Vending

Mondelez lifts Q4, FY 2022 revenue, earnings slide

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February 1, 2023

Mondelez International Inc. boosted its Q4 and FY 2022 revenue but suffered earnings declines, according to an earnings report.

Highlights include:

• Net revenues increased 13.5%, from $7.66 billion in Q4 2021 to $8.69 billion in Q4 2022, driven by organic net revenue growth of 15.4% and incremental sales from the company's acquisitions of Chipita, Clif Bar and Ricolino, partially offset by unfavorable currency.
• Non-GAAP revenue was $8.82 billion for Q4 2022.
• Net earnings fell from $1.003 billion to $583 million in the comparative quarters.
• Diluted EPS for the quarter fell 40.8% to 42 cents, primarily due to the impact from a European Commission legal matter, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives, lower restructuring costs, higher acquisition integration costs and contingent consideration adjustments, partially offset by an increase in adjusted EPS and 2017 malware incident recoveries.
• Adjusted EPS for the quarter rose 9.9% to 73 cents on a constant currency basis driven by strong operating gains and fewer shares outstanding, partially offset by higher taxes, higher interest expense and lower income from equity method investments.
• For the full year, net revenues increased 9.7%, from $28.7 billion to $31.49 billion, driven by organic net revenue growth of 12.3% and incremental sales from the company's acquisitions, primarily Chipita, Clif Bar and Ricolino, partially offset by unfavorable currency.
• Net earnings for the full year fell from $4.3 billion to $2.72 billion.
• Diluted EPS for the full year fell 35.5%, from $3.06 to $1.96.
• Adjusted EPS for the full year rose 11.9% to $2.95, on a constant currency basis.

Shares traded at $65.44 against a 42-week range of $54.72-$68.81.

The $8.82 billion in non-GAAP quarterly revenue beat analyst expectations by $520 million, while the non-GAAP EPS of 73 cents beat expectations by 3 cents, according to Seeking Alpha.

"Our 2022 results demonstrate the strength and diversification of our portfolio as we delivered broad-based growth in terms of regions, categories and brands," Dirk van de Put, chairman and CEO, said in the press release. "We made significant progress against our strategy of accelerating growth and focusing our portfolio in the attractive, resilient categories of chocolate, biscuits and baked snacks, while continuing to invest in our brands and capabilities."

For 2023, the company expects organic net revenue growth of 5% to 7%, high single-digit adjusted EPS growth on a constant currency basis and free cash flow of $3.3-plus billion.