Mondelez International, Inc. · NASDAQ:MDLZ
Mondelez International — Q4 2023 Earnings Presentation
47 slides from Mondelez International's earnings presentation, Jan 30, 2024
Slide 1: Q4 2023 Results
Q4 2023 RESULTS January 30, 2024
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws. Words, and variations of words, such as “will,” “may,” “expect,” “would,” “cou
Slide 3: Agenda
AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2024 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 3
Slide 4: Delivered high quality 2023 results and well positioned for 2024 & beyond
DELIVERED HIGH QUALITY 2023 RESULTS AND WELL POSITIONED FOR 2024 & BEYOND 1. Robust +DD top-line growth with strong pricing execution and volume/mix growth 2. Continued share improvements 3. Record gross profit dollar growth of $2.2B through ongoing cost discipline and pricing to offset cost inflati
Slide 5: Top- and bottom-line strength with substantial reinvestment
TOP- AND BOTTOM-LINE STRENGTH WITH SUBSTANTIAL REINVESTMENT +$4.6B +$2.2B +$0.9B vs PY vs PY vs PY +21.6% +18.8% +19.2% +19.0% +14.7% +12.3% +12.2% +13.1% +11.9% +11.7% +9.5% +6.9% +6.1% +4.6% +4.2% Price Price Price V/M V/M V/M 19-21 2022 2023 19-21 2022 2023 19-21 2022 2023 19-21 2022 2023 19-21 2
Slide 6: Consistent relative TSR outperformance
CONSISTENT RELATIVE TSR OUTPERFORMANCE Total Shareholder Return 5-year 4-year 3-year 2-year 1-year +15.1% +9.5% +9.9% +11.2% Total Shareholder +8.1% Return +7.0% +4.2% +3.5% +0.5% MDLZ Peers MDLZ Peers MDLZ Peers MDLZ Peers MDLZ Peers -4.5% MDLZ Rank #1 #1 #1 #1 #2 6 1 Source: FactSet. Peers based o
Slide 7: Continuing to deliver against strategic growth agenda
CONTINUING TO DELIVER AGAINST STRATEGIC GROWTH AGENDA Significant reinvestments Integrated in brands, +600k stores acquisitions, people, and added in and divested capabilities US supply chain DM Gum emerging $10B+ in global stabilized markets1 revenues for Oreo, Milka & Cadbury 7 1 Nielsen Global Da
Slide 8: Right focus and execution in building a more sustainable snacking company
RIGHT FOCUS AND EXECUTION IN BUILDING A MORE SUSTAINABLE SNACKING COMPANY Ingredients Climate Packaging Consumer Well-Being Signature sourcing Combat climate change Less and better Empower consumers programs through science-based packaging with contemporary well- targets being options 2023 2023 2023
Slide 9: Strategy working while navigating through volatile environment
STRATEGY WORKING WHILE NAVIGATING THROUGH VOLATILE ENVIRONMENT NEAR TERM MDLZ WELL POSITIONED THEMES TO DELIVER AN ON-ALGO YEAR Continued EM momentum Distribution opportunities in Retailer pushback sentiment in majority of key markets both EM and DM US Consumer supply shortages GLP-1 Resilient categ
Slide 10: Agenda
AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2024 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 10
Slide 11: 2023 Results Total Mondelez - Reconciliation
2023 RESULTS TOTAL MONDELEZ - RECONCILIATION DM Gum Total MDLZ FY 2023 Adj. FY 2023 impact to incl. DM Gum Adjusted Adjusted Net Revenue $36.0 $35.5B -$0.5B Organic Net Revenue Growth +14.7% -0.3pp Operating Income $5.8B $5.6B -$0.2B EPS $3.30 $3.19 -$0.11 11
Slide 12: Balanced strength across emerging and developed markets
BALANCED STRENGTH ACROSS EMERGING AND DEVELOPED MARKETS MDLZ Organic Net Revenue Growth Emerging Markets Developed Markets 39% of Total MDLZ Revenue1 61% of Total MDLZ Revenue1 +22.0% +20.4%2 +14.7% +14.9%2 +12.3% +11.1% +9.8% +7.2% +6.9% +6.6% +4.6% +3.2% FY19-21 FY22 Q4'23 FY'23 FY19-21 FY22 Q4'23
