Mondelez International Inc. Overview
Mondelēz International is a scale-advantaged global snacking pure-play whose competitive position rests on three reinforcing assets: category leadership in chocolate and biscuits, an unusually broad emerging-market footprint, and a route-to-market network that few packaged-food peers can replicate. Roughly 76% of revenue is generated outside the United States and roughly 40% comes from emerging markets, giving the company demographic tailwinds that most developed-market staples companies lack. The portfolio is anchored by brands with multi-decade equity — Oreo, Cadbury Dairy Milk, Milka, LU, Ritz, Toblerone — which confer pricing power that was tested and largely validated through the 2024–25 cocoa shock. That shock, however, exposed the flip side of chocolate concentration: FY2025 adjusted operating margin compressed 300 basis points and GAAP earnings nearly halved. The investment case from here is a margin-recovery story layered on a structurally sound top line, with execution risk concentrated in developed-market volume recovery rather than in category or geographic positioning.
Mondelēz International, Inc. is the world's second-largest chocolate company and one of the two largest biscuit and baked-snack manufacturers globally, operating a portfolio of category-leading brands across more than 150 countries. The company was created in October 2012 through the spin-off of Kraft Foods Inc.'s North American grocery business, with the retained global snacking business renamed Mondelēz International. It remains legally continuous with the entity incorporated in Virginia in 2000 as Kraft Foods Inc.
What the company does
Mondelēz International manufactures, markets and sells snack food and beverage products globally. Its own characterisation in the FY2025 Form 10-K is direct: the company's purpose is to empower people to snack right; its core business is making and selling chocolate, biscuits and baked snacks; and it maintains additional businesses in adjacent, locally relevant categories including gum and candy, cheese and grocery, and powdered beverages. The 10-K describes global net revenues of $38.5 billion and net earnings of $2.5 billion for 2025, with products sold in over 150 countries.
Revenue model
| Revenue model component | Characterisation |
|---|---|
| Product sales (branded packaged food) | Effectively the entirety of net revenues |
| Service revenue | Not material |
| Subscription revenue | — |
| Licensing / royalty | Immaterial; not separately disclosed |
| Short-term distributor agreements | Transitional only; the developed-market gum distribution arrangement with Perfetti Van Melle ended in Q1 2024 |
The revenue model is almost entirely product-based wholesale manufacturing and distribution. There is no meaningful subscription, service or recurring-contract revenue. Licensing is a marginal contributor: the company both grants third parties licences to use its trademarks, patents and trade secrets, and in turn sells certain products under licensed third-party intellectual property. A reciprocal cross-licensing framework with Kraft Foods Group (now part of The Kraft Heinz Company) survives from the 2012 spin-off, granting each party rights to use specified intellectual property in named jurisdictions.
Economically, the model converts agricultural commodity inputs — cocoa, dairy, wheat, edible oils, sugar and other sweeteners, flavouring agents and nuts — plus packaging, energy and labour into branded finished goods sold at a substantial value-added spread. That spread is the central variable in the equity story: gross margin ran at 38–39% in 2021, 2023 and 2024, collapsed to 28.4% in 2025 under cocoa cost inflation and adverse derivative mark-to-market, and is the principal recovery lever into 2026–27.
Value chain position
Mondelēz occupies the branded manufacturer tier: downstream of agricultural producers, cocoa processors, ingredient houses and packaging converters; upstream of grocery retail, wholesale, club, convenience, digital and travel-retail channels. It does not own primary cocoa production. It does operate at significant scale in secondary processing and in manufacturing, with 145 principal manufacturing and processing facilities across 49 countries as at the FY2025 10-K. The company also maintains a proprietary distribution network encompassing direct store delivery, company-owned and satellite warehouses, distribution centres, third-party distributors and independent sales agents.
Customer types and end-markets
Customers are supermarket chains, wholesalers, supercentres, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets. The company additionally sells direct to businesses and consumers through pure-play e-retail platforms, retailer digital platforms, its own direct-to-consumer websites and social platforms. Critically for concentration risk assessment, no single customer accounted for 10% or more of net revenues in 2025 — a materially better position than several US-centric packaged-food peers.
End-markets served are consumer snacking occasions across five product categories: biscuits and baked snacks (cookies, crackers, salted snacks, snack bars, cakes and pastries), chocolate, gum and candy, beverages, and cheese and grocery. Demand is broadly balanced across the year with a fourth-quarter uplift driven by holidays and seasonal events; the timing of Easter shifts revenue between the first and second quarters.
Independent characterisation
Three features distinguish Mondelēz from the packaged-food peer group and should frame any valuation work.
First, it is a genuine emerging-market operator rather than an exporter. Emerging markets — the entirety of Latin America, AMEA excluding Australia, New Zealand and Japan, and a defined list of Central and Eastern European countries plus Russia, Ukraine and Türkiye — generated $15.4 billion of FY2025 revenue, 39.9% of the total, growing 8.5% reported and 7.2% organic. This is a structurally faster-growing revenue pool than the developed-market book, and it grew volume-led in the first half of 2026 while Europe declined.
