Company Reports

Even amid the recent volatility around cocoa prices, CEO Dirk Van de Put hasn't wavered from his commitment to drive balanced sales and profit growth at wide-moat Mondelez. As a part of these efforts, it has worked to extend the distribution of its fare, fund investments behind its local and global brands, empower its local leaders, and expedite the process through which it brings innovation to market (aims that are hitting the mark). Against this backdrop, Mondelez targets long-term sales growth of 3%-5% as it seeks to sell its wares across more channels and to reinvest in new products aligned with evolving consumer trends at home and abroad. Further, it has prudently acquired niche brands to expand its category and geographic exposure, and we anticipate it will continue to pursue inorganic targets when the opportunity arises.

Mondelez posted 2.2% organic sales growth in the second quarter, reflecting a 1.5% price increase and a 0.7% benefit from higher volumes and a favorable mix. While the adjusted operating margin slipped 120 basis points to 13.1%, this followed a double-digit percentage increase in brand spending.

Even amid the recent volatility around cocoa prices, CEO Dirk Van de Put hasn't wavered from his commitment to drive balanced sales and profit growth at wide-moat Mondelez. As a part of these efforts, it has worked to extend the distribution of its fare, fund investments behind its local and global brands, empower its local leaders, and increase the agility by which it brings innovation to market (aims that are hitting the mark). Against this backdrop, Mondelez targets long-term sales growth of 3%-5% as it seeks to sell its wares across more channels and to reinvest in new products aligned with evolving consumer trends at home and abroad. Further, it has prudently acquired niche brands to expand its category and geographic exposure, and we anticipate it will continue to pursue inorganic targets when the opportunity arises.

Mondelez cooked up 3% organic sales growth in the first quarter, with a 3.5% benefit from higher prices offsetting a 0.5% decline in volume. Its adjusted operating margin shrank 310 basis points to 11.7% as productivity savings were unable to blunt cocoa inflation and stepped-up brand spending.

Even amid the recent volatility around cocoa prices, CEO Dirk Van de Put hasn't wavered from his commitment to drive balanced sales and profit growth at wide-moat Mondelez. As a part of these efforts, it has worked to extend the distribution of its fare, fund investments behind its local and global brands, empower its local leaders, and increase the agility by which it brings innovation to market (aims that are hitting the mark). Against this backdrop, Mondelez targets long-term sales growth of 3%-5% as it seeks to sell its wares across more channels and to reinvest in new products aligned with evolving consumer trends at home and abroad. Further, it has prudently acquired niche brands to expand its category and geographic exposure, and we anticipate it will continue to pursue inorganic targets when the opportunity arises.

Organic sales popped 5% in the final three months of Mondelez's fiscal 2025, on the heels of a nearly 10% benefit from higher prices. However, the adjusted gross margin declined by 100 basis points to 30.5% as inflation and an unfavorable mix outweighed higher prices and lower manufacturing costs.

Even amid the recent turmoil around cocoa prices, CEO Dirk Van de Put hasn't wavered from his commitment to drive balanced sales and profit growth at wide-moat Mondelez. Instead, it has worked to extend the distribution of its fare, fund investments behind its local and global brands, empower its local leaders, and increase the agility by which it brings innovation to market (aims that are hitting the mark). Against this backdrop, Mondelez targets long-term sales growth of 3%-5 % as it seeks to sell its wares across more channels and reinvests in new products aligned with evolving consumer trends at home and abroad. Further, it has prudently acquired niche brands to expand its category and geographic exposure, and we anticipate it will continue to pursue inorganic targets when the opportunity arises.

Mondelez's organic sales grew 3.4%, as higher prices (up 8%) offset a volume decline (4.6%). Cocoa costs ate into the adjusted operating margin, down 690 basis points to 12%. Management trimmed its full-year organic sales and adjusted EPS targets to at least 4% growth (from 5%) and down 15% (10%).

Even amid the recent turmoil around cocoa prices, CEO Dirk Van de Put hasn't wavered from his commitment to drive balanced sales and profit growth at wide-moat Mondelez. Rather, it has worked to extend the distribution of its fare, fund investments behind its local and global brands, empower its local leaders, and increase the agility with which it brings innovation to market (aims that are hitting the mark). Against this backdrop, Mondelez targets 3%-5% sales growth long term as it strives to sell its wares in more channels and reinvests in new products aligned with evolving consumer trends at home and abroad. Further, it has prudently made acquisitions of niche brands to build out its category and geographic exposure, and we anticipate it will continue to pursue inorganic targets when the opportunity arises.

