DEERFIELD, Ill., Feb. 11, 2015 /PRNewswire/ -- Mondelez International, Inc. (NASDAQ: MDLZ) today reported its 2014 results.
Full Year GAAP Results
On a reported basis, net revenues were $34.2 billion, down 3.0 percent, including a negative 5.1 percentage point impact from currency. Operating income was $3.2 billion, down 18.4 percent, including a negative 12.4 percentage point impact from restructuring costs2 and a negative 8.7 percentage point impact from cycling the prior-year reversal of an indemnity accrual related to the 2010 acquisition of Cadbury3. Diluted EPS was $1.28, down 41.6 percent, due almost entirely to the negative 90-cent impact of cycling the prior year's arbitration award4.
Full Year Commentary
Organic Net Revenue increased 2.4 percent, driven by strong pricing performance (up 4.5 percentage points), which more than offset unfavorable volume/mix (down 2.1 percentage points). The decline in volume/mix was largely due to price elasticity, a slow response by competitors to higher input costs and the impact of significant price-related customer disruptions that are largely resolved. Organic Net Revenue from emerging markets5 was up 7.0 percent, while developed markets6 decreased 0.5 percent. Overall, Power Brands grew 4.1 percent.
Adjusted Gross Profit1 increased 0.6 percent on a constant-currency basis. Adjusted Gross Profit margin was 36.8 percent, down 0.6 percentage points, including a negative 0.5 percentage point impact from the mark-to-market adjustments associated with commodities and currency hedging. Excluding this impact, Adjusted Gross Profit margin was essentially flat as higher prices and a strong contribution from supply chain productivity offset input cost inflation.
Adjusted Operating Income grew 10.2 percent on a constant-currency basis. Adjusted Operating Income margin expanded 0.8 percentage points to 12.9 percent, driven primarily by strong gains in Europe and North America. The company continued to reduce overheads in all regions. In addition, the company maintained working media support while lowering overall advertising and consumer expense by driving efficiencies through consolidating providers, reducing non-working costs and shifting spending to lower-cost, digital outlets.
Adjusted EPS grew 23.4 percent on a constant-currency basis, driven by operating gains, lower interest expense and share repurchases. View full report here.