Second, the portfolio is more commodity-levered than the peer average because chocolate is roughly a third of revenue and cocoa is the single largest input. The FY2025 result is the empirical proof: an 8.0 percentage-point pricing contribution offset a 3.7 point volume/mix decline to deliver 4.3% organic growth, yet adjusted operating income still fell 15.5% at constant currency. Pricing power exists; it was not sufficient to hold margin against a commodity move of that magnitude within a single cycle.
Third, the company carries an unusually negative cash conversion cycle — approximately negative 39 days at year-end 2025 — because accounts payable of $10.1 billion exceed inventories plus trade receivables. This is a real and durable funding advantage, though it also means working capital becomes a cash headwind whenever input costs deflate and payables unwind.
Strategy
Stated strategy
The FY2025 Form 10-K states the aim to be the global leader in snacking by focusing on growth, execution, culture and sustainability, with a refined strategy prioritising the fast-growing core categories of chocolate, biscuits and baked snacks. Four strategic priorities are named:
Accelerate consumer-centric growth. Increasing focus on chocolate, biscuits and baked snacks by investing in both global and local brands; delivering multi-category growth in key geographies; expanding presence in high-growth channels; and increasing presence in under-represented segments and price tiers, with a test-learn-scale approach to new product offerings.
Drive operational excellence. Continuous improvement focused on consumer-facing areas and on optimising sales, marketing and customer service; leveraging the global shared services platform; driving supply chain efficiencies informed by a consumer-centric approach; applying cost discipline; and boosting digital commerce alongside a digital transformation programme.
Build a winning growth culture. Becoming more agile, digital and local-consumer focused; granting local teams more autonomy over commercial and innovation plans while retaining the efficiency and scale of regional operating units.
Scale sustainable snacking. Sustainable sourcing of key ingredients, reducing end-to-end environmental impact, and enhancing processes and packaging to reduce waste and promote recycling, under the Snacking Made Right framework with Board-level oversight.
Medium-term financial targets
| Target | Level |
|---|---|
| Organic net revenue growth (percent, long-term algorithm) | 3 to 5 |
| Adjusted EPS growth, constant currency (long-term algorithm) | High single digit |
| Free cash flow (USD billions, long-term algorithm) | Over 3 |
| Core category share of net revenue (percent, over time) | Over 90, from approximately 80 currently |
| Reinvestment posture | Approximately half of gross profit improvement reinvested |
Reaffirmed at the 2026 CAGNY Conference on 17 February 2026 and again in the 2026 proxy statement:
Commentary from the CAGNY event also referenced a forward free cash flow ambition of approximately $4 billion or more; this appears in secondary coverage of the presentation rather than in the company's own release, which reaffirmed the "more than $3 billion" formulation, and the discrepancy is flagged.
FY2026 guidance evolution
| Guidance metric | Set 3 February 2026 | Revised 28 July 2026 |
|---|---|---|
| Organic net revenue growth (percent) | Flat to 2 | At least 2 |
| Adjusted EPS growth, constant currency (percent) | Flat to 5 | Flat to 5, maintained |
| Free cash flow (USD billions) | Approximately 3 | Approximately 3 |
| Currency effect on net revenue growth (percentage points) | Plus 2.0 | Plus 2.0 |
| Currency effect on adjusted EPS (USD per share) | Plus 0.06 | Plus 0.05 |
Management explicitly stated that any earnings upside from the raised revenue outlook would be reinvested into areas showing momentum rather than flowed through to EPS. Guidance is framed in the context of greater than usual volatility including geopolitical, trade and regulatory uncertainty and commodity prices, and does not reflect potential tariff changes to USMCA-compliant trade.
