29 Jul

Mondelēz International Reports Mixed Results for 2Q16

WRITTEN BY Gabriel Kane

Price movement

Mondelēz International (MDLZ) has a market cap of $68.3 billion. It fell by 2.9% to close at $43.94 per share on July 27, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.7%, 6.6%, and -1.2%, respectively, on the same day. MDLZ is trading 2.6% below its 20-day moving average, 1.2% below its 50-day moving average, and 2.4% above its 200-day moving average.

Mondelēz International Reports Mixed Results for 2Q16

Related ETF and peers

The Fidelity MSCI Consumer Staples ETF (FSTA) invests 3.2% of its holdings in Mondelēz International. The ETF tracks a market-cap-weighted index of stocks in the US consumer staples sector. The YTD price movement of FSTA was 8.0% on July 27.

The market caps of Mondelēz’s competitors are as follows:

  • PepsiCo (PEP) — $155.1 billion
  • General Mills (GIS) — $42.1 billion
  • Hershey (HSY) — $23.0 billion

Performance of Mondelēz International in 2Q16

Mondelēz International reported 2Q16 net revenues of $6.3 billion, a fall of 18.2% from the net revenues of $7.7 billion in 2Q15. Revenue from Latin America, Asia-Pacific, Eastern Europe, the Middle East & Africa, and Europe fell by 32.0%, 0.1%, 25.4%, and 26.5%, respectively, and revenue from North America rose by 0.4% between 2Q15 and 2Q16. The company’s gross profit margin and operating income fell by 1.4% and 24.1%, respectively. Its net income and EPS (earnings per share) rose to $464.0 million and $0.29, respectively, in fiscal 2Q16, compared with $406.0 million and $0.25, respectively, in fiscal 2Q15.

Mondelēz’s cash and cash equivalents fell by 6.1%, and its inventories rose by 4.0% between 4Q15 and 2Q16. Its current ratio fell to 0.69x and its debt-to-equity ratio rose to 1.3x in 2Q16, compared with 0.82x and 1.2x, respectively, in 4Q15.

Quarterly dividends

Mondelēz International has declared a regular quarterly dividend of $0.19 per share on its Class A common stock. The dividend will be paid on October 13, 2016, to shareholders of record as of September 30, 2016.

Projections

The company has affirmed the following projections for fiscal 2016:

  • organic net revenue growth of ~2%
  • adjusted operating income margin in the range of 15% to 16%
  • adjusted EPS growth in the double-digits on a constant currency basis

In the next part of this series, we’ll take a look at Altria Group.

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