Mondelez International (MDLZ) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong top-line growth, with net revenues up 7.7% to $8,984M and organic net revenue up 5.6%, driven by robust pricing, the Evirth acquisition, and favorable currency, partially offset by volume/mix declines.

• Diluted EPS increased 8.9% to $0.49, but adjusted EPS fell 14.5% to $0.73 on a constant currency basis, mainly due to higher cocoa costs and increased expenses.

• Free cash flow remained solid at $0.8B in H1 2025, supporting $2.9B in shareholder returns and a 6% dividend increase.

• The Evirth acquisition in China contributed $102M in Q2 and $201M in H1 to net revenues.

• The 2025 outlook is maintained, with continued focus on execution amid a challenging external environment.

Financial highlights

• Q2 2025 organic net revenue grew 5.6% year-over-year, with price up 7.1pp and volume/mix down 1.5pp; net revenues reached $8,984M (+7.7% YoY).

• Adjusted gross profit declined 11.3% and adjusted EPS fell 14.5% year-over-year, mainly due to cocoa inflation.

• Operating income margin rose to 13.0% in Q2 2025 (from 10.2%), while adjusted operating income margin fell to 14.3% (from 17.9%).

• Free cash flow for H1 2025 was $0.8B, with $2.9B returned to shareholders via dividends and buybacks.

• Share repurchases totaled $1.7B YTD at an average price of $58.33 per share.

Outlook and guidance

• 2025 outlook maintained: organic net revenue growth of ~5%, adjusted EPS decline of ~10% (constant FX), and free cash flow of $3B+.

• Guidance includes prudent assumptions for inflation, cocoa costs, retailer destocking, and weather impacts.

• Expect EPS growth in 2026, supported by chocolate and biscuits businesses and increased reinvestment.

• ERP system upgrade underway, with $1.2B in funding and phased implementation through 2028.

• Currency translation is not expected to impact 2025 net revenue growth or adjusted EPS.