Our second quarter and first half results were marked by strong top and bottom-line performance across all regions and categories, supporting the raising of our full-year revenue growth outlook.<\/p>
Dirk Van de Put, Chairman and Chief Executive Officer.<\/cite><\/blockquote>\n\n\n\nNet Revenue<\/strong><\/p>\n\n\n\n$ in millions<\/strong><\/td>Reported<\/strong>Net Revenues<\/strong><\/td> <\/td> Organic Net Revenue Growth<\/strong><\/td><\/tr> <\/td> Q2 2022<\/strong><\/td> <\/td> % Chg<\/strong>vs PY<\/strong><\/td> <\/td> Q2 2022<\/strong><\/td> <\/td> Vol\/Mix<\/strong><\/td> <\/td> Pricing<\/strong><\/td><\/tr>Quarter 2<\/u><\/strong><\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Latin America<\/td> $<\/td> 876<\/td> <\/td> 30.9<\/td> %<\/td> <\/td> 33.0<\/td> %<\/td> <\/td> 12.4 pp<\/td> <\/td> 20.6 pp<\/td><\/tr> Asia, Middle East & Africa<\/td> <\/td> 1,535<\/td> <\/td> 5.7<\/td> <\/td> <\/td> 13.2<\/td> <\/td> <\/td> 8.7 pp<\/td> <\/td> 4.5 <\/td><\/tr> Europe<\/td> <\/td> 2,626<\/td> <\/td> 6.1<\/td> <\/td> <\/td> 10.8<\/td> <\/td> <\/td> 5.9 pp<\/td> <\/td> 4.9 <\/td><\/tr> North America<\/td> <\/td> 2,237<\/td> <\/td> 9.3<\/td> <\/td> <\/td> 9.2<\/td> <\/td> <\/td> (1.0)pp<\/td> <\/td> 10.2 <\/td><\/tr> Mondel\u0113z International<\/strong><\/td>$<\/strong><\/td>7,274<\/strong><\/td> <\/td> 9.5<\/strong><\/td>%<\/strong><\/td> <\/td> 13.1<\/strong><\/td>%<\/strong><\/td> <\/td> 5.1 pp<\/strong><\/td> <\/td> 8.0 <\/strong>pp<\/strong><\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Emerging Markets<\/td> $<\/td> 2,806<\/td> <\/td> 22.4<\/td> %<\/td> <\/td> 22.5<\/td> %<\/td> <\/td> 10.2 pp<\/td> <\/td> 12.3 pp<\/td><\/tr> Developed Markets<\/td> $<\/td> 4,468<\/td> <\/td> 2.7<\/td> %<\/td> <\/td> 8.1<\/td> %<\/td> <\/td> 2.4 pp<\/td> <\/td> 5.7 pp<\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> June Year-to-Date<\/u><\/strong><\/td> YTD 2022<\/strong><\/td> <\/td> <\/td> <\/td> YTD 2022<\/strong><\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Latin America<\/td> $<\/td> 1,702<\/td> <\/td> 27.2<\/td> %<\/td> <\/td> 29.4<\/td> %<\/td> <\/td> 10.6 pp<\/td> <\/td> 18.8 pp<\/td><\/tr> Asia, Middle East & Africa<\/td> <\/td> 3,402<\/td> <\/td> 6.4<\/td> <\/td> <\/td> 10.9<\/td> <\/td> <\/td> 7.5 pp<\/td> <\/td> 3.4 <\/td><\/tr> Europe<\/td> <\/td> 5,561<\/td> <\/td> 4.5<\/td> <\/td> <\/td> 7.6<\/td> <\/td> <\/td> 4.5 pp<\/td> <\/td> 3.1 <\/td><\/tr> North America<\/td> <\/td> 4,373<\/td> <\/td> 8.7<\/td> <\/td> <\/td> 8.5<\/td> %<\/td> <\/td> (0.4)pp<\/td> <\/td> 8.9 <\/td><\/tr> Mondel\u0113z International<\/strong><\/td>$<\/strong><\/td>15,038<\/strong><\/td> <\/td> 8.3<\/strong><\/td>%<\/strong><\/td> <\/td> 10.7<\/strong><\/td>%<\/strong><\/td> <\/td> 4.3 pp<\/strong><\/td> <\/td> 6.4 <\/strong>pp<\/strong><\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Emerging Markets<\/td> $<\/td> 5,770<\/td> <\/td> 18.8<\/td> %<\/td> <\/td> 19.4<\/td> %<\/td> <\/td> 9.9 pp<\/td> <\/td> 9.5 pp<\/td><\/tr> Developed Markets<\/td> $<\/td> 9,268<\/td> <\/td> 2.7<\/td> %<\/td> <\/td> 6.0<\/td> %<\/td> <\/td> 1.3 pp<\/td> <\/td> 4.7 pp<\/td><\/tr><\/tbody><\/table>Source: Mondel\u0113z Press Release<\/figcaption><\/figure>\n\n\n\nOperating Income and Diluted EPS<\/strong><\/p>\n\n\n\n$ in millions, except per share data<\/strong><\/td>Reported<\/strong><\/td> <\/td> Adjusted<\/strong><\/td><\/tr> <\/td> Q2 2022<\/strong><\/td> <\/td> vs PY<\/strong>(Rpt Fx)<\/strong><\/td> <\/td> Q2 2022<\/strong><\/td> <\/td> vs PY<\/strong>(Rpt Fx)<\/strong><\/td> <\/td> vs PY<\/strong>(Cst Fx)<\/strong><\/td><\/tr>Quarter 2<\/u><\/strong><\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Gross Profit<\/td> $<\/td> 2,641<\/td> <\/td> <\/td> 0.4 <\/td> %<\/td> <\/td> $<\/td> 2,756<\/td> <\/td> <\/td> 