Vending

Mondelēz International boosts Q2 2022 revenue, earnings slide

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July 29, 2022

Mondelēz International Inc. boosted its Q2 2022 revenue over the prior year period, surpassing analyst expectations and raising its full year outlook and increasing its declared dividend, according to an earnings report. Highlights include:

• Net revenues increased 9.5% from $6.64 billion in Q2 2021 to $7.27 billion for the quarter ending June 30, 2022, driven by organic net revenue growth of 13.1% and incremental sales from the company's acquisition of Chipita, partially offset by unfavorable currency. Pricing and volume drove organic net revenue growth.
• Net earnings, however, fell from $1.08 billion to $748 million in the comparative quarters.
• Diluted EPS fell 28.9% from 76 cents to 54 cents, primarily due to lapping a prior-year net gain on equity method transactions, an unfavorable year-over-year change in market-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 rose 9.1% on a constant currency basis to 67 cents, driven by strong operating gains, lower taxes and fewer shares outstanding, partially offset by higher interest expense and lower income from equity method investments.
• Latin America led revenue gains by region, posting a 30.9% jump to $876 million. North America revenue rose 9.3% to $3.237 million, followed by Europe's 61% gain to $2.626 million and Asia, the Middle East and Africa's 5.7% rise to $1.535 billion.

Shares traded at $64.36 today against a 52-week range of $57.63-$69.47.

The $7.27 billion in quarterly revenue beat analyst expectations by $460 million while the non-GAAP EPS of 67 cents beat expectations by 3 cents, according to Seeking Alpha.

The company declared a 38.5-cent per share quarterly dividend, marking a 10% increase from the prior 35-cent dividend, payable Oct. 14 for shareholders of record Sept. 30.

"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," Dirk Van de Put, chairman and CEO, said in the press release.

"Our chocolate and biscuit businesses continue to demonstrate strong volume growth and pricing resilience across both developed and emerging markets," Van de Put said. "These results combined with ongoing cost discipline, simplification and revenue growth management are delivering robust profit dollar growth and strong cash flow, enabling us to increase our dividend by 10%."

For 2022, the company now expects more than 8% 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.