Mondelēz International Inc. (Nasdaq: MDLZ) on Nov. 2 reported net revenues increased 7.8% for its 2021 third quarter. The snack powerhouse attributed the increase to organic net revenue growth of 5.5%, favorable currency and incremental sales from the company's acquisitions of Hu, Grenade and Gourmet Food. Pricing and volume drove organic net revenue growth, the company said.
Mondelēz's gross profit increased $32 million, while gross profit margin decreased 260 basis points to 39.3% Third-quarter operating income increased $159 million and operating income margin was 18%, up 100 basis points. adjusted operating income increased $52 million at constant currency.
Mondelēz Q3 highlights
- Net revenues increased +7.8% driven by organic net revenue growth of +5.5%, favorable currency and acquisitions.
- Diluted EPS was $0.89, up 14.1%; adjusted EPS1 was $0.71, up +9.4% on a constant-currency basis.
- Year-to-date cash provided by operating activities was $2.7 billion, an increase of +$0.4 billion versus prior year; year-to-date free cash flow was $2.1 billion, an increase of +$0.4 billion.
- Returned $3.2 billion of capital to shareholders year-to-date.
- Raising full-year 2021 organic net revenue growth outlook to approximately 4.5%, reaffirming Adjusted EPS and free cash flow outlook.
- Announced target of net zero greenhouse gas emissions by 2050.
"We delivered strong revenue and earnings growth in the third quarter with broad strength across both developed and emerging markets. Demand for our categories and brands remains vibrant and volume growth is solid as we implement pricing to reflect higher inflation," said Dirk Van de Put, chairman and chief executive.
"We expect elevated inflation and logistics volatility to persist, but remain confident in our plans to deliver on our financial algorithm, supported by compounding brand investments, pricing as necessary, distribution expansion and our robust ESG agenda, including our recently announced target of net zero emissions by 2050," Van de Put summed up.
Net-zero emissions pledge
In a separate announcement, Mondelēz International Inc.said t is committing to a 2050 target of net zero greenhouse gas emissions across its full value chain.
As part of its commitment, the comapny has signed the Science Based Targets Initiative’s Business Ambition for 1.5°C, aligning its long-term emissions mitigation targets with the ambitious aim of limiting temperature rise in accordance with the Paris Agreement.
Mondelēz International has also joined the United Nations Race to Zero Campaign to help build momentum towards a decarbonized economy.
