DEERFIELD, Ill., April 29, 2015 /PRNewswire/ -- Mondelez International, Inc. today reported its first quarter 2015 results, reflecting continued strong Adjusted Operating Income margin expansion and Adjusted EPS growth on a constant currency basis, as well as solid Organic Net Revenue growth. On a reported basis, net revenues were $7.8 billion, down 10.2 percent, including a negative 14.5 percentage point impact from currency. Operating income was $811 million, down 3.8 percent. Diluted EPS was $0.19, up $0.10.
Net Revenue
Organic Net Revenue increased 3.8 percent, as the company raised prices to recover higher input costs, including the impact of currency. A significant portion of the price increases included the carryover benefit of pricing actions taken in 2014. While in line with the company's expectations, volume/mix was unfavorable, largely due to price elasticity as well as strategic decisions to exit certain low-margin product lines, especially in Europe. This was partially offset by a benefit from the shift of Easter-related shipments into the first quarter. Power Brands grew 5.9 percent. Organic Net Revenue from emerging markets3 was up 10.8 percent, while developed markets4 decreased 0.5 percent.
Operating Income and Diluted EPS
Adjusted Gross Profit increased 5.5 percent on a constant-currency basis. Adjusted Gross Profit margin was 38.0 percent, up 90 basis points, as higher prices, supply chain productivity and improved product mix more than offset input cost inflation.
Adjusted Operating Income grew 19.1 percent on a constant-currency basis. Adjusted Operating Income margin expanded 160 basis points to 13.8 percent, driven primarily by strong gains in North America, Europe and Latin America. The company continued to reduce overheads by leveraging zero-based budgeting tools and other cost-management programs. In addition, the company maintained advertising and consumer support, especially behind its Power Brands.
Adjusted EPS grew 25.6 percent on a constant-currency basis, driven primarily by operating gains. View the full report here.
