Mondelez Reports Strong Third Quarter
29 Oct 2015 --- Mondelez International has reported strong third quarter 2015 results, including increased profits, said to be due to price increases that have raised the bottom line.
On a reported basis, net revenues were $6.8 billion, down 17.8 percent, including a negative 13.6 percentage point impact from currency and a negative 9.3 percentage points from the coffee business transactions. Operating income was $7.8 billion, up 815 percent, including a $7.1 billion pre-tax gain from the coffee transaction. Diluted EPS was $4.46, up $3.93.
Organic Net Revenue increased 3.7 percent, as the company raised prices to recover currency-driven input cost inflation. Volume/mix was unfavorable, largely due to price elasticity as well as a 70 basis point headwind resulting from strategic decisions to exit certain low-margin product lines. Power Brands grew 5.1 percent. Organic Net Revenue from emerging markets was up 10.3 percent, while developed markets4 decreased 0.5 percent.
The company reaffirmed its outlook for 2015, as well as its Adjusted Operating Income margin target for 2016 of 15 percent to 16 percent.
In addition, the company estimates foreign exchange translation to reduce 2015 net revenue growth by approximately 13 percentage points6 and Adjusted EPS by approximately $0.336 due to the strengthening of the U.S. dollar versus other currencies.
Mondelez International also announced that it has named Mark Clouse, to the newly created position of Chief Commercial Officer (CCO), and Tim Cofer, as Chief Growth Officer (CGO), as the company continues to sharpen its focus on cost savings, growth and commercial execution. These changes become effective in January 2016.
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