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.


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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