Mondelēz International Reports 7.7% Revenue Growth in Q2 2025, Completes Evirth Acquisition

Mondelēz International, Inc. reported a notable increase in its financial performance for the second quarter of 2025, with net revenues reaching $8.98 billion, a 7.7% increase from $8.34 billion in the same period last year. The company attributed this growth to higher net pricing, incremental revenue from its recent acquisition of Evirth, and favorable currency-related items. However, the company also faced challenges, including unfavorable volume/mix impacts, which slightly offset the revenue gains. For the first half of 2025, net revenues increased by 3.8% to $18.30 billion compared to $17.63 billion in the prior year.

Operating income for the second quarter surged by 37.2% to $1.17 billion, up from $854 million in the previous year. This increase was driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, as well as a reduction in acquisition-related costs. However, for the first six months of 2025, operating income decreased significantly by 48.3% to $1.85 billion, down from $3.58 billion in the same period last year, primarily due to substantial mark-to-market losses and costs associated with the ERP System Implementation program.

In terms of strategic developments, Mondelēz completed the acquisition of Evirth, a leading manufacturer of cakes and pastries in China, for approximately $255 million. This acquisition is expected to enhance the company's growth in the cakes and pastries category. The company also continued its share repurchase program, having repurchased approximately 27 million shares at an average cost of $58.33 per share during the first half of 2025, with $7.4 billion remaining under its current repurchase authorization.

Operationally, Mondelēz reported a decrease in net earnings attributable to the company, which fell to $641 million in the second quarter, a 6.7% increase from $603 million in the prior year, but a significant drop of 48.2% to $1.04 billion for the first half of 2025 compared to $2.01 billion in 2024. The diluted earnings per share for the second quarter increased to $0.49, up from $0.45, while for the first half, it decreased to $0.80 from $1.49. The company noted that the decrease in year-to-date earnings was influenced by higher raw material costs, unfavorable volume/mix, and costs related to the ERP System Implementation.

Looking ahead, Mondelēz remains optimistic about its revenue growth potential despite ongoing market volatility and inflationary pressures. The company plans to continue managing its operations proactively in response to the evolving economic landscape, focusing on maintaining its competitive edge in the global snacking market. The company also highlighted the importance of its strategic priorities, including consumer-centric growth and operational excellence, to drive long-term value for shareholders.