Announced strategic initiatives, last 24 months
| Date | Initiative | Detail and financial parameters |
|---|---|---|
| 2025 (Board approval) | ERP System Implementation programme | $1.2 billion budget approved by the Board; multi-year global ERP and supply chain systems upgrade; implemented by region in several phases; expected completion by year-end 2028. Operating costs of $78 million in FY2024, $163 million in FY2025 and $108 million in H1 2026 |
| Q4 2025 | New restructuring programme | Actions to reduce cost structure and streamline operations; charges primarily severance and implementation costs. Total programme size, savings target and duration not publicly disclosed. Restructuring charges of $56 million recognised in H1 2026 |
| 1 February 2026 | Chief Operating Officer role created | First COO in the company's history; Zaramella given responsibility for four geographic regions plus corporate sales, marketing and supply chain |
| 17 February 2026 | CAGNY strategic reset | Five corrective actions in European chocolate: price-point focus, broader and premium offerings, channel expansion, and supply-chain resilience. US biscuit programme: price-pack reconfiguration, value packs, premium and health launches, multi-year supply chain upgrade |
| 17 February 2026 | Emerging markets growth engine | Volume-led local-first operating model with named priority markets China, India, Brazil and Mexico |
| 17 February 2026 | Capital allocation framing | Brand reinvestment plus growth-accretive bolt-on M&A, while maintaining balance sheet flexibility |
| 1 July 2026 | Toblerone premiumisation | Swarovski-crafted Crystal Bar and global charity auction across nine international airports; limited-edition Ultimate Gift Box in World Travel Retail; explicitly framed as reinforcing premium chocolate strategy |
| 22 January and 16 June 2026 | CoLab Tech 2026 accelerator | Applications opened January; nine start-ups selected from over 200 applicants announced June. Focus: climate resilience, breakthrough performance technologies, next-generation ingredients, more sustainable packaging |
| 15 April 2026 | 2025 sustainability milestones | Approximately 100% cocoa volume sourced through Cocoa Life; approximately 60% progress against the 2030 GHG emissions reduction target; approximately 75% progress toward the 2030 recycled plastic content target |
| 11 June 2026 | Human rights due diligence scale-up | Approximately 100% Child Labor Monitoring and Remediation Systems coverage of Cocoa Life communities in West Africa; approximately 100% SMETA audit coverage of owned manufacturing plants over three years; over 1,200 suppliers audited |
Products & Services
The portfolio spans five product categories. Management's stated ambition, reiterated at CAGNY in February 2026, is to raise the share of net revenue from the three core categories — chocolate, biscuits and baked snacks — from approximately 80% currently to over 90% over time.
Category revenue mix
| Category (USD Mn) | FY2025 |
|---|---|
| Biscuits and Baked Snacks | 18,390 |
| Chocolate | 12,700 |
| Gum and Candy | 4,060 |
| Cheese and Grocery | 2,380 |
| Beverages | 1,010 |
| Category share of net revenue (percent) | FY2023 | FY2025 |
|---|---|---|
| Biscuits and Baked Snacks | 49.0 | 47.7 |
| Chocolate | 30.0 | 33.0 |
| Gum and Candy | 12.0 | 10.5 |
| Cheese and Grocery | 6.0 | 6.2 |
| Beverages | 3.0 | 2.6 |
FY2025 category figures are rounded to the nearest $10 million and are drawn from a financial data aggregator's parse of the segment disclosure rather than directly from the primary filing text; they reconcile to the audited $38,537 million total. FY2023 shares are from the 2024 proxy statement's at-a-glance disclosure.
Biscuits and Baked Snacks
| Brand | Description and positioning | Primary geography | Target customer | Notes |
|---|---|---|---|---|
| Oreo | Sandwich cookie; the company's flagship global brand and largest single revenue contributor | Global | Mass-market family and adult indulgence | Launched 1912; continuously extended via limited editions, Oreo Cakester line extensions, and co-branded chocolate crossovers |
| Ritz | Buttery round cracker; leading US filled-cracker and saltine positions | North America, expanding internationally | Everyday snacking and entertaining | Subject of a limited voluntary recall of one Ritz Peanut Butter Cracker Sandwiches SKU announced 28 November 2025 across eight US states |
| LU | Heritage European biscuit brand acquired with the 2007 Danone biscuits transaction | Europe, principally France | Mainstream European biscuit consumer | Core of the European biscuit franchise |
| Prince | Filled biscuit brand, also from the Danone biscuits acquisition | Europe | Children and family occasions | — |
| belVita | Breakfast biscuit platform | Global | Morning occasion, nutrition-oriented | The company's principal breakfast-occasion asset |
| Chips Ahoy | Chocolate-chip cookie | North America, Latin America | Mainstream cookie | — |
| Wheat Thins | Baked wheat cracker positioned around wholegrain | North America | Better-for-you cracker | Named specifically in the San Francisco ultra-processed foods complaint as marketed as healthy |
| Triscuit | Wholegrain shredded-wheat cracker | North America | Better-for-you cracker | — |
| Honey Maid | Graham cracker | North America | Family and children | — |
| Club Social | Cracker brand | Latin America | Mainstream | — |
| TUC | Savoury cracker | Europe | Savoury snacking | — |
| Barni | Soft filled cake bar for children | Europe, emerging markets | Children | — |
| Tiger | Local biscuit brand | Emerging markets | Value tier | — |
