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What’s the Latest News on Mondelēz International?

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Price movement

Mondelēz International (MDLZ) fell 1.0% to close at $44.60 per share during the second week of January 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.0%, 4.0%, and 0.61%, respectively, on January 13.

MDLZ is trading 0.06% above its 20-day moving average, 3.1% above its 50-day moving average, and 3.3% above its 200-day moving average.

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Related ETF and peers

The Fidelity MSCI Consumer Staples ETF (FSTA) invests 3.2% of its holdings in Mondelēz International. The YTD price movement of FSTA was -0.42% on January 13.

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

  • PepsiCo (PEP) — $146.1 billion
  • General Mills (GIS) — $35.5 billion
  • Hershey (HSY) — $22.2 billion

Latest news on MDLZ

On January 13, 2017, Reuters reported, “Cadbury chocolate owner Mondelēz International said it is taking selective price increases across its brands, as it grapples with higher commodity costs and a weaker British pound.”

The report added, “Britain’s Guardian newspaper reported that Mondelēz was raising the price of its Freddo bars from 25 pence to 30 pence in the spring. A Mondelēz spokeswoman declined to discuss specific brands, saying only that there would be “selective” price increases across its range.”

In another report, Reuters noted, “Mondelēz International Inc. agreed to pay $13 million to settle US Securities and Exchange Commission charges that its Cadbury unit violated a federal anti-bribery law through efforts to expand a chocolate plant in Baddi, India.”

The report continued, “In a statement on Monday, Mondelēz said it was pleased to reach the civil settlement, in which it neither admitted nor denied wrongdoing.”

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Mondelēz International’s 3Q16 performance

Mondelēz International (MDLZ) reported 3Q16 net revenues of $6.4 billion, a YoY (year-over-year) fall of 5.9% from net revenues of $6.8 billion in 3Q15, due to the deconsolidation of its Venezuela business and currency headwinds.

The company’s gross profit margin narrowed by ten basis points due to an increase in restructuring program costs. However, this rise was offset by the deconsolidation of its Venezuela operations.

Mondelēz International’s net income and EPS (earnings per share) fell to $548.0 million and $0.35, respectively, in 3Q16, compared with $7.3 billion and $4.46, respectively, in 3Q15.

The company reported adjusted EPS of $0.52 in 3Q16, a rise of 36.8% over 3Q15. Between 4Q15 and 3Q16, Mondelēz’s cash and cash equivalents fell 9.8%, and its inventories rose 6.4%.

Projections

Mondelēz International made the following projections for fiscal 2016:

  • organic net revenue growth of ~1.6%
  • adjusted operating income margin in the range of 15%–16%
  • adjusted EPS growth of ~25% on a constant currency basis

For ongoing analysis of this sector, be sure to visit Market Realist’s Consumer Discretionary page.

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