Mondelēz International Reports 0.2% Revenue Increase to $9.313 Billion in Q1 2025

Mondelēz International, Inc. reported a slight increase in net revenues for the first quarter of 2025, reaching $9.313 billion, up 0.2% from $9.290 billion in the same period last year. The growth was primarily driven by higher net pricing and incremental revenue from the acquisition of Evirth, a Chinese manufacturer of cakes and pastries, which contributed $99 million. However, this growth was partially offset by unfavorable currency-related items and a decline in volume/mix, particularly in developed markets. The company's operating income saw a significant decline of 75.1%, dropping to $680 million from $2.727 billion in the prior year, largely due to mark-to-market losses on commodity and foreign currency derivatives.

Net earnings attributable to Mondelēz International fell sharply by 71.5% to $402 million, compared to $1.412 billion in the first quarter of 2024. This decline was reflected in diluted earnings per share, which decreased to $0.31 from $1.04, marking a 70.2% drop. The decrease in profitability was attributed to unfavorable changes in commodity prices, increased operational costs, and expenses related to the ongoing ERP System Implementation program. Adjusted earnings per share also decreased by 20.4% to $0.74, indicating a challenging operating environment.

Operationally, Mondelēz experienced mixed results across its geographic segments. North America reported a 4.1% decline in net revenues to $2.544 billion, while Europe saw a 5.4% increase to $3.550 billion. The AMEA region grew by 3.4% to $2.016 billion, bolstered by the Evirth acquisition. In contrast, Latin America faced an 8.8% revenue decline, primarily due to unfavorable currency impacts and volume declines. The overall operating income margin decreased significantly from 29.4% to 7.3%, reflecting the pressures from rising raw material costs and unfavorable product mix.

Looking ahead, Mondelēz anticipates continued volatility in the macroeconomic environment, including inflationary pressures and geopolitical uncertainties that could impact consumer demand and operational costs. The company remains focused on managing these challenges while pursuing growth opportunities through strategic initiatives, including the ERP System Implementation, which is expected to enhance operational efficiency over the next few years. Despite the current challenges, Mondelēz maintains a positive outlook for long-term growth in the snacking sector, supported by its strong portfolio of brands and market presence.