3 and a negative 8 cents from the remeasurement of net monetary assets in Venezuela4Full report.