Mondelez International Inc (MDLZ, Financial) released its third-quarter earnings report on November 1, 2023, revealing a significant increase in net revenues by 16.3%. The company's robust performance was driven by Organic Net Revenue growth of 15.7% with a strong +3.8pp Volume/Mix performance. Volume/Mix was positive across all regions.
Financial Highlights
The company's diluted EPS was $0.72, up by 84.6%. Adjusted EPS was $0.82, up by 16.7% on a constant currency basis. Year-to-date cash provided by operating activities was $3.2 billion, and Free Cash Flow was $2.4 billion, up by $0.5 billion compared to the prior year. The company returned $2.2 billion in capital to shareholders in the first nine months of the year.
Mondelez International Inc (MDLZ, Financial) also closed the divestiture of its developed market gum business for $1.4 billion. Following the strong performance, the company raised its Organic Net Revenue outlook to 14% to 15% and Adjusted EPS growth outlook to approximately 16%.
Performance Across Regions
All regions delivered strong revenue growth with double-digit profitability growth. The Latin America region reported a 42.9% increase in net revenues, Asia, Middle East & Africa region reported a 5.1% increase, Europe reported a 16.5% increase, and North America reported a 14.0% increase.
Company's Commentary
“We delivered strong third quarter results that reinforce the durability of our categories, strength of our brands and geographies, and consistency of our execution. All regions delivered strong revenue growth with double-digit profitability growth, underpinned by strong volume/mix performance,” said Dirk Van de Put, Chairman and Chief Executive Officer. “We believe the best remains ahead as we strengthen and reshape our portfolio, substantially reinvest in our iconic brands, and continue developing best-in-class capabilities in key enablers such as digital and revenue growth management to further drive high-quality, sustainable growth for years to come. Our strong year-to-date performance and category attractiveness provide confidence to again raise both our net revenue and earnings outlook for the year.”
Outlook for 2023
For 2023, the company is updating its fiscal outlook and now expects 14 to 15 percent Organic Net Revenue growth versus the prior outlook of 12+ percent. The company's expectation for Adjusted EPS growth on a constant currency basis is now approximately 16 percent versus the prior outlook of 12+ percent. The company's Free Cash Flow outlook remains at $3.3+ billion.
Explore the complete 8-K earnings release (here) from Mondelez International Inc for further details.
