Mondelez International (MDLZ) Q4 2024 earnings summary

Executive summary

• Achieved mid-single digit top-line growth and strong earnings in 2024, with balanced performance across developed and emerging markets.

• Generated $3.5 billion in free cash flow and returned $4.7 billion to shareholders via buybacks and dividends.

• Maintained robust brand investment, expanded digital channels, and executed strategic partnerships and portfolio reshaping.

• Advanced sustainability goals, sourcing 90% of cocoa through Cocoa Life and reducing carbon emissions by 38% since 2018.

• Completed the acquisition of Evirth in China and fully exited its JDE Peet's investment.

Financial highlights

• Organic net revenue grew 4.3% year-over-year; adjusted gross profit dollars up 5.1%.

• Adjusted EPS increased 13% year-over-year at constant FX; reported EPS down 5.5%.

• Free cash flow reached $3.5 billion, including a $400 million European Commission settlement.

• Gross margin rose to 39.1% and operating margin to 17.4% in 2024.

• Emerging markets grew 6.2% for the year; developed markets up 3.2%.

Outlook and guidance

• 2025 organic net revenue growth expected at ~5%; adjusted EPS projected to decline ~10% due to record cocoa costs.

• Free cash flow forecasted at $3 billion+; at least $3 billion in share repurchases planned.

• Currency translation estimated to reduce 2025 net revenue growth by ~2.5% and adjusted EPS by $0.12.

• EPS growth expected to resume in 2026, with magnitude dependent on cocoa price trends.

• Double-digit inflation anticipated in 2025, mainly from cocoa and labor.