Mondelez International (MDLZ) Q1 2025 earnings summary

Executive summary

• Q1 2025 organic net revenue grew 3.1%, driven by strong pricing, especially in chocolate, offset by a 3.5% volume/mix decline and currency headwinds.

• Diluted EPS dropped 70.2% to $0.31, and adjusted EPS fell 18.3% to $0.74, mainly due to cocoa cost inflation, mark-to-market derivative impacts, and higher costs.

• Free cash flow reached $800–$815 million, with $2.1 billion returned to shareholders via buybacks and dividends.

• Chocolate delivered share gains in key markets, while biscuits and North America faced headwinds from consumer confidence and retailer destocking.

• Management remains confident in the full-year outlook, supported by robust brand performance and strategic execution.

Financial highlights

• Organic net revenue grew 3.1% year-over-year; price +6.6pp, volume/mix -3.5pp.

• Adjusted gross profit margin declined 580 bps to 33.4% due to cocoa and input cost inflation.

• Adjusted operating income margin dropped to 14.8%, and adjusted EPS declined 18.3% to $0.74.

• Net earnings attributable to Mondelēz were $402 million, down 71.5% year-over-year.

• Cash from operations was $1.09–$1.1 billion, down from $1.3 billion year-over-year.

Outlook and guidance

• 2025 organic net revenue growth reaffirmed at ~5%; adjusted EPS expected to decline ~10% on constant currency due to cocoa cost inflation.

• Free cash flow for 2025 projected at over $3 billion.

• Most key assumptions unchanged; no expected FX impact on net revenue or EPS for the year.

• 2026 planning assumes continued investment in brands and capabilities, with expectations for EPS growth.

• Outlook reflects heightened volatility from geopolitical, trade, regulatory, and commodity price uncertainties.