Mondelez Q1 Earnings Beat Estimates, Net Revenues Rise 0.2% Y/Y

Mondelez International, Inc. MDLZ posted first-quarter 2025 results, with the top line increasing year over year but missing the Zacks Consensus Estimate. On the other hand, the bottom line declined year over year but beat the consensus mark.The company delivered solid results supported by effective execution of its growth strategy despite record-high cocoa cost inflation. Strong pricing, market share performance and resilient category strength globally reinforce confidence in the full-year outlook.Adjusted earnings were 74 cents per share, which decreased 18.3% on a constant-currency (cc) basis. The metric beat the Zacks Consensus Estimate of 65 cents. The decline was mainly caused by decreased operating results and elevated interest and other expenses, partially offset by fewer shares outstanding, lower taxes and contributions from the acquisition. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Mondelez International, Inc. Price, Consensus and EPS Surprise Mondelez International, Inc. price-consensus-eps-surprise-chart | Mondelez International, Inc. QuoteNet revenues increased 0.2% year over year to $9,313 million, missing the Zacks Consensus Estimate of $9,332 million. The year-over-year increase in the top line stemmed from incremental contributions from the Evirth acquisition. These gains were partially offset by negative currency impacts and the comparison to prior-year sales tied to a temporary distributor agreement for the developed market gum business, which was divested in 2023.MDLZ’s Q1 Revenue and Margin Breakdown: Key InsightsOrganic net revenues grew 3.1% year over year in the first quarter. This upside was primarily fueled by a 6.6 percentage point (pp) increase in pricing, partially offset by an unfavorable volume/mix impact of 3.5 pp. Our model estimated organic net revenue growth of 3.1%.Revenues from emerging markets decreased 0.3% to $3,723 million, but rose 3.9% on an organic basis. The organic growth was backed by favorable pricing actions, which increased 7.6 pp and unfavourable volume/mix was down 3.7 pp. The company saw growth trends across countries like Brazil, China, and most of the Middle East and Africa, although there was some softness in India and Southeast Asia.Revenues from developed markets increased 0.6% to $5,590 million, with an organic rise of 2.6%. This growth was primarily driven by strong pricing execution, which contributed positively, while the volume/mix effect declined 3.3 pp due to retailer destocking and some elasticity in the chocolate category. Overall, pricing had a favorable impact, contributing 5.9 pp.Region-wise, revenues in Latin America and North America declined 8.8% and 4.1%, respectively. The metric in Asia, the Middle East & Africa, and Europe grew 3.4% and 5.4%, respectively. On an organic basis, revenues rose 3.9%, 1.8% and 8.9% in Latin America, Asia, the Middle East & Africa, and Europe, respectively. In contrast, organic revenues in North America fell 3.6%.The adjusted gross profit fell $437 million at cc and the adjusted gross profit margin contracted 580 basis points (bps), reaching 33.4%. This decline was mainly due to increased raw material, transportation costs and unfavorable product mix, somewhat offset by favorable pricing and reduced manufacturing costs stemming from improved productivity.Mondelez’s adjusted operating income declined $308 million at cc, while the adjusted operating income margin contracted 370 bps to 14.8%. This decrease was mainly caused by escalated input cost inflation and unfavorable product mix, partially mitigated by favorable net pricing, lower advertising and consumer promotion costs, and lower manufacturing expenses resulting from productivity improvements and lower overhead costs.Mondelez’s Financial Health SnapshotThis Zacks Rank #2 (Buy) company ended the quarter with cash and cash equivalents of $1,561 million, long-term debt of $15,796 million and total equity of $25,823 million. MDLZ provided $1,092 million of net cash from operating activities for the three months ended March 31, 2025. Adjusted free cash flow was $815 million for the same period. Management expects a free cash flow of more than $3 billion for 2025.The company returned $2.1 billion to its shareholders in cash dividends and share repurchases in the first quarter of 2025.What to Expect From MDLZ in 2025Mondelez projects organic net revenue growth of around 5% in 2025. Adjusted earnings per share (EPS) are expected to decline nearly 10% on a cc basis due to unprecedented cocoa cost inflation. The company anticipates that currency translation would not impact 2025 net revenue growth and adjusted EPS.The company’s shares have risen 12.3% in the past three months against the industry’s 2.5% decline.Image Source: Zacks Investment ResearchOther Top-Ranked StocksUnited Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1.9% and 485.7%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 408.7%, on average.Utz Brands UTZ engages in the manufacture, marketing and distribution of snack foods in the United States and presently carries a Zacks Rank of 2. UTZ delivered a trailing four-quarter earnings surprise of 8.8%, on average.The Zacks Consensus Estimate for Utz Brands’ current financial-year sales and earnings indicates growth of 1.4% and 10.4%, respectively, from the year-ago numbers.BRF S.A. BRFS raises, produces and slaughters poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and other products. It currently carries a Zacks Rank of 2. BRFS delivered a trailing four-quarter earnings surprise of 9.6%, on average.The Zacks Consensus Estimate for BRF S.A.'s current fiscal-year sales indicates growth of 0.3% from the prior-year levels.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BRF S.A. (BRFS): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Utz Brands, Inc. (UTZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks