Mondelez International, Inc. · NASDAQ:MDLZ
Mondelez International — Q2 2024 Earnings Presentation
38 slides from Mondelez International's earnings presentation, Jul 30, 2024
Slide 1: Q2 2024 Results
SNACKING MADE RIGHT Q2 2024 RESULTS July 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: Solid First Half with Strong Profit Delivery
SOLID FIRST HALF WITH STRONG PROFIT DELIVERY 1. Solid top-line growth with strong pricing execution 2. European annual pricing complete, positioned well for H2 3. Emerging market growth of +MSD, despite boycotts 4. Strong profit dollar growth fueled by effective cost management and pricing 5. Strong
Slide 5: Solid H1 with Strong Profit Delivery & Reinvestment
SOLID H1 WITH STRONG PROFIT DELIVERY & REINVESTMENT Organic Net Adjusted Gross A&C Change Adjusted Free Cash Flow Revenue Growth Profit Growth1 in Spend1 EPS Growth1 Q2 +2.5% +11.3% +HSD +25.0% 2024 Vol/Mix -2.2pp Price +4.7pp YTD +3.4% +11.5% +HSD +20.4% $1.5B 2024 Vol/Mix -2.1pp Price +5.5pp 1 At
Slide 6: Snacking Remains Durable with Varying Consumer Trends by Region
SNACKING REMAINS DURABLE WITH VARYING CONSUMER TRENDS BY REGION • More consumers seeking price point to fit total ticket size • Biscuits category stabilizing with sequential improvement to our share North America • 2 largest US brands, Oreo & Ritz, gaining share YTD1 • Multipacks growing well as con
Slide 7: U.S. Focused Action-Plan to Drive Improved H2 Volume Results
U.S. FOCUSED ACTION-PLAN TO DRIVE IMPROVED H2 VOLUME RESULTS US Focused Actions Signs of share improvement … US – Oreo Value Share Change1 1 Increase distribution points across Food, Club & C-store 0.6pp 2 Add new, targeted promotions 0.3pp Add core packs of Oreo, Chips Ahoy!, 3 Ritz in $3 to $4 ran
Slide 8: Chocolate Category Continues to Be Advantaged in Snacking
CHOCOLATE CATEGORY CONTINUES TO BE ADVANTAGED IN SNACKING Chocolate category continues to grow MDLZ positioned well to deliver with volume resiliency sustainable, long-term growth Chocolate Category Growth1 • Cocoa price structure inverted, expect market correction to more sustainable price +12.2% •
Slide 9: Continuing to Deliver Against Our Strategic Growth Agenda
CONTINUING TO DELIVER AGAINST OUR STRATEGIC GROWTH AGENDA Scale sustainable snacking Drive M&A Expand distribution Reinvest into brands First Carbon- Chipita 7Days Neutral Plant growing volume East Suzhou, US Growth +HSD% in Europe China1 Channels YTD: YTD Star Wars Club +MSD% Oreo USA Value +DD% 1
Slide 10: Strategic Partnership with Lotus Biscoff
STRATEGIC PARTNERSHIP WITH LOTUS BISCOFF® TO DRIVE EUROPE CHOCOLATE GROWTH AND INDIA BISCUIT EXPANSION 10
Slide 11: Agenda
AGENDA 1 Business & Strategy Update – Van de Put 2 Financial Outcomes – Zaramella 3 2024 Outlook – Zaramella 4 Q&A – Van de Put & Zaramella 11
Slide 12: Strong Pricing Execution in H1, Results Impacted by Disruption
STRONG PRICING EXECUTION IN H1, RESULTS IMPACTED BY DISRUPTION Total MDLZ Organic Net Revenue Growth Emerging Markets Developed Markets 39% of Total MDLZ Revenue1 61% of Total MDLZ Revenue1 Q2 +2.5% +4.5% 2 +1.2% 2024 Vol/Mix -2.2% Vol/Mix -2.2% Vol/Mix -2.2% YTD +3.4% +6.5% +1.3% 2024 Vol/Mix -2.1%
Slide 13: Strong Pricing Execution in H1, Results Impacted by Disruption
STRONG PRICING EXECUTION IN H1, RESULTS IMPACTED BY DISRUPTION 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 Q2 +0.8% +5.6% +2.9% 2024 Vol/Mix -1.8% Vol/Mix -2.6% Vol/Mix -4.
Slide 14: Share Performance Impacted by US Biscuits and EU Disruption
SHARE PERFORMANCE IMPACTED BY US BISCUITS AND EU DISRUPTION Category Growth1 Snacks Revenue Gaining/Holding Share1 YTD 2024 ~65% ~40% +13.5% +7.4% +4.9% +1.7% Biscuits Chocolate Gum & Candy Total Snacks 2023 YTD'24 & Baked Snacks 1 Share performance and category growth based on available scanner dat
Slide 15: Strong Earnings Delivery Driven by Pricing Across All Regions
STRONG EARNINGS DELIVERY DRIVEN BY PRICING ACROSS ALL REGIONS Organic Net Revenue Growth and Adjusted OI Growth by Region Total MDLZ Europe North America AMEA Latin America Q2 ONR Growth Volume/Mix +2.5% -2.2pp +2.7% -3.1pp +0.3% -1.2pp +4.2% -1.8pp +4.5%1 -3.2pp 2024 Adj. OI Growth2 +22.1% +24.8% +
Slide 16: Strong Profit Dollar Growth Driven by Pricing and Cocoa Pipeline
STRONG PROFIT DOLLAR GROWTH DRIVEN BY PRICING EXECUTION AND COCOA PIPELINE FAVORABILITY VS FY’24 AVERAGE; REINVESTING FOR LT GROWTH Adjusted Gross Profit, Advertising & Consumer Promotions, Overheads and Operating Income Growth1 Q2 YTD’24 +HSD +LSD +HSD +LSD +11.5% +11.3% +22.1% +19.2% 16 1 At cst f
Slide 17: Operating Gains & Cocoa Pipeline Favorability Driving Profit Growth
OPERATING GAINS & COCOA PIPELINE FAVORABILITY VS FY’24 AVERAGE DRIVING STRONG REAL DOLLAR PROFIT GROWTH YTD 2024 EPS vs PY Adjusted, Fav/(Unfav) +20.4% (Cst Fx) +15.9% (Rpt Fx) YTD’2023 Operating Shares Coffee JVs Interest/ Taxes YTD’2024 Forex YTD’2024 Adjusted Gains Other Adj. EPS Adjusted EPS @ C
Slide 18: Strong Cash Flow Generation and Capital Deployment
STRONG CASH FLOW GENERATION AND CAPITAL DEPLOYMENT Free $1.5 billion YTD; flat vs PY Cash Flow CCC -45 days; +11 days favorable vs PY Share $1.1 billion YTD Repurchases $70.52 average price $1.2 billion YTD, up +$0.1 billion vs PY Dividends Announcing 11% dividend per share increase 18
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: Cocoa – Expected Timings
COCOA – EXPECTED TIMINGS Cocoa Key Market events Q1 grindings Q2 grindings Q3 grindings (proxy of demand) (proxy of demand) (proxy of demand) Apr May Jun Jul Aug Sep Oct Nov Dec High focus on 1ST good Good Main-crop First arrivals, Mid-crop weather, flowering indication of indication of farmer’s con
Slide 21: FY 2024 Outlook – Continue to Expect On-Algorithm Delivery
FY 2024 OUTLOOK – CONTINUE TO 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
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 Source: XE.com Full Year 20231 July 23rd Rate Impact vs 2023 Argentine Peso 296.50 / $US 926.11 / $US Australian Dollar US$0.66 / AUD US$0.66 / AUD Brazilian Real 4.99 / $US 5.57/ $US Canadian Dollar US$0.74 / CAD US$0.73 / 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
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
Slide 27: 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 June 30, 2024 Reported (GAAP) $ 1,232 $ 1,587 $ 2,874 $ 2,650 $ 8,343 Currency-related items 51 90
Slide 28: 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 June 30, 2024 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 8,343 $
Slide 29: 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 Six Months Ended June 30, 2024 Gross Operating Net Gross Profit Operating Income Revenues Profit Margin Income Margin Reported (GAAP) $ 17,633 $
Slide 30: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Three Months Ended June 30, 2024 2023 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 0.45 $ 0.69 $ (0.24) (34.8)% Simplify to Grow Program 0.01 0.01 - Mark-to-market (gains)/losses from de
Slide 31: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Diluted EPS to Adjusted EPS (Unaudited) For the Six Months Ended June 30, 2024 2023 $ Change % Change Diluted EPS attributable to Mondelēz International (GAAP) $ 1.49 $ 2.20 $ (0.71) (32.3)% Simplify to Grow Program 0.04 0.03 0.01 Mark-to-market (gains)/losses from d
Slide 32: 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 Six Months Ended June 30, 2024 2023 $ Change Net Cash Provided by Operating Activities (GAAP) $ 2,146 $ 1,973 $ 173 Capital Expenditur
Slide 33: 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 June 30, 2024 Reported (GAAP) $ 3,260 $ 5,083 $ 8,343 Currency-related items 193 23 216 Organic (Non-GAA
Slide 34: 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 June 30, 2024 Reported (GAAP) $ 3,260 $ 130 $ 3,130 Currency-related items 193 39 154 Organic (Non-GAAP)
Slide 35: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS Net Revenues to Organic Net Revenue (in millions of U.S. dollars) (Unaudited) North America For the Three Months Ended June 30, 2023 Reported (GAAP) $ 2,744 Divestitures (98) Acquisitions (240) Currency-related items 9 Organic (Non-GAAP) $ 2,415 For the Three Months
Slide 36: 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 June 30, 2024 Reported (GAAP) $ 4,3
Slide 37: 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 June 30, 2024 Unrealized G/(L) on General Latin North Hedging Corporate Amortization Other Mondelēz America AMEA Europe America Activities Expenses of Intangibles Items International Ne
Slide 38: GAAP to Non-GAAP Reconciliations: Segment Data
GAAP TO NON-GAAP RECONCILIATIONS Segment Data (in millions of U.S. dollars) (Unaudited) For the Six Months Ended June 30, 2024 Unrealized G/(L) on General Latin North Hedging Corporate Amortization Other Mondelēz America AMEA Europe America Activities Expenses of Intangibles Items International Net
Mondelez International — Q2 2024 Earnings Presentation on 6ix