The company reported earnings broadly in line with Nestlé a couple of weeks earlier, although for different reasons. While Nestlé showed organic growth of 7.7%, Mondelēz revealed that although they had a 7.9% increase in Net Revenues, only 3.8% was due to Organic Net Revenue, and the rest was due to favourable currency position and acquisitions.
By contrast, Nestlé had been disadvantaged by the strengthening of the Swiss Franc (meaning they lost money when converting sales in foreign currency back to the Franc).
Both companies talked to some degree about coming out of the Pandemic, indicating an upbeat view for the near and mid-term future.
First Quarter Highlights
- Net revenues increased 7.9% driven by Organic Net Revenue growth of 3.8%, favourable currency and acquisitions
- Diluted EPS was $0.68, up 33.3%; Adjusted EPS was $0.77, up 10.6% on a constant-currency basis
- Cash provided by operating activities was $915 million; Free Cash Flow was $699 million
- Return of capital to shareholders was $1.5 billion
Our first-quarter results demonstrate that we are emerging from the COVID-19 pandemic stronger, as we continue to build upon our track record of robust growth, profitability and cash generation. We saw continued improvement across emerging markets, healthy demand in developed markets and another quarter of strong share performance. We remain squarely focused on accelerating growth by further strengthening our core brand and expanding our presence in high-growth channels, categories and adjacencies. Our strategy is working, and our business is better positioned than ever before. – said Dirk Van de Put, Chairman and Chief Executive Officer.