Vending

Mondelēz boosts Q3 2022 sales, upgrades FY expectations

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November 2, 2022

Mondelēz International Inc. reported improved sales for Q3 2022 and upgraded its full year outlook, according to an earnings report. Highlights include:

Net revenues increased 8.1% from $7.18 billion to $7.76 billion, driven by organic net revenue growth of 12.1% and incremental sales from the company's acquisitions of Clif Bar and Chipita, partially offset by unfavorable currency.
Net earnings fell from $126 billion to $533 million in the comparative quarters.
Diluted EPS fell 56.2% from 89 cents to 39 cents, primarily due to acquisition-related costs incurred in the quarter, an unfavorable year-over-year change in mark-to-market impacts from derivatives, lapping a prior-year net gain on equity method transactions, higher acquisition integration costs and contingent consideration adjustments, intangible asset impairment charges incurred in the quarter and inventory step-up charges.
Basic EPS fell from 90 cents to 39 cents.
Adjusted EPS rose 15.7% to 74 cents on a constant currency basis driven by strong operating gains, lower taxes, fewer shares outstanding and higher income from equity method investments.

Shares traded today at $62.89 against a 52-week range of $54.72-$89.47.

The $7.76 billion in quarterly revenue beat analyst expectations by $320 million while the non-GAAP EPS of 74 cents beat expectations by 5 cents, according to Seeking Alpha.

"Our third quarter performance demonstrates the resilience of our snacking categories, strength of our brands, broad-based net revenue growth of both our emerging and developed markets, effective execution of pricing and solid volume growth, enabling us to raise our full-year revenue and earnings outlook," Dirk Van de Put, chairman and chief executive officer, said in the press release.

For 2022, the company is updating its 2022 fiscal outlook and now expects 10% organic net revenue growth versus the prior outlook of 8%.

The company's expectation for adjusted EPS growth on a constant currency basis is now 10% versus the prior outlook of mid-to-high single digits.

The company also announced the following leadership changes:

Frank Cervi has been promoted from head of supply chain strategy to chief supply chain operations officer.
Daniel Ramos has been named chief research and development officer. He joins Mondelēz from The Estée Lauder Companies where he focused on advancing sustainable packaging initiatives.
Javier Polit, the company's chief digital and information officer, has been named to the Mondelēz International Leadership Team.