Mondelez International (MDLZ) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenues declined 1.9% year-over-year, but organic net revenue grew 2.5% driven by higher pricing, offset by lower volume/mix and currency headwinds.

• Adjusted EPS rose 25.0% at constant currency to $0.86, while diluted EPS fell 34.8% to $0.45 due to mark-to-market impacts, divestiture effects, and impairment charges.

• Free cash flow for H1 was $1.5 billion, flat year-over-year; $2.2 billion was returned to shareholders via dividends and buybacks, with an 11% dividend increase.

• Positioned for multi-year top and bottom-line growth, with reinvestment in brands, expansion into new channels, and a multi-year ERP transformation program.

Financial highlights

• Q2 2024 organic net revenue grew 2.5% year-over-year; YTD growth was 3.4%.

• Adjusted gross profit margin rose to 40.5% (up 330 bps); adjusted operating margin was 17.9% in Q2.

• Adjusted EPS for Q2: $0.86 (up 19.4% YoY, up 25.0% constant FX); YTD: $1.82 (up 15.9% YoY, up 20.4% constant FX).

• Free cash flow was $1.5B YTD, with $1.1B in share repurchases and $1.2B in dividends paid.

• Net debt at June 30, 2024: $18.4 billion, up $0.8 billion from year-end 2023.

Outlook and guidance

• 2024 organic net revenue growth expected at the upper end of 3–5%; high single-digit adjusted EPS growth at constant currency.

• 2024 free cash flow projected at $3.5+ billion.

• Currency translation estimated to reduce 2024 net revenue growth by ~1.5% and adjusted EPS by $0.09.

• Guidance issued amid heightened geopolitical and macroeconomic volatility, with cocoa cost inflation a key H2 headwind.

• Interest expense for full year estimated at $275 million.