4.1 <\/td> %<\/td> <\/td> 9.7<\/td> %<\/td><\/tr> Gross Profit Margin<\/td> <\/td> 36.3<\/td> %<\/td> <\/td> (3.3)<\/td> pp<\/td> <\/td> <\/td> 37.9<\/td> %<\/td> <\/td> (2.1)<\/td> pp<\/td> <\/td> <\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Operating Income<\/td> $<\/td> 927<\/td> <\/td> <\/td> 6.3 <\/td> %<\/td> <\/td> $<\/td> 1,100<\/td> <\/td> <\/td> 2.3 <\/td> %<\/td> <\/td> 8.5<\/td> %<\/td><\/tr> Operating Income Margin<\/td> <\/td> 12.7<\/td> %<\/td> <\/td> (0.4)<\/td> pp<\/td> <\/td> <\/td> 15.1<\/td> %<\/td> <\/td> (1.1)<\/td> pp<\/td> <\/td> <\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Net Earnings2<\/sup><\/td>$<\/td> 747<\/td> <\/td> <\/td> (30.7)<\/td> %<\/td> <\/td> $<\/td> 925<\/td> <\/td> <\/td> (0.5)<\/td> %<\/td> <\/td> 7.3<\/td> %<\/td><\/tr> Diluted EPS<\/td> $<\/td> 0.54<\/td> <\/td> <\/td> (28.9)<\/td> %<\/td> <\/td> $<\/td> 0.67<\/td> <\/td> <\/td> 1.5 <\/td> %<\/td> <\/td> 9.1<\/td> %<\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> June Year-to-Date<\/u><\/strong><\/td> YTD 2022<\/strong><\/td> <\/td> <\/td> <\/td> <\/td> YTD 2022<\/strong><\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Gross Profit<\/td> $<\/td> 5,624<\/td> <\/td> <\/td> 0.5 <\/td> %<\/td> <\/td> $<\/td> 5,766<\/td> <\/td> <\/td> 4.6 <\/td> %<\/td> <\/td> 9.8<\/td> %<\/td><\/tr> Gross Profit Margin<\/td> <\/td> 37.4<\/td> %<\/td> <\/td> (2.9)<\/td> pp<\/td> <\/td> <\/td> 38.3<\/td> %<\/td> <\/td> (1.5)<\/td> pp<\/td> <\/td> <\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Operating Income<\/td> $<\/td> 2,021<\/td> <\/td> <\/td> (6.2)<\/td> %<\/td> <\/td> $<\/td> 2,478<\/td> <\/td> <\/td> 4.7 <\/td> %<\/td> <\/td> 11.2<\/td> %<\/td><\/tr> Operating Income Margin<\/td> <\/td> 13.4<\/td> %<\/td> <\/td> (2.1)<\/td> pp<\/td> <\/td> <\/td> 16.5<\/td> %<\/td> <\/td> (0.6)<\/td> pp<\/td> <\/td> <\/td><\/tr> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td> <\/td><\/tr> Net Earnings<\/td> $<\/td> 1,602<\/td> <\/td> <\/td> (21.4)<\/td> %<\/td> <\/td> $<\/td> 2,093<\/td> <\/td> <\/td> 1.9 <\/td> %<\/td> <\/td> 9.6<\/td> %<\/td><\/tr> Diluted EPS<\/td> $<\/td> 1.15<\/td> <\/td> <\/td> (20.1)<\/td> %<\/td> <\/td> $<\/td> 1.50<\/td> <\/td> <\/td> 3.4 <\/td> %<\/td> <\/td> 11.7<\/td> %<\/td><\/tr><\/tbody><\/table>Source: Mondel\u0113z Press Release<\/figcaption><\/figure>\n\n\n\nNet revenues<\/strong> increased 9.5 percent driven by Organic Net Revenue growth of 13.1 percent, and incremental sales from the company’s acquisition of Chipita, partially offset by unfavorable currency. Pricing and volume drove Organic Net Revenue growth.Gross profit <\/strong>increased $10 million, while gross profit margin decreased 330 basis points to 36.3 percent primarily driven by the decrease in Adjusted Gross Profit1<\/sup> margin and lower mark-to-market gains from derivatives. Adjusted Gross Profit increased $257 million at constant currency, while Adjusted Gross Profit margin decreased 210 basis points to 37.9 percent due to higher raw material and transportation costs and unfavorable mix, partially offset by pricing and volume leverage.Operating income <\/strong>increased $55 million and operating income margin was 12.7 percent, down 40 basis points primarily due to lower mark-to-market gains from derivatives, lower Adjusted Operating Income1<\/sup> margin and higher acquisition integration costs, partially offset by lower restructuring costs and lapping prior-year pension participation changes. Adjusted Operating Income increased $91 million at constant currency while Adjusted Operating Income margin decreased 110 basis points to 15.1 percent, with input cost inflation and unfavorable mix, mostly offset by pricing and SG&A leverage.Diluted EPS<\/strong> was $0.54, down 28.9 percent, primarily