Mondelēz International Reports Q3 Results

Oct. 26, 2016

DEERFIELD, Ill., Oct. 26, 2016 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. reported its third quarter 2016 results. 

“Our third quarter results underscore our continued commitment to improve operational efficiency, expand margins and profitably grow volume while also investing in strategic growth initiatives for the longer term,” said Irene Rosenfeld, Chairman and CEO.  “In the face of challenging market conditions, we’re building a stronger, more streamlined company that is well positioned to deliver sustainable, profitable growth and attractive cash generation.” 

Third Quarter Commentary 

  • Net revenue decreased 6.6 percent, driven by currency headwinds and deconsolidation of the company’s Venezuelan operations.  Organic Net Revenue increased 1.1 percent, driven by continued improvement in overall volume/mix trends and pricing to recover currency-driven input costs in inflationary markets.  
  • Gross profit margin was 38.9 percent, a decrease of 10 basis points, driven primarily by higher Restructuring Program costs partially offset by the deconsolidation of the company’s Venezuelan operations. Adjusted Gross Profit1 margin was 39.9 percent, an increase of 30 basis points.  Strong net productivity and improved volume/mix was mostly offset by higher trade investments in a few key markets. 
  • Operating income margin was 11.0 percent, down 103 percentage points. Adjusted Operating Income margin expanded 220 basis points to 15.8 percent. These results reflect continued reductions in overhead costs, driven by the ongoing benefits from zero-based budgeting and increased shared services activities. 
  • Diluted EPS was $0.35, down $4.11 or 92 percent, driven by last year’s gain from the coffee business transactions. 
  • Adjusted EPS was $0.52 and grew 42 percent on a constant-currency basis, driven primarily by operating gains, strong results from coffee equity income investments and lower taxes. 
  • Capital return: The company repurchased approximately $475 million of its common stock in the quarter and paid approximately $264 million in cash dividends. The company has returned approximately $2.6 billion to shareholders year-to-date. Full report.


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