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Mondelez International Inc Class A MDLZ

Rating as of

Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Even As Mondelez Boasts Improving Q1 Sales and Profits, It Continues To Actively Manage Its Mix

Erin Lash, CFA Sector Director

Analyst Note

| Erin Lash, CFA |

There was a lot to like in wide-moat Mondelez’s first-quarter results--3.8% organic sales growth and a 140-basis-point increase in adjusted operating margins to 17.9%. We view these marks as more impressive on top of robust growth a year ago, when the firm chalked up 6.4% underlying gains (averaging 5.1% over the two-year period), as consumers stocked up at the onset of COVID-19. In addition, Mondelez’s profit uptick came despite inflationary headwinds and a double-digit step up in working media to support its brands at the shelf. As such, we don’t posit the firm is riding the coattails of a favorable industry backdrop, but rather believe its solid brand mix and distribution scale is at play.

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Company Profile

Business Description

Mondelez has operated as an independent organization following its split from the former Kraft Foods North American grocery business in October 2012. The firm is a leading player in the global snack arena with a presence in the biscuit (48% of sales), chocolate (31%), gum/candy (10%), beverage (4%), and cheese and grocery (7%) aisles. Mondelez's portfolio includes well-known brands like Oreo, Chips Ahoy, Halls, Trident, and Cadbury, among others. The firm derives around one third of revenue from developing markets, nearly 40% from Europe, and the remainder from North America.

Contact
905 West Fulton Market, Suite 200
Chicago, IL, 60607
T +1 847 943-4000
Sector Consumer Defensive
Industry Confectioners
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 79,000

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