| Kinh Do | Vietnamese biscuits and mooncakes | Vietnam and Southeast Asia | Local and seasonal | — |
| Tate's Bake Shop | Premium thin-and-crispy cookies | United States | Premium cookie | Acquired 2018; named in Q2 2026 commentary as a premium-cookie growth driver |
| Enjoy Life Foods | Free-from and allergy-friendly snacks | North America | Allergen-avoidant households | — |
| Give & Go | In-store bakery and sweet baked goods (Two-Bite brand) | North America | Retail bakery channel | Acquired 2020 |
| Gourmet Food Holdings | Premium biscuits and crackers (OB Finest, Olina's) | Australia | Premium | Acquired 2021 |
| 7Days | Croissants and baked snacks, from Chipita | Central and Eastern Europe, Middle East | Convenience and impulse | Acquired January 2022 |
| Evirth | Cakes and pastries | China | Local cakes and pastries | Majority stake acquired 1 November 2024; added $316 million of incremental constant-currency revenue through the one-year anniversary |
| CLIF | Organic energy bars | United States, expanding | Active nutrition | Acquired August 2022 for approximately $2.9 billion |
| Perfect Snacks | Refrigerated protein bars | United States | Refrigerated better-for-you | — |
| Grenade | Performance nutrition bars and protein products | United Kingdom | Sports and performance nutrition | Acquired 2021 |
Chocolate
| Brand | Description and positioning | Primary geography | Notes |
|---|---|---|---|
| Cadbury Dairy Milk | Mainstream milk chocolate; the anchor of the chocolate portfolio | United Kingdom, India, Australia, Africa | Acquired with Cadbury plc in 2010 |
| Milka | Alpine milk chocolate | Germany, France, Central Europe | Co-branded with Lotus Biscoff under the Lotus Bakeries collaboration |
| Toblerone | Triangular Swiss chocolate bar; premium and travel-retail led | Global, heavily indexed to travel retail | Subject of a Swarovski-crafted Crystal Bar charity auction across nine international airports announced 1 July 2026, explicitly framed as deepening premium positioning |
| Côte d'Or | Premium Belgian chocolate | Belgium, France | — |
| Lacta | Leading Brazilian chocolate brand | Brazil | Croissant line extension launched under the brand |
| 5 Star | Caramel-nougat countline | India | — |
| Alpen Gold | Mainstream chocolate | Russia, Eastern Europe | — |
| Marabou | Leading Swedish chocolate | Nordics | Subject of a 2026 packaging collaboration with LyondellBasell |
| Freia | Leading Norwegian chocolate | Norway | — |
| Daim | Crunchy caramel chocolate | Nordics, Europe | — |
| Hu | Paleo and simple-ingredient premium chocolate | United States | Acquired 2021 |
| Green & Black's | Organic premium chocolate | United Kingdom | From the Cadbury portfolio |
| Ricolino | Mexican confectionery and chocolate portfolio | Mexico, Central America | Acquired 1 November 2022 from Grupo Bimbo |
Gum and Candy
| Brand | Description | Primary geography | Notes |
|---|---|---|---|
| Trident | Sugar-free gum | Emerging markets, North America | Developed-market gum in Europe was divested to Perfetti Van Melle in October 2023 |
| Stride | Long-lasting gum | North America | — |
| Clorets | Breath-freshening gum and mints | Emerging markets, Japan | — |
| Halls | Medicated and refreshment drops | Global | Divestiture intent announced 2022 but the business was retained; the gum sale proceeded separately |
| Sour Patch Kids | Sour then sweet gummy candy | North America | One of the faster-growing candy assets |
| Maynards Bassetts | Traditional UK sweets including Liquorice Allsorts and Wine Gums | United Kingdom | — |
Beverages and Cheese & Grocery
| Brand | Category | Description | Primary geography |
|---|---|---|---|
| Tang | Beverages | Powdered fruit-flavoured drink concentrate | Latin America, AMEA, Middle East |
| Bournvita | Beverages | Malted health drink; a zero-sugar variant launched in 2025 | India |
| Philadelphia | Cheese & Grocery | Cream cheese | Europe, international |
| Royal | Cheese & Grocery | Desserts and grocery | Latin America, Iberia |
Pricing model and innovation cadence
Pricing is negotiated wholesale list pricing with trade promotion allowances, varying by market, channel and pack architecture; the company does not disclose price points. Marketing spend is organised into consumer marketing and advertising, consumer sales incentives such as coupons and rebates, and trade promotions supporting price features, displays and merchandising.
Recent named innovations disclosed in the FY2025 10-K and 2026 releases include co-branded chocolate innovations combining Lotus Biscoff with Cadbury Dairy Milk, Milka and other key brands in Europe; zero-sugar Bournvita in India; Oreo Cakester line extensions; and Milka and Lacta croissants in Europe and Brazil respectively. Management also disclosed a US biscuit response programme built on price-pack reconfiguration, value packs, premium and health-oriented launches, and a multi-year supply chain upgrade.
Financial Narrative
Income statement
FY2021 and FY2022 gross profit and cost of sales are derived from audited net revenues and the audited gross-margin percentages disclosed in the respective Forms 10-K; the derivation reconciles exactly to reported gross profit for FY2023, FY2024 and FY2025 and is therefore presented as reliable, though it is a derivation rather than a directly quoted line.
Revenue growth and CAGR
Four-year reported revenue CAGR FY2021 to FY2025: 7.62%. The gap between reported and organic growth over the period is accounted for principally by the Chipita, Clif Bar, Ricolino and Evirth acquisitions on the positive side and the developed-market gum divestiture plus currency translation on the negative side.
