Mondelez International Reports 2016 Results

Feb. 8, 2017

Full-Year Highlights

  • Diluted EPS was $1.05, down 76%, due to the prior-year gain related to the coffee business transactions; Adjusted EPS1 was $1.94, up 24% on a constant-currency basis
  • Operating income margin was 9.9%, down 20.1 percentage points; Adjusted Operating Income1 margin was 15.3%, up 230 basis points
  • Net revenues decreased 12.5%; Organic Net Revenue1 grew 1.3%
  • Returned $3.7 billion in capital to shareholders

DEERFIELD, Ill., Feb. 07, 2017 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (NASDAQ:MDLZ) today reported its fourth quarter and full-year 2016 results. 

"We continue to make solid progress toward our near-term margin targets, while investing for long-term growth," said Irene Rosenfeld, Chairman and CEO. "Despite significant economic disruptions, political uncertainties and slower global category growth, we remain confident in and committed to our balanced strategy for both top- and bottom-line growth. Throughout the year, we continued to sharpen the focus of our portfolio, increase Power Brand investments and modernize our supply chain. These actions, together with our excellent cost discipline, position us well to deliver strong operating leverage that will drive sustainable value creation for our shareholders."

Full-Year Commentary

  • Net revenues decreased 12.5 percent, driven by the coffee business transactions, deconsolidation of the company's Venezuelan operations and currency headwinds. Organic Net Revenue increased 1.3 percent, which includes a negative impact of approximately 110 basis points from revenue management activities and India demonetization.
     
  • Gross profit margin was 39.1 percent, an increase of 30 basis points, driven primarily by Adjusted Gross Profit1 margin expansion and the impact from the prior year's Venezuela deconsolidation, partially offset by the net negative change in mark-to-market impacts from commodity and currency derivative contracts. Adjusted Gross Profit margin was 39.8 percent, an increase of 70 basis points. Strong net productivity and improved mix were mostly offset by higher trade investments in a few key markets.
     
  • Operating income margin was 9.9 percent, down 20.1 percentage points, driven by the prior-year gain on the coffee business transactions, partially offset by the prior year loss on the Venezuela deconsolidation. Adjusted Operating Income margin expanded 230 basis points to 15.3 percent. These results reflect continued reductions in overhead costs and supply chain productivity savings.
     
  • Diluted EPS was $1.05, down 76 percent, driven by last year's $7 billion gain from the coffee business transactions.
     
  • Adjusted EPS was $1.94 and grew 24 percent on a constant-currency basis, driven primarily by operating gains.
     
  • Free Cash Flow1 was $1.6 billion driven by strong working capital management.
     
  • Capital Return: The company returned $3.7 billion of capital to shareholders through share repurchases and dividends. 

Full report.

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