Zinger Key Points
- Mondelez's Q4 sales and adjusted EPS miss estimates.
- Mondelez expects adjusted EPS to decline 10% due to cocoa cost inflation.
- Brand New Membership Level: Benzinga Trade Alerts
Snacks giant Mondelez International Inc MDLZ shares are trading lower in premarket on Wednesday.
The company reported fourth-quarter sales growth of 3.1% year-on-year to $9.60 billion, missing the analyst consensus estimate of $9.64 billion.
Adjusted EPS of $0.65 also missed the consensus estimate of $0.66.
Revenues in Asia, Middle East & Africa surged 9.9% whereas Latin America plunged 7.2%. Revenue from Europe and North America increased 5.8% and 0.1% respectively.
Gross profit for the quarter climbed 6.9% to $3.71 billion and the gross margin expanded 130 basis points to 38.6%.
Operating income jumped 35% to $1.61 billion and the operating margin expanded 400 basis points to 16.8%.
The operating cash flow for the twelve months totaled $4.9 billion, with a free cash flow of $3.5 billion.
“As we transition into 2025, we remain focused on executing against our long-term growth strategy and delivering on our chocolate business playbook to navigate unprecedented cocoa cost inflation,” said Chair and CEO Dirk Van de Put.
Outlook: Mondelez expects FY25 organic net revenue growth to be approximately 5%.
The company expects adjusted EPS to decline approximately 10% on a constant currency basis due to unprecedented cocoa cost inflation.
Mondelez sees FY25 free cash flow of over $3 billion. The company estimates currency translation would decrease full-year net revenue growth by approximately 2.5% and negatively impact Adjusted EPS by $0.12.
Price Action: MDLZ shares are trading lower by 4.44% at $53.63 in premarket at the last check Wednesday.
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