Trend commentary and inflection analysis
Revenue. The top line has compounded at 7.6% over four years, but the composition of that growth changed decisively in 2025. In FY2023 organic growth of 14.7% was volume-supported; by FY2025 organic growth of 4.3% was entirely pricing-driven, with 8.0 points of price offsetting a 3.7 point volume/mix decline. The $2,096 million reported increase in FY2025 decomposes into $1,571 million of organic growth, $316 million of Evirth acquisition contribution and $241 million of favourable currency-related items, partly offset by lapping prior-year revenue from the short-term gum distributor agreement.
Gross profit — the central inflection. Gross profit fell $3,322 million in FY2025, a 23.3% decline, and gross margin dropped 1,070 basis points to 28.4%. Roughly half of that is presentational: an adverse year-on-year swing in commodity and foreign-currency derivative mark-to-market of $1,345 million at the gross-profit line. The underlying deterioration is captured by adjusted gross profit, which fell $1,565 million at constant currency with adjusted gross margin down 580 basis points to 32.0%, driven by higher raw material costs and unfavourable product mix, partially offset by pricing and productivity-driven manufacturing savings. This is the single most important number in the five-year series: it isolates the true economic damage from cocoa at roughly $1.6 billion of gross profit.
Operating income. The $2,797 million decline to $3,548 million reflects the derivative swing, the adjusted margin compression, an adverse year-on-year change in acquisition-related items (FY2024 benefited from a $350 million reduction in the Clif Bar contingent consideration liability) and higher ERP System Implementation costs of $163 million against $78 million. Partially offsetting were lower restructuring charges following completion of Simplify to Grow and lower intangible impairment charges of $33 million against $153 million.
Below the line. FY2025 carried two unusual items. Benefit plan non-service income swung from $96 million of income to $252 million of expense, driven by settlement losses on pension plan buy-outs — a $0.20 per share drag. Against that, the company recorded a $169 million gain on equity method investment transactions from the JAB payment triggered by the Keurig Dr Pepper acquisition of JDE Peet's.
Cash generation held. Operating cash flow of $4,514 million and free cash flow of $3,235 million in FY2025 are only modestly below FY2024 despite earnings halving, because the derivative losses were non-cash. Capital expenditure of $1,279 million represents 3.3% of revenue, down from 3.8% in FY2024. This resilience is the strongest argument in the bull case.
Balance sheet stress is visible but manageable. Total debt rose $3,456 million to $21,205 million in FY2025 — almost entirely via a $2,617 million increase in short-term borrowings — while cash rose $774 million, leaving net debt up $2,682 million to $19,080 million. Net debt to reported EBITDA at 3.89 times is elevated; on the adjusted EBITDA basis management uses, 2.97 times is at the upper end of an investment-grade comfort zone. The reliance on short-term borrowings and commercial paper is a genuine, if currently well-managed, refinancing sensitivity. In H1 2026 the mix shifted: commercial paper issuance of $1,584 million with $587 million of repayments, and a $1,313 million net repayment of other short-term borrowings.
Buyback discipline shifted sharply. Share repurchases were $2,385 million in FY2025 but only $212 million in H1 2026 against $1,653 million in H1 2025 — a decisive change in capital allocation posture that preserved balance-sheet flexibility while the dividend was maintained and then raised.
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Segment Revenue
| Segment | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Latin America | 2,797 | 3,629 | 5,006 | 4,926 | 4,899 |
AMEA | 6,465 | 6,767 | 7,075 | 7,296 | 7,932 |
