Vending

Mondelez reports 2.6% gain in Q1 net revenue

April 29, 2020

Mondelēz International, Inc. reported net revenues increased 2.6% in the first quarter driven by organic net revenue growth of 6.4% offset by unfavorable currency impacts, according to a press release.

As a result of COVID-19, growth rates accelerated in developed markets and slowed in emerging markets versus Q4 2019. Volume/mix was the largest driver of growth, while pricing contributed to growth at approximately the same level as the prior quarter.
 
Gross profit decreased $142 million and margin declined 320 basis points to 36.5% due to mark-to-market losses from derivatives. Adjusted gross profit increased $151 million at constant currency while adjusted growth profit margin decreased 20 basis points to 39.6% primarily due to higher raw material costs in part due to unfavorable currency movements, and disruption caused by COVID-19.
 
Operating income decreased $180 million and margin was 12.8%, down 300 basis points primarily due to mark-to-market losses from currency and commodities derivatives. Adjusted operating income increased $62 million at constant currency, and margin decreased 30 basis points to 16.5% driven primarily by the decline in adjusted gross profit margin and higher marketing expenses, partially offset by pricing and overhead costs leverage.
 
Diluted earnings per share was $0.52, down 17.5%, primarily due to mark-to-market losses from derivatives and losses related to interest rate swaps.