Organic sales jumped 5.6% in Mondelez's second quarter on a 7.1% price increase that was only partially offset by a 1.5% volume drawdown. Cocoa inflation continued to eat away at profit, with adjusted gross and operating margins off 680 and 360 basis points, respectively, to 33.7% and 14.3%.

Even amid the recent turmoil around cocoa prices, CEO Dirk Van de Put hasn't wavered from his commitment to drive balanced sales and profit growth at wide-moat Mondelez by extending the distribution of its fare, funding investments behind its local and global brands, empowering its local leaders, and increasing the agility with which it brings innovation to market (aims that are hitting the mark). Against this backdrop, Mondelez targets 3%-5% sales growth long term as it works to sell its wares in more channels and reinvests in new products aligned with evolving consumer trends at home and abroad. Further, it has prudently made acquisitions of niche brands to build out its category and geographic exposure, and we anticipate it will continue to pursue inorganic targets when the opportunity arises.

Mondelez's first-quarter adjusted operating margin cratered 370 basis points to just 14.8% even as organic sales popped 3.1% on a 6.6% benefit from higher pricing.

Since taking the helm at Mondelez more than seven years ago, CEO Dirk Van de Put has orchestrated a plan to drive balanced sales and profit growth by extending the distribution of its fare, fueling investments behind its local and global brands, empowering its local leaders, and increasing the agility with which it brings innovation to market (aims that are hitting the mark). Against this backdrop, Mondelez targets 3%-5% sales growth long term as it works to sell its wares in more channels and reinvests in new products aligned with evolving consumer trends at home and abroad. Further, it has prudently made acquisitions of niche brands to build out its category and geographic exposure, and we anticipate it will continue to pursue inorganic targets when the opportunity arises.

Organic sales jumped 5.2% in Mondelez's fourth quarter, on top of nearly 10% growth last year. However, the rout in margins on rampant cocoa inflation took center stage, with the adjusted gross margin collapsing 650 basis points to 31.5%.

Mondelez has authorized $9 billion for share repurchases, which follows a nearly 11% boost in the quarterly dividend in July. Management also confirmed its unchanged capital-allocation priorities: investing in the business, pursuing bolt-on acquisitions, and returning cash to shareholders.

Bloomberg reported that Mondelez has approached Hershey about a potential takeover. This would mark the second time in the past eight years that Mondelez sought a deal with the leading domestic chocolate manufacturer, souring on its prior attempt within a few months' time.

Since taking the helm at Mondelez about seven years ago, CEO Dirk Van de Put has orchestrated a plan to drive balanced sales and profit growth by extending the distribution of its fare, fueling investments behind its local and global brands, empowering its local leaders, and increasing the agility with which it brings innovation to market (aims that are hitting the mark). Against this backdrop, Mondelez targets 3%-5% sales growth long term as it works to sell its wares in more channels and reinvests in new products aligned with consumer trends at home and abroad. Further, it has prudently made acquisitions of niche brands to build out its category and geographic exposure, and we anticipate it will continue to pursue inorganic targets when the opportunity arises.

Organic sales surged 5.4%, on top of a nearly 16% increase a year ago, almost entirely driven by higher prices. But volumes inflected, growing 0.3%, versus a 2% downdraft in the second quarter.

Since taking the helm at Mondelez more than six years ago, CEO Dirk Van de Put has orchestrated a plan to drive balanced sales and profit growth by extending the distribution of its fare, fueling investments behind its local and global brands, empowering its local leaders, and increasing the agility with which it brings innovation to market (aims that are hitting the mark). Against this backdrop, Mondelez targets 3%-5% sales growth long term as it works to sell its wares in more channels and reinvests in new products aligned with consumer trends at home and abroad. Further, it has prudently made acquisitions of niche brands to build out its category and geographic exposure, and we anticipate it will continue to pursue inorganic targets when the opportunity arises.

We don’t expect to make any material change to our $75 per share fair value estimate for wide-moat Mondelez after digesting solid second-quarter results. But after a low-single-digit share price drop after earnings, we think shares look attractive. Organic sales increased 2.5% in the quarter (on top of 16% growth last year), and there was expansion in both adjusted gross (330 basis points, to 40.5%) and operating (270 basis points, to 17.9%) margins. While volumes slumped 2.2%, we attribute this pullback to customer disruption in Europe around price negotiations—which have since been resolved—and lackluster biscuit performance in the US and India. To stymie the impact of the latter, the firm is promoting its fare and bringing smaller pack sizes to market to appeal to a value-seeking consumer, which we see as prudent in light of the competitive and macroeconomic landscape.