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Mondelēz Q4 2021 earnings fall on higher sales; FY results positive

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January 28, 2022

Mondelēz International Inc. reported lower earnings against increased sales for Q4 2021, while full year 2021 results were positive, according to an earnings report.

Net revenue for Q4 2021 increased 4.9% to $7.66 billion versus Q4 2020, driven by organic net revenue growth of 5.4% and incremental sales from the company's acquisitions of Hu, Grenade and Gourmet Food, partially offset by unfavorable currency.

Earnings, however, declined 13.2% in the quarter to $1 billion.

Diluted EPS was 71 cents for the quarter, down 11.3% from Q4 2020, primarily due to lapping prior-year gain on equity method investment transactions, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives and lapping prior-year benefit from resolution of tax matters, partially offset by prior-year loss on debt extinguishment and related expenses and higher restructuring costs.

Adjusted EPS was also 71 cents for the quarter, up 9.1% on a constant-currency basis from Q4 2020, driven by lower taxes, fewer shares outstanding and higher earnings from equity method investments.

Net revenue for the full year rose 8% to $28.72 billion, driven by organic net revenue growth of 5.2%, favorable currency and incremental sales from the company's acquisitions of Give & Go, Hu, Grenade and Gourmet Food. Volume and pricing also drove organic net revenue growth.

Earnings for the full year rose 21% to $4.3 billion.

Diluted EPS for the full year was $3.04, up 23.1%, primarily due to an increase in adjusted EPS, lapping prior-year costs associated with the JDE Peet's transaction, favorable year-over-year mark-to-market impacts from currency and commodity derivatives and lower intangible asset impairment charges, partially offset by a lower gain on equity method investment transactions and higher initial impacts from enacted tax law changes.

Adjusted EPS for the full year was $2.87, up 9% on a constant-currency basis driven by operating gains, fewer shares outstanding, higher earnings from equity method investments and lower interest expense, partially offset by higher taxes.

"We further strengthened our portfolio with the addition of several growth accretive acquisitions, which increase our exposure to broader snacking categories and expanding profit pools," Dirk Van de Put, chairman and chief executive officer, said in the press release.

Shares traded at $67.47 Thursday against a 52-week range of $52.91-$69.47.

The $7.66 billion in quarterly revenue missed analyst estimates by $80 million, while the non-GAAP EPS of 71 cents missed estimates by 2 cents, according to Seeking Alpha.

For 2022, the company expects performance in line with its long-term growth algorithm of 3%-plus organic net revenue growth, high single-digit adjusted EPS growth on a constant currency basis and free cash flow of $3-plus billion.