due to lapping a prior-year net gain on equity method transactions, an unfavorable year-over-year change in mark-to-market impacts from derivatives and higher acquisition integration costs, partially offset by lower restructuring costs, lower negative impacts from enacted tax law changes, lapping a prior-year intangible asset impairment charge, lapping a prior-year unfavorable impact of pension participation changes and an increase in Adjusted EPS.Adjusted EPS<\/strong> was $0.67, up 9.1 percent on a constant-currency basis driven by strong operating gains, lower taxes and fewer shares outstanding, partially offset by higher interest expense and lower income from equity method investments.Capital Return<\/strong>: The company returned $1.2 billion to shareholders in cash dividends and share repurchases. Today, the company\u2019s Board of Directors declared a quarterly cash dividend of $0.385 per share of Class A common stock, an increase of 10 percent. This dividend is payable on October 14, 2022, to shareholders recorded as of September 30, 2022.<\/li><\/ul>\n\n\n\n2022 Outlook<\/h2>\n\n\n\n Mondel\u0113z International provides its outlook on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including the impact of foreign exchange. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details.<\/p>\n\n\n\n
The company is updating its fiscal 2022 outlook to reflect expectations for continued top-line growth, higher cost of goods sold inflation, the timing effect of additional pricing actions and the impact of the war in Ukraine.<\/p>\n\n\n\n
For 2022, the company now expects 8+ percent Organic Net Revenue growth, which reflects the strength of its first half and higher pricing related to increased input costs. The company’s expectation of mid-to-high single digit Adjusted EPS growth on a constant currency basis remains unchanged. The company’s Free Cash Flow outlook remains at $3+ billion. The company estimates currency translation would decrease 2022 net revenue growth by approximately 5 percent3<\/sup> with a negative $0.22 impact to Adjusted EPS3<\/sup>.<\/p>\n\n\n\nOutlook is provided in the context of greater than usual volatility as a result of COVID-19 and geopolitical uncertainty.<\/p>\n\n\n\n
End Notes<\/strong><\/p>\n\n\n\nOrganic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information.<\/li> Earnings attributable to Mondel\u0113z International.<\/li> Currency estimate is based on published rates from XE.com on July 20, 2022.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"Mondel\u0113z may not be much loved within the craft chocolate market, but they are popular with investors. We couldn’t find any stock analyst that had a SELL position for the company. Most had BUY positions with a couple of HOLD. Despite a dubious ESG record, the company knows how to keep investors happy. As with […]<\/p>\n","protected":false},"author":10,"featured_media":28433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[1835,1701],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/posts\/28566"}],"collection":[{"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/comments?post=28566"}],"version-history":[{"count":11,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/posts\/28566\/revisions"}],"predecessor-version":[{"id":28601,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/posts\/28566\/revisions\/28601"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/media\/28433"}],"wp:attachment":[{"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/media?parent=28566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/categories?post=28566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bartalks.net\/wp-json\/wp\/v2\/tags?post=28566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}