Mondelez International, Inc. · NASDAQ:MDLZ

Mondelez International — Q1 2024 Earnings Presentation

31 slides from Mondelez International's earnings presentation, Apr 30, 2024

  1. Slide 1: Q1 2024 Results

    Q1 2024 RESULTS April 30, 2024

  2. 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

  3. 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

  4. Slide 4: Solid start to the year with strong profit delivery

    SOLID START TO THE YEAR WITH STRONG PROFIT DELIVERY 1. Solid top-line growth with strong pricing execution 2. Continued momentum in Emerging Markets 3. Strong profit dollar growth from effective cost management and pricing 4. Strong free cash flow generation of $1B 5. Continued brand & capabilities

  5. Slide 5: Solid start to the year with strong profit delivery: key metrics

    SOLID START TO THE YEAR WITH STRONG PROFIT DELIVERY Organic Net Adjusted Gross A&C Change Adjusted Free Cash Flow Revenue Growth Profit Growth1 in Spend1 EPS Growth1 Q1 +4.2% +11.6% +HSD +16.3% $1.0B 2024 Vol/Mix -2.1pp Price +6.3pp 5 1 At cst FX

  6. Slide 6: MDLZ core categories continuing to demonstrate resilience

    MDLZ CORE CATEGORIES CONTINUING TO DEMONSTRATE RESILIENCE North America Europe Emerging Markets consumer confidence MIXED consumer confidence STABLE consumer confidence Strong Volume Volume Volume Change Change Change L3M L3M L3M -1.1%US Biscuits +1.0% Biscuits & Chocolate +3.3% Biscuits & Chocolate

  7. Slide 7: Focus and accelerate our strategic growth agenda

    FOCUS AND ACCELERATE OUR STRATEGIC GROWTH AGENDA Scale sustainable snacking Drive M&A Expand distribution Reinvest into brands 2050 net-zero Ricolino targets ERP system validated by SBTi +100k stores integration in Q1 added in 200 years emerging markets Cadbury UK in Q11 7 1 Internal Sales & Distrib

  8. Slide 8: Strong, resilient and agile chocolate business

    STRONG, RESILIENT AND AGILE CHOCOLATE BUSINESS Chocolate category is growing volume Structurally advantaged despite significant pricing with large growth opportunities Chocolate Category Growth1 Low High private +14.3% +14.1% brand label Large EM loyalty opportunity Iconic +8.3% brand +7.3% portfoli

  9. Slide 9: Agenda

    AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2024 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 9

  10. Slide 10: Solid top-line growth with strong pricing execution in Q1

    SOLID TOP-LINE GROWTH WITH STRONG PRICING EXECUTION IN Q1 Total MDLZ Organic Net Revenue Growth Emerging Markets Developed Markets 39% of Total MDLZ Revenue1 61% of Total MDLZ Revenue1 Q1 2024 Q1 2024 Q1 2024 +4.2% +8.3% +1.4% Vol/Mix Vol/Mix Vol/Mix -2.1% +0.1% -3.6% 10 1 FY23 net revenues; 2 +7.8%

  11. Slide 11: Core category growth impacted by softness in US biscuits

    CORE CATEGORY GROWTH IMPACTED BY SOFTNESS IN US BISCUITS Biscuits & Baked Snacks Chocolate Gum & Candy Revenue Growth Revenue Growth Revenue Growth 49% of Total MDLZ Revenue1 30% of Total MDLZ Revenue1 12% of Total MDLZ Revenue1 Q1 2024 Q1 2024 Q1 2024 +0.6% +5.8% +12.9% Vol/Mix Vol/Mix Vol/Mix -3.2

  12. Slide 12: Share performance impacted by US biscuits

    SHARE PERFORMANCE IMPACTED BY US BISCUITS Category Growth1 Snacks Revenue Gaining/Holding Share1 YTD 2024 ~65% +15.7% ~40% +14.1% +7.4% +1.8% Biscuits Chocolate Gum & Candy Total Snacks 2023 YTD'24 & Baked Snacks 1 Share performance and category growth based on available scanner data from several ex

  13. Slide 13: All regions delivering solid top- and bottom-line growth

    ALL REGIONS DELIVERING SOLID TOP- AND BOTTOM-LINE GROWTH Q1 2024 Total MDLZ Europe North America AMEA Latin America Organic NR Growth +4.2% +4.4% +1.3% +5.9% +7.1%1 Volume/Mix -2.1pp -3.5pp -2.1pp -0.2pp -1.2pp Adj. OI Growth2 +16.8% +20.7% +2.1% +20.2% +33.3% 13 1 +5.3% ex-Argentina; 2 At cst fx

