Equipment & Supplies

Mondelez Q3 revenue jumps 4.9%, adjusted earnings stay flat

Logo provided.

November 3, 2020

Mondelēz International Inc. revenues rose 4.9% from $6.35 billion in 2019 to $6.66 billion in the third quarter ending Sept. 30, 2020, driven by a 4.4% boost in organic net revenue, according to an earnings release.

Diluted earnings per share fell 20.4% from 99 cents to 78 cents for the quarter, while adjusted EPS was 63 cents, flat on a constant currency basis, driven mostly by operating gains offset by unfavorable taxes.

Company shares traded at $54.03 today against a 52-week range of $41.19-$59.96.

"Our third quarter performance was strong across all key metrics, with broad-based revenue growth as demand remained elevated in developed markets and sequentially improved in emerging markets," Dirk Van de Put, chairman and CEO, said in the release. "Our teams are executing well and we continue to deliver share gains by meeting the needs of customers and consumers, despite the uncertainties caused by COVID-19. Our strategy remains unchanged and we are accelerating certain initiatives and increasing the investment behind our brands to further support long-term sustainable growth."

Gross profit increased $276 million and margin increased 230 basis points to 41.9% due to higher mark-to-market gains from currency and commodity derivatives and higher adjusted gross profit, which increased $152 million at constant currency while adjusted gross profit margin increased 20 basis points to 39.9% due to volume leverage, pricing and productivity, partially offset by higher raw material costs and incremental COVID-19 related costs.

Operating income increased $259 million and margin was 17%, up 320 basis points primarily due to favorable year-over-year mark-to-market gains from currency and commodity derivatives, higher adjusted operating income and lower restructuring expenses. Adjusted operating income increased $112 million at constant currency, and margin increased 70 basis points to 17.5% percent driven by SG&A leverage and adjusted gross profit margin expansion.

For 2020, the company expects organic net revenue growth of more than 3.5% and adjusted EPS growth of 5% on a constant-currency basis. Guidance is provided in the context of greater than usual volatility as a result of COVID-19.

For an update on how the coronavirus pandemic has affected convenience services, click here.