Slide 13: Consistent high-quality chocolate, biscuit & baked snacks growth
CONSISTENT HIGH-QUALITY CHOCOLATE, BISCUIT & BAKED SNACKS GROWTH Biscuits & Baked Snacks Revenue Growth Chocolate Revenue Growth Gum2 & Candy Revenue Growth 49% of Total MDLZ Revenue1 30% of Total MDLZ Revenue1 12% of Total MDLZ Revenue1 +28.0% +28.7% +20.7% +14.5% +11.7% +11.9% +10.5% +11.2% +5.4%
Slide 14: Strong share performance
STRONG SHARE PERFORMANCE Category Growth1 Snacks Revenue Gaining/Holding Share1 FY 2023 FY 2023 ~65% +19.7% +15.0% ~40% +12.8% +10.4% Biscuits Chocolate Gum & Candy Total Snacks 2022 2023 & Baked Snacks 1 Share performance and category growth based on available scanner data from several external sou
Slide 15: Significant step-up in profit delivery in 2023 across all regions
SIGNIFICANT STEP-UP IN PROFIT DELIVERY IN 2023 ACROSS ALL REGIONS MDLZ EU NA AMEA LA 1 Q4 +9.8% +11.6% +1.9% +7.9% +28.6% Organic Net Vol/Mix -0.4pp +3.3pp -5.5pp -0.2pp +2.1pp Revenue Growth FY’23 +14.7% +14.5% +9.5% +11.7% +34.8% 1 Vol/Mix +1.3pp +0.7pp flat +3.1pp +3.8pp Adjusted Q4 +12.2% +1.6%
Slide 16: Strong profitability driving substantial reinvestment for growth
STRONG PROFITABILITY DRIVING SUBSTANTIAL REINVESTMENT FOR GROWTH Adjusted Gross Profit, Advertising & Consumer Promotions, Overheads and Operating Income Growth1 Q4 FY’23 +$2,170M +DD +DD +18.8% +DD +17.4% +DD +19.2% +12.2% 16 1 At cst fx
Slide 17: Strong double-digit EPS expansion at reported dollars
STRONG DOUBLE-DIGIT EPS EXPANSION AT REPORTED DOLLARS 2023 EPS vs PY Adjusted, Fav/(Unfav) +19.0% (Cst Fx) +14.3% (Rpt Fx) 2022 Operating Shares Coffee Interest/ Taxes 2023 Forex 2023 DM Gum 2023 Adjusted Gains JVs Other Adj. EPS Adjusted Adj. EPS EPS @ Cst FX EPS incl. DM Gum Q4 $0.68 $0.09 $0.01 $
Slide 18: Strong cash flow generation and capital deployment
STRONG CASH FLOW GENERATION AND CAPITAL DEPLOYMENT Free $3.6 billion; up +$0.6 billion vs PY Cash incl. one-time tax cash payment of $0.4 billion related to coffee sales Flow CCC -38 days; +3 days favorable vs PY Share $1.5 billion Repurchases $69.49 average price Dividends $2.2 billion, u
Slide 19: Agenda
AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2024 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 19
Slide 20: FY 2024 Outlook – Expect on-algorithm delivery
FY 2024 OUTLOOK – EXPECT ON-ALGORITHM DELIVERY Organic Net Adjusted EPS Free Outlook Revenue Growth Growth (cst. Fx) Cash Flow FY24 Upper-end 3-5% 3-5% HSD% HSD% $3B+ $3.5B+ Mid-point Based on ‘23 Adj. EPS incl. DM Gum LT Algo 2024E LT Algo 2024E LT Algo 2024E FY24 Planning Inflation Adj. Interest A
Slide 21: 2024 EPS outlook on algorithm, offsetting divestiture impact of DM Gum
2024 EPS OUTLOOK ON ALGORITHM, EXPECTING TO ALMOST FULLY OFFSET DIVESTITURE IMPACT OF DEVELOPED MARKET GUM EPS Outlook 2024 Adjusted, Fav/(Unfav) +HSD -$0.03 $3.30 -$0.11 $3.19 2023 DM Gum 2023 2024E Forex 2024E Adj. EPS impact Adjusted Adj. EPS Adj. EPS incl. DM Gum EPS @ Cst FX @ Rpt FX 21
Slide 22: Q&A
Q&A Dirk Van de Put Luca Zaramella Chairman & CEO CFO 22
Slide 23: Mondelez International – Snacking Made Right
Mondelez, International SNACKING MADE RIGHT
Slide 24: Spot rates versus 2023 average FX rates for key countries
SPOT RATES VERSUS 2023 AVERAGE FX RATES FOR KEY COUNTRIES 1 Source: XE.com Full Year 2023 Jan 24th Rate Impact vs 2023 Argentine Peso 296.50 / $US 822.54 / $US Australian Dollar US$0.66 / AUD US$0.66 / AUD Brazilian Real 4.99 / $US 4.92/ $US Canadian Dollar US$0.74 / CAD US$0.74 / CAD Chinese Yuan 7
