Mondelez International Inc Class A MDLZ

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.