Europe | 11,156 | 11,420 | 12,857 | 13,309 | 15,027 |
North America | 8,302 | 9,680 | 11,078 | 10,910 | 10,679 |
Total net revenues | 28,720 | 31,496 | 36,016 | 36,441 | 38,537 |
Segment Revenue — Latin America
| Segment | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Latin America | 261 | 388 | 529 | 532 | 569 |
AMEA | 1,054 | 929 | 1,113 | 1,192 | 985 |
Europe | 2,092 | 1,481 | 1,978 | 2,068 | 1,820 |
North America | 1,371 | 1,769 | 2,092 | 2,492 | 1,904 |
Total segment operating income | 4,778 | 4,567 | 5,712 | 6,284 | 5,278 |
Segment Margins & Growth (%)
| Segment | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Latin America | 9.33 | 10.69 | 10.57 | 10.80 | 11.61 |
AMEA | 16.30 | 13.73 | 15.73 | 16.34 | 12.42 |
Europe | 18.75 | 12.97 | 15.38 | 15.54 | 12.11 |
North America | 16.51 | 18.27 | 18.88 | 22.84 | 17.83 |
Total segment margin | 16.64 | 14.50 | 15.86 | 17.25 | 13.70 |
Segment Revenue (2)
| Segment | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Latin America | 9.74 | 11.52 | 13.90 | 13.52 | 12.71 |
AMEA | 22.51 | 21.48 | 19.64 | 20.02 | 20.58 |
Europe | 38.84 | 36.26 | 35.70 | 36.52 | 38.99 |
North America | 28.91 | 30.73 | 30.76 | 29.94 | 27.71 |
Segment Revenue (FY2022–FY2025)
| Segment | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Latin America | 29.75 | 37.94 | -1.60 | -0.55 |
AMEA | 4.67 | 4.55 | 3.12 | 8.72 |
Europe | 2.37 | 12.58 | 3.52 | 12.91 |
North America | 16.60 | 14.44 | -1.52 | -2.12 |
Total | 9.67 | 14.35 | 1.18 | 5.75 |
Segment Revenue by Reconciling Item
| Reconciling item | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Total segment operating income | 4,567 | 5,712 | 6,284 | 5,278 |
Unrealised gains/(losses) on hedging activities | -326 | 189 | 543 | — |
General corporate expenses | -245 | -356 | -330 | — |
Amortisation of intangible assets | -132 | -151 | -153 | -142 |
Net gain on divestitures and acquisitions | 0 | 108 | 4 | 13 |
Acquisition-related costs | -330 | 0 | -3 | — |
Consolidated operating income | 3,534 | 5,502 | 6,345 | 3,548 |
Segment Revenue (H1 2025–Q2 2026)
| Metric | Q2 2025 | Q2 2026 | H1 2025 | H1 2026 |
|---|---|---|---|---|
Latin America net revenues | 1,194 | 1,374 | 2,397 | 2,722 |
AMEA net revenues | 1,821 | 1,971 | 3,837 | 4,275 |
Europe net revenues | 3,412 | 3,377 | 6,962 | 7,248 |
North America net revenues | 2,557 | 2,633 | 5,101 | 5,190 |
Total net revenues | 8,984 | 9,355 | 18,297 | 19,435 |
Segment operating income (GAAP)
| Segment operating income (GAAP) | Q2 2026 | H1 2026 |
|---|---|---|
Latin America | 166 | 315 |
AMEA | 254 | 580 |
Europe | 382 | 676 |
North America | 431 | 815 |
Balance Sheet and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Net revenues (USD Mn) | 28,720 | 31,496 | 36,016 | 36,441 | 38,537 |
Cost of sales (USD Mn) | 17,465 | 20,183 | 22,252 | 22,184 | 27,602 |
Gross profit (USD Mn) | 11,255 | 11,313 | 13,764 | 14,257 | 10,935 |
Selling, general and administrative expenses (USD Mn) | — | — | 8,002 | 7,439 | 7,173 |
Asset impairments and exit costs (USD Mn) | — | — | 217 | 324 | 85 |
Gain on divestitures and acquisition (USD Mn) | — | — | 108 | 4 | 13 |
Amortisation of intangible assets (USD Mn) | 134 | 132 | 151 | 153 | 142 |
Operating income (USD Mn) | 4,653 | 3,534 | 5,502 | 6,345 | 3,548 |
Benefit plan non-service income/(expense) (USD Mn) | 163 | 117 | 82 | 96 | -252 |
Interest and other expense, net (USD Mn) | -447 | -423 | -310 | -180 | -282 |
Gain on marketable securities (USD Mn) | 0 | 0 | 606 | 0 | 0 |
Earnings before income taxes (USD Mn) | 4,369 | 3,228 | 5,880 | 6,261 | 3,014 |
Income tax provision (USD Mn) | — | — | 1,537 | 1,469 | 782 |
Gain/(loss) on equity method investment transactions (USD Mn) | — | — | 465 | -337 | 169 |
Equity method investment net earnings (USD Mn) | — | — | 160 | 168 | 65 |
Net earnings (USD Mn) | 4,314 | 2,726 | 4,968 | 4,623 | 2,466 |
Net earnings attributable to Mondelez (USD Mn) | 4,300 | 2,717 | 4,959 | 4,611 | 2,451 |
Basic EPS (USD) | 3.06 | 1.97 | 3.64 | 3.44 | 1.89 |
