Mondelez International (MDLZ) Q4 2023 earnings summary

Executive summary

• FY23 net revenue rose 14.4% to $36.016B; Organic Net Revenue grew 14.7%, with underlying volume/mix up 1.3%.

• Full-year Adjusted EPS was $3.19, up 19.0% at constant currency; Free Cash Flow increased $0.6B YoY to $3.602B.

Financial highlights

• Q4 net revenue rose 7.1% to $9.314B; Organic Net Revenue grew 9.8%, while underlying volume/mix declined 0.4%.

• FY23 reported operating income was $5.502B; Adjusted Operating Income was $5.634B, or $5.824B at constant FX. Adjusted operating income rose 19.2% at constant FX.

• Adjusted gross profit increased $2.171B at constant currency; reported gross profit increased $2.452B.

• FY23 reported diluted EPS was $3.62, up 84.7%; Adjusted EPS was $3.19, up 19.0% at constant currency. Q4 diluted EPS was $0.70; Adjusted EPS was $0.84, up 23.5% at constant currency.

• Reported gross margin was 38.2%, up 230 bps; adjusted gross margin was 37.5%, up 30 bps at constant currency.

Outlook and guidance

• FY24 Organic Net Revenue growth outlook is 3%–5%, with growth expected at the upper end; high-single-digit Adjusted EPS growth is expected at constant currency.

• FY24 Free Cash Flow is expected to be $3.5B or more; Adjusted EPS outlook is based on FY23 Adjusted EPS including developed-market gum.

• Currency translation is expected to reduce FY24 net revenue growth by ~0.5 percentage points and Adjusted EPS by $0.03; share repurchases are planned at ~$2B.

• Guidance reflects greater-than-usual geopolitical volatility; adjusted interest expense is expected at ~$325M and the adjusted effective tax rate in the low 20s.