Mondelez International (MDLZ) Q3 2025 earnings summary

Executive summary

• Net revenues grew 5.9% year-over-year in Q3 2025, with organic net revenue up 3.4% driven by higher pricing, offset by a 4.6% volume/mix decline and record-high cocoa cost inflation.

• Diluted EPS fell 9.5% to $0.57, while adjusted EPS dropped 24.2% on a constant currency basis to $0.73, reflecting operational declines and higher input costs.

• Market share performance remained robust, with snacks revenue gaining or holding share in about 70% of tracked markets year-to-date.

• Year-to-date cash from operations was $2.1 billion, with free cash flow at $1.2 billion; $3.7 billion was returned to shareholders via dividends and buybacks in the first nine months.

• Updated 2025 outlook to 4%+ organic net revenue growth and approximately 15% EPS decline on a constant currency basis.

Financial highlights

• Q3 2025 net revenues: $9,744M (+5.9% YoY); nine months: $28,041M (+4.5% YoY).

• Gross profit margin declined 580 basis points to 26.8% in Q3, mainly due to higher raw material and transportation costs and unfavorable product mix.

• Adjusted operating income margin fell to 12.0% in Q3 (from 18.9%); operating income margin dropped to 7.6% (from 12.5%).

• Adjusted EPS for Q3 2025 was $0.73, down 24.2% year-over-year; net earnings for Q3 were $743 million, down from $853 million a year ago.

• Free cash flow for the first nine months: $1.2 billion (down from $2.5 billion year-over-year).

Outlook and guidance

• FY 2025 organic net revenue growth is now expected at 4%+, with adjusted EPS projected to decline about 15% on a constant currency basis.

• Free cash flow for 2025 is expected to exceed $3 billion.

• 2026 expected to return to on-algorithm EPS growth, benefiting from anticipated cocoa price deflation.

• Currency translation is estimated to add 0.5% to net revenue growth and $0.053 to adjusted EPS for the year.

• Management expects continued volatility due to inflation, supply constraints, and geopolitical risks, but maintains a strong outlook for snacks revenue growth.