Diluted EPS (USD) | 3.04 | 1.96 | 3.62 | 3.42 | 1.89 |
Adjusted EPS (USD, non-GAAP) | — | — | — | 3.35 | 2.92 |
Weighted-average basic shares (millions) | 1,403 | 1,378 | 1,363 | 1,341 | 1,294 |
Weighted-average diluted shares (millions) | 1,413 | 1,385 | 1,370 | 1,347 | 1,298 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin | 39.19 | 35.92 | 38.22 | 39.12 | 28.38 |
Operating margin | 16.20 | 11.22 | 15.28 | 17.41 | 9.21 |
Pre-tax margin | 15.21 | 10.25 | 16.33 | 17.18 | 7.82 |
Net margin (attributable) | 14.97 | 8.63 | 13.77 | 12.65 | 6.36 |
Adjusted gross margin (non-GAAP) | — | — | — | 37.80 | 32.00 |
Adjusted operating margin (non-GAAP) | — | — | — | 16.20 | 13.20 |
Effective tax rate | — | — | 26.14 | 23.46 | 25.95 |
Margin Analysis (%) (FY2022–FY2025)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Reported net revenue growth (percent) | 9.67 | 14.35 | 1.18 | 5.75 |
Organic net revenue growth (percent) | 12.30 | 14.70 | 4.30 | 4.30 |
Volume/mix contribution (percentage points) | — | — | -1.00 | -3.70 |
Pricing contribution (percentage points) | — | — | 5.30 | 8.00 |
Financial Analysis
| Metric | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|
Cash and cash equivalents | 1,351 | 2,125 | 1,716 |
Trade receivables | 3,874 | 3,903 | 4,010 |
Other receivables | 937 | 955 | 998 |
Inventories | 3,827 | 4,419 | 4,405 |
Other current assets | 3,253 | 1,549 | 1,809 |
Total current assets | 13,242 | 12,951 | 12,938 |
Property, plant and equipment, net | 9,481 | 10,667 | 10,649 |
Operating lease right-of-use assets | 767 | 731 | 732 |
Goodwill | 23,017 | 24,336 | 24,180 |
Intangible assets, net | 18,848 | 19,628 | 19,509 |
Prepaid pension assets | 987 | 1,220 | 1,251 |
Deferred income taxes (asset) | 333 | 336 | 184 |
Equity method investments | 635 | 667 | 619 |
Other assets | 1,187 | 951 | 1,185 |
Total assets | 68,497 | 71,487 | 71,247 |
Short-term borrowings | 71 | 2,688 | 2,327 |
Current portion of long-term debt | 2,014 | 1,295 | 2,663 |
Accounts payable | 9,433 | 10,139 | 9,411 |
Accrued marketing | 2,558 | 2,787 | 2,612 |
Accrued employment costs | 928 | 1,000 | 875 |
Other current liabilities | 4,545 | 3,955 | 3,705 |
Total current liabilities | 19,549 | 21,864 | 21,593 |
Long-term debt | 15,664 | 17,222 | 16,460 |
Long-term operating lease liabilities | 623 | 599 | 609 |
Deferred income taxes (liability) | 3,425 | 3,530 | 3,539 |
Accrued pension costs | 391 | 422 | 370 |
Accrued postretirement health care costs | 98 | 74 | 72 |
Other liabilities | 1,789 | 1,885 | 1,912 |
Total liabilities | 41,539 | 45,596 | 44,555 |
Additional paid-in capital | 32,276 | 32,322 | 32,333 |
Retained earnings | 36,476 | 36,413 | 37,233 |
Accumulated other comprehensive losses | -12,471 | -11,364 | -11,283 |
Treasury stock | -29,349 | -31,533 | -31,644 |
Total Mondelez shareholders' equity | 26,932 | 25,838 | 26,639 |
Noncontrolling interest | 26 | 53 | 53 |
Total equity | 26,958 | 25,891 | 26,692 |
Total debt | 17,749 | 21,205 | 21,450 |
Net debt | 16,398 | 19,080 | 19,734 |
Goodwill plus intangibles | 41,865 | 43,964 | 43,689 |
Working capital | -6,307 | -8,913 | -8,655 |
Financial Analysis — Net earnings
| Metric | FY2024 | FY2025 | H1 2025 | H1 2026 |
|---|---|---|---|---|
Net earnings | 4,623 | 2,466 | 1,051 | 2,116 |
Depreciation and amortisation | 1,302 | 1,358 | 663 | 693 |
Stock-based compensation | 147 | 114 | 65 | 87 |
Unrealised (gain)/loss on derivative contracts | -627 | 1,379 | 800 | -509 |
Net cash provided by operating activities | 4,910 | 4,514 | 1,400 | 1,322 |
Capital expenditures | -1,387 | -1,279 | -582 | -654 |
Free cash flow | 3,523 | 3,235 | 818 | 668 |
Acquisitions, net of cash received | -240 | -15 | -15 | 0 |
Proceeds from divestitures including equity method investments | 2,294 | 127 | 4 | 1 |
Net cash provided by/(used in) investing activities | 526 | -1,196 | -591 | -716 |
Long-term debt proceeds | 1,671 | 1,594 | 1,594 | 1,074 |
Long-term debt repayments | -2,554 | -2,077 | -1,242 | -304 |
Repurchases of common stock | -2,334 | -2,385 | -1,653 | -212 |