Slide 25: Outlook
OUTLOOK Our outlook for Organic Net Revenue growth, Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense, Net, Adjusted Effective Tax Rate and Free Cash Flow for full-year 2024 are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability o
Slide 26: Additional Non-GAAP Financial Measures Definitions 1/2
ADDITIONAL NON-GAAP FINANCIAL MEASURES DEFINITIONS 1/2 “Adjusted Net Revenue” is defined as net revenues (the most comparable U.S. GAAP financial measure) excluding the impacts of divestitures and short- term distributor agreements related to the sale of a business. “Adjusted Net Revenue including t
Slide 27: Additional Non-GAAP Financial Measures Definitions 2/2
ADDITIONAL NON-GAAP FINANCIAL MEASURES DEFINITIONS 2/2 “Adjusted A&C” is defined as advertising and consumer promotions (the most comparable U.S. GAAP financial measure) excluding divestitures and incremental costs incurred due to the war in Ukraine. We excluded the items which we believe may obscur
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Mondelēz International 3 Year For the Twelve Months Ended December 31, 2019 2020 2021 Avg/CAGR 2022 Reported (GAAP) $ 25,868 $ 26,581 $ 28,720 $ 31,496 Divestitures (667) (482) (533) (498)
Slide 29: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Latin North Mondelēz America AMEA Europe America International For the Three Months Ended December 31, 2023 Reported (GAAP) $ 1,262 $ 1,736 $ 3,538 $ 2,778 $ 9,314 Divestitures - - - (1) (1
Slide 30: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Gross Profit To Adjusted Gross Profit (in millions of U.S. dollars) (Unaudited) Mondelēz International 3 Year For the Twelve Months Ended December 31, 2019 2020 2021 Avg/CAGR 2022 Reported (GAAP) $ 10,337 $ 10,446 $ 11,254 $ 11,312 Simplify to Grow Program 101 90 114
Slide 31: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Operating Income to Adjusted Operating Income (in millions of U.S. dollars) (Unaudited) Mondelēz International 3 Year For the Twelve Months Ended December 31, 2019 2020 2021 Avg/CAGR 2022 Reported (GAAP) $ 3,843 $ 3,853 $ 4,653 $ 3,534 Simplify to Grow Program 442 36
Slide 32: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Gross Profit/Operating Income to Adjusted Gross Profit/Operating Income (in millions of U.S. dollars) (Unaudited) For the Three Months Ended December 31, 2023 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 9,3
Slide 33: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Gross Profit/Operating Income to Adjusted Gross Profit/Operating Income (in millions of U.S. dollars) (Unaudited) For the Twelve Months Ended December 31, 2023 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 36
Slide 34: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Advertising and Consumer Promotions To Adjusted Advertising and Consumer Promotions (in millions of U.S. dollars) (Unaudited) Mondelēz International 3 Year For the Twelve Months Ended December 31, 2019 2020 2021 Avg/CAGR 2022 2023 Reported (GAAP) $ 2,227 $ 2,236 $ 2,
Slide 35: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) Mondelēz International 3 Year For the Twelve Months Ended December 31, 2019 2020 2021 Avg/CAGR 2022 Diluted EPS attributable to Mondelēz International (GAAP) $ 2.69 $ 2.47 $ 3.04 $ 1.96 Simplify to Grow Program 0.24 0.20 0.17 0
