Mondelēz International Outlines Priorities And Reaffirms Outlook At CAGNY
Source Mondelez International, Inc.
BOCA RATON, Fla., Feb. 20, 2018 (GLOBE NEWSWIRE) -- At the Consumer Analyst Group of New York (CAGNY) conference, executives of Mondelēz International highlighted the company's priorities for the year, including delivering its 2018 business plan with excellence and completing a comprehensive strategic business review designed to deliver sustainable shareholder value in the years to come.
Chief Executive Officer Dirk Van de Put outlined several areas of focus that will be important as the company develops its future strategic framework: putting consumers first, leveraging Power Brands, solidifying an omnichannel presence and executing with excellence.
"We're taking a fresh approach, challenging existing thinking and exploring new ideas and ways to win," he said. "More than ever, the consumer needs to be at the center of what we do. Today's consumers eat differently, shop differently and seek different experiences. Since consumers are changing fast, we have to be more nimble, innovative and forward-looking than ever before."
Van de Put continued: "The key to unlocking more value for shareholders is to get two things right: putting the consumer at the center of everything we do and executing with excellence every day, in every store. If we do that, I'm confident we'll deliver sustainable, profitable growth."
Brian Gladden, Chief Financial Officer, underscored the company's strong bottom-line performance over the past four years, including a 600-basis-point increase in Adjusted Operating Income1 margin and 18 percent CAGR in Adjusted EPS1 at constant currency. Gladden highlighted how the company's Supply Chain Reinvention program and Zero-Based Budgeting approach significantly contributed to delivering this performance.
"We've built a core competency in cost management, and this will benefit us moving forward," Gladden said. "Cost efficiencies will continue to be a fundamental part of our playbook, and we're confident there are additional opportunities to improve margin performance and fund growth initiatives."
Reaffirming 2018 Outlook
During today's presentation, the company reaffirmed its 2018 outlook, including:
- Organic Net Revenue growth1 of 1 to 2 percent
- Adjusted Operating Income margin of approximately 17 percent
- Double-digit Adjusted EPS growth on a constant-currency basis
- Free Cash Flow1 of approximately $2.8 billion
A live audio webcast of today's CAGNY presentation will be available in the investors section of the company's website (www.mondelezinternational.com), and an archived replay of the presentation with accompanying slides will be available on the website following the webcast. The company will be live tweeting from the event at www.twitter.com/MDLZ.
About Mondelēz International
Mondelēz International, Inc. is building the best snacking company in the world, with 2017 net revenues of approximately $26 billion. Creating more moments of joy in approximately 160 countries, Mondelēz International is a world leader in biscuits, chocolate, gum, candy and powdered beverages, featuring global Power Brands such as Oreo and belVita biscuits; Cadbury Dairy Milk and Milka chocolate; and Trident gum. Mondelēz International is a proud member of the Standard and Poor's 500, Nasdaq 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com or follow the company on Twitter at www.twitter.com/MDLZ.
End Note
- Organic Net Revenue, Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in constant currency are non-GAAP financial measures. Please see the section below regarding GAAP to non-GAAP reconciliations on the company's outlook.
Outlook
The company's outlook for 2018 Organic Net Revenue growth, Adjusted Operating Income margin, Adjusted EPS growth on a constant currency basis and Free Cash Flow are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results such as the impact of changes in foreign currency exchange rates, restructuring activities, acquisitions and divestitures. The company is not able to reconcile its full year 2018 projected Organic Net Revenue growth to its full year 2018 projected reported net revenue growth because the company is unable to predict the 2018 impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates, which could be material as a significant portion of the company's operations are outside the U.S. The company is not able to reconcile its full year 2018 projected Adjusted Operating Income margin to its full year 2018 projected reported operating income margin because the company is unable to predict the timing of its Restructuring Program costs, mark-to-market impacts from commodity and forecasted currency transaction derivative contracts and impacts from potential acquisitions or divestitures. The company is not able to reconcile its full year 2018 projected Adjusted EPS growth on a constant currency basis to its full year 2018 projected reported diluted EPS growth because the company is unable to predict the timing of its Restructuring Program costs, mark-to-market impacts from commodity and forecasted currency derivative contracts, impacts from potential acquisitions or divestitures as well as the impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates, which could be material as a significant portion of the company's operations are outside the U.S. The company is not able to reconcile its full year 2018 projected Free Cash Flow to its full year 2018 projected net cash from operating activities because the company is unable to predict the timing and amount of capital expenditures impacting cash flow. Therefore, because of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, the company is unable to provide a reconciliation of these measures without unreasonable effort.