  14. Slide 14: Strong profit dollar increase and reinvestment for LT growth

    STRONG PROFIT DOLLAR INCREASE AND REINVESTMENT FOR LT GROWTH Adjusted Gross Profit, Advertising & Consumer Promotions, Overheads and Operating Income Growth1 Q1 2024 +HSD +LSD +11.6% +16.8% 14 1 At cst fx

  15. Slide 15: Operating gains driving strong real dollar profit growth

    OPERATING GAINS DRIVING STRONG REAL DOLLAR PROFIT GROWTH Q1 2024 EPS vs PY Adjusted, Fav/(Unfav) +16.3% (Cst Fx) +10.5% (Rpt Fx) Q1’2023 Operating Shares Coffee JVs Interest/ Taxes Q1’2024 Forex Q1’2024 Adjusted Gains Other Adj. EPS Adjusted EPS @ Cst FX EPS 15

  16. Slide 16: Strong cash flow generation and capital deployment

    STRONG CASH FLOW GENERATION AND CAPITAL DEPLOYMENT Free  $1.0 billion; up +$0.1 billion vs PY Cash Flow  CCC -42 days; +11 days favorable vs PY Share  $0.6 billion Repurchases  $72.99 average price Dividends  $0.6 billion, up +$0.1 billion vs PY 16

  17. Slide 17: Agenda

    AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2024 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 17

  18. Slide 18: Cocoa – fully covered for 2024, while market remains dynamic

    COCOA – FULLY COVERED FOR 2024, WHILE MARKET REMAINS DYNAMIC Coverage Pricing Supply Chain ~70% Growing Fully Typically RGM to Mindful sourced supply covered 12+ minimize of critical from from for 2024 months elasticities price points West Africa LA/AMEA 18

  19. Slide 19: 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

  20. Slide 20: Q&A

    Q&A Dirk Van de Put Luca Zaramella Chairman & CEO CFO 20

  21. Slide 21: Mondelez International – Snacking Made Right

    Mondelez, International SNACKING MADE RIGHT

  22. Slide 22: 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 Apr 23rd Rate Impact vs 2023 Argentine Peso 296.50 / $US 872.74 / $US Australian Dollar US$0.66 / AUD US$0.65 / AUD Brazilian Real 4.99 / $US 5.15/ $US Canadian Dollar US$0.74 / CAD US$0.73 / CAD Chinese Yuan 7

  23. Slide 23: 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

  24. Slide 24: Additional non-GAAP financial measures definitions

    ADDITIONAL NON-GAAP FINANCIAL MEASURES DEFINITIONS “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 obscure tr

  25. Slide 25: GAAP to non-GAAP reconciliations: net revenues to organic

    GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) Latin North Mondelēz Emerging Developed America AMEA Europe America International Markets Markets For the Three Months Ended March 31, 2024 Reported (GAAP) $ 1,319 $ 1,950 $ 3,368 $ 2,653 $

  26. Slide 26: GAAP to non-GAAP reconciliations: net revenues to organic

    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 March 31, 2024 Reported (GAAP) $ 3,733 $ 127 $ 3,606 Short-term distributor agreements (3) - (3) Currenc

  27. Slide 27: GAAP to non-GAAP reconciliations: gross profit and operating income

    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 March 31, 2024 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 9,290

  28. Slide 28: GAAP to non-GAAP reconciliations: diluted EPS to adjusted EPS

    GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Three Months Ended March 31, 2024 2023 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 1.04 $ 1.52 $ (0.48) (31.6)% Simplify to Grow Program 0.03 0.02 0.01 Mark-to-market (gains)/losses fro

  29. Slide 29: GAAP to non-GAAP reconciliations: free cash flow

    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 Three Months Ended March 31, 2024 2023 $ Change Net Cash Provided by Operating Activities (GAAP) $ 1,324 $ 1,123 $ 201 Capital Expendi

  30. Slide 30: GAAP to non-GAAP reconciliations: organic net revenue by sector

    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 March 31, 2024 Reported (GAAP) $ 4,

  31. Slide 31: GAAP to non-GAAP reconciliations: segment data

    GAAP TO NON-GAAP RECONCILIATIONS Segment Data (in millions of U.S. dollars) (Unaudited) For the Three Months Ended March 31, 2024 Unrealized G/(L) on General Latin North Hedging Corporate Amortization Other Mondelēz America AMEA Europe America Activities Expenses of Intangibles Items International N

Mondelez International — Q1 2024 Earnings Presentation on 6ix