Slide 36: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Three Months Ended December 31, 2023 2022 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 0.70 $ 0.42 $ 0.28 66.7 % Simplify to Grow Program 0.04 0.03 0.01 Mark-to-market (gains)/losses fro
Slide 37: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Twelve Months Ended December 31, 2023 2022 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 3.62 $ 1.96 $ 1.66 84.7 % Simplify to Grow Program 0.08 0.07 0.01 Intangible asset impairment char
Slide 38: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Segment Data (in millions of U.S. dollars) (Unaudited) For the Three Months Ended December 31, 2023 Unrealized G/(L) on General Latin North Hedging Corporate Amortization Other Mondelēz America AMEA Europe America Activities Expenses of Intangibles Items Internationa
Slide 39: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Segment Data (in millions of U.S. dollars) (Unaudited) For the Twelve Months Ended December 31, 2023 Unrealized G/(L) on General Latin North Hedging Corporate Amortization Other Mondelēz America AMEA Europe America Activities Expenses of Intangibles Items Internation
Slide 40: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Emerging Markets Developed Markets 3 Year 3 Year For the Twelve Months Ended December 31, 2019 2020 2021 Avg/CAGR 2022 2019 2020 2021 Avg/CAGR 2022 Reported (GAAP) $ 9,675 $ 9,097 $ 10,132
Slide 41: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Emerging Developed Mondelēz Markets Markets International For the Three Months Ended December 31, 2023 Reported (GAAP) $ 3,580 $ 5,734 $ 9,314 Divestitures (1) - (1) Short-term distributor
Slide 42: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Emerging Emerging Markets ex. Markets Argentina Argentina For the Three Months Ended December 31, 2023 Reported (GAAP) $ 3,580 $ 136 $ 3,444 Divestitures (1) - (1) Short-term distributor ag
Slide 43: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Emerging Emerging Markets ex. Markets Argentina Argentina For the Twelve Months Ended December 31, 2023 Reported (GAAP) $ 14,011 $ 574 $ 13,437 Divestitures (5) - (5) Short-term distributor
Slide 44: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue by Consumer Sector (in millions of U.S. dollars) (Unaudited) Biscuits & Baked Gum & Total Cheese & Mondelēz Snacks Chocolate Candy Snacks Beverage Grocery International For the Twelve Months Ended December 31, 2021 Reported (GAAP)
Slide 45: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue by Consumer Sector (in millions of U.S. dollars) (Unaudited) Biscuits & Baked Gum & Total Cheese & Mondelēz Snacks Chocolate Candy Snacks Beverage Grocery International For the Three Months Ended December 31, 2023 Reported (GAAP) $
Slide 46: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Reported Net Earnings and Tax Rate to Adjusted Net Earnings and Tax Rate (in millions of U.S. dollars) (Unaudited) For the Twelve Months Ended December 31, 2023 Benefit Gain on Equity plan non- Interest Earnings equity method Non- Net Earnings service and other Marke
Slide 47: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Cash Provided by Operating Activities to Free Cash Flow (in millions of U.S. dollars) (Unaudited) Mondelēz International For the Twelve Months Ended December 31, 2023 2022 $ Change Net Cash Provided by Operating Activities (GAAP) $ 4,714 $ 3,908 $ 806 Capital Exp
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