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Mondelēz Meets Analyst Expectations and Reports Higher Q4 Margins

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Key takeaways

Mondelēz (MDLZ) announced its fourth-quarter results on January 30. Mondelēz’s fourth-quarter net sales were roughly in line with analysts’ estimate as improved organic volumes and pricing drove the top line. Meanwhile, continued strength in emerging markets further supported the fourth-quarter top line. However, adverse currency rates remained a drag and lowered the net sales.

Mondelēz’s organic sales improved during the reported quarter, driven by higher volumes and pricing. Moreover, the company managed to expand margins, which is an encouraging sign. Improved organic sales and cost savings more than offset the higher raw material costs.

Mondelēz sustained the momentum and reported double-digit growth in its EPS. Higher pricing, improved margins, lower taxes, and a decline in interest expenses drove the company’s bottom-line growth. Also, lower outstanding share count further supported EPS growth.

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Q4 financials

Mondelēz reported net sales of $6.8 billion, which was in line with analyst estimates but fell 2.8% on a YoY basis, reflecting adverse currency rates. Organic sales improved 2.5%, driven by a 1% increase in volumes and a 1.5% rise in pricing.

Mondelēz’s adjusted gross profit margin expanded 90 basis points. Meanwhile, adjusted operating profit margin increased 50 basis points. Adjusted EPS rose 12.5% to $0.63 and came in line with analysts’ estimate. A decline in the effective tax rate and share repurchases contributed $0.05 and $0.07 per share to the bottom line.

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