Mondelez International Reports Mixed Q3 and Nine-Month Results Amid Macro Challenges

Mondelez International, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, net revenues reached $9,204 million, a 1.9% increase from $9,029 million in Q3 2023. For the nine months, net revenues totaled $26,837 million, up 0.5% from $26,702 million in the same period last year. The growth in revenue was primarily driven by higher net pricing and a favorable volume mix, although it was partially offset by the divestiture of the developed market gum business and unfavorable currency impacts.

Gross profit for Q3 2024 was reported at $2,999 million, down from $3,494 million in Q3 2023, while gross profit for the nine months increased to $10,546 million from $10,294 million. Operating income for the third quarter decreased to $1,153 million from $1,379 million in the prior year, while for the nine months, it rose to $4,734 million from $4,309 million. Net earnings attributable to Mondelez International for Q3 2024 were $853 million, a decline of 13.3% from $984 million in Q3 2023, and for the nine months, net earnings fell to $2,866 million from $4,009 million, a decrease of 28.5%. Diluted earnings per share for Q3 2024 were $0.63, down from $0.72, and for the nine months, it decreased to $2.12 from $2.92.

Strategically, Mondelez announced the acquisition of a majority stake in Evirth (Shanghai) Industrial Co., Ltd., a leading manufacturer of cakes and pastries in China, expected to close in Q4 2024. The company also completed the sale of its developed market gum business to Perfetti Van Melle Group in October 2023. The restructuring program, named "Simplify to Grow," has been extended through December 31, 2024, with total charges incurred since inception amounting to $5.4 billion.

The company faced macroeconomic challenges, including inflationary pressures and fluctuating commodity costs, particularly for cocoa, which saw a significant year-over-year price increase. Despite these challenges, Mondelez reported an increase in cash provided by operating activities to $3,451 million for the nine months ended September 30, 2024, compared to $3,150 million in the same period of 2023. The company also maintained a robust cash position, with cash and cash equivalents at $1,573 million as of September 30, 2024.

Overall, while Mondelez experienced revenue growth, profitability was impacted by various factors, including divestitures, increased input costs, and currency fluctuations. The company continues to focus on strategic acquisitions and operational efficiencies to drive future growth.