Dividends paid | -2,349 | -2,487 | -1,233 | -1,287 |
Net cash used in financing activities | -5,780 | -2,759 | -862 | -1,039 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2024 | FY2025 |
|---|---|---|
Return on equity (percent, ending equity) | 17.12 | 9.49 |
Return on assets (percent, ending assets) | 6.73 | 3.43 |
Return on invested capital (percent, NOPAT basis) | 11.20 | 5.85 |
Current ratio (times) | 0.68 | 0.59 |
Total debt to equity (times) | 0.66 | 0.82 |
Net debt to reported EBITDA (times) | 2.14 | 3.89 |
Net debt to adjusted EBITDA (times) | 2.28 | 2.97 |
Operating income to interest and other expense, net (times) | 35.25 | 12.58 |
Total asset turnover (times) | 0.53 | 0.54 |
Days sales outstanding (days) | 38.8 | 37.0 |
Days inventory outstanding (days) | 63.0 | 58.4 |
Days payable outstanding (days) | 155.2 | 134.1 |
Cash conversion cycle (days) | -53.4 | -38.7 |
Reported EBITDA (USD Mn) | 7,647 | 4,906 |
Adjusted EBITDA (USD Mn) | 7,198 | 6,432 |
Dividend payout ratio on GAAP EPS (percent) | 52.3 | 102.6 |
Dividend payout ratio on adjusted EPS (percent) | 53.4 | 66.4 |
Revenue by Region
| Region | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Latin America (USD Mn) | 5,006 | 4,926 | 4,899 |
AMEA (USD Mn) | 7,075 | 7,296 | 7,932 |
Europe (USD Mn) | 12,857 | 13,309 | 15,027 |
North America (USD Mn) | 11,078 | 10,910 | 10,679 |
Total (USD Mn) | 36,016 | 36,441 | 38,537 |
Region reported growth (percent)
| Region reported growth (percent) | FY2024 | FY2025 |
|---|---|---|
Latin America | -1.60 | -0.55 |
AMEA | 3.12 | 8.72 |
Europe | 3.52 | 12.91 |
North America | -1.52 | -2.12 |
Total | 1.18 | 5.75 |
Region organic growth (percent)
| Region organic growth (percent) | FY2025 |
|---|---|
Latin America | 4.60 |
AMEA | 5.70 |
Europe | 8.60 |
North America | -1.90 |
Total | 4.30 |
Components
| Component | Latin America | AMEA | Europe | North America | Total |
|---|---|---|---|---|---|
Volume/mix | -3.2 | -2.1 | -5.3 | -2.7 | -3.7 |
Pricing | 7.8 | 7.8 | 13.9 | 0.8 | 8.0 |
Organic growth | 4.6 | 5.7 | 8.6 | -1.9 | 4.3 |
Acquisitions | 0.0 | -4.3 | 0.0 | 0.0 | -0.9 |
Currency-related items | 5.1 | 1.3 | -4.5 | 0.2 | -0.7 |
Reported growth | -0.5 | 8.7 | 12.9 | -2.1 | 5.8 |
Revenue by Region and Region Margins & Growth (%)
| Metric | FY2024 | FY2025 |
|---|---|---|
Emerging markets net revenues (USD Mn) | 14,163 | 15,364 |
Developed markets net revenues (USD Mn) | 22,278 | 23,173 |
Emerging markets reported growth (percent) | — | 8.50 |
Developed markets reported growth (percent) | — | 4.00 |
Emerging markets organic growth (percent) | — | 7.20 |
Developed markets organic growth (percent) | — | 2.50 |
Emerging markets share of total (percent) | 38.86 | 39.87 |
Country / Measure Details
| Country / measure | FY2025 |
|---|---|
Net revenues generated outside the United States (percent) | 75.8 |
Russia share of consolidated net revenues (percent) | 3.7 |
Ukraine share of consolidated net revenues (percent) | 0.4 |
Valuation Snapshot
| Metric | Value |
|---|---|
Share price (13 August 2026) | 63.61 |
Share price (10 August 2026 close) | 61.53 |
Share price (17 February 2026, post-CAGNY) | 59.46 |
Share price (27 March 2026) | 58.27 |
52-week range | 51.20 to 66.65 |
All-time closing high | 71.47, recorded 11 May 2023 |
Beta (5-year monthly) | 0.40 |
Average daily volume | Approximately 9.0 to 9.4 million shares |
One-year target estimate (USD) | 69.13 |
Implied upside from 63.61 (percent) | 8.7 |
Zacks Rank | 3 (Hold) |
Q2 2026 adjusted EPS consensus (USD) | 0.6938 to 0.69 |
Q2 2026 adjusted EPS actual (USD) | 0.73 |
Q2 2026 surprise (percent) | 5.2 to 7.35 |
Q2 2026 revenue consensus (USD Bn) | 9.381 |
Q2 2026 revenue actual (USD Bn) | 9.355 |
Return period
| Return period | Direction |
|---|---|
1-month market capitalisation change to 12 August 2026 (percent) | 3.42 |
12-month market capitalisation change to 12 August 2026 (percent) | 14.25 |
3-year share price change (annualised, percent) | -3.0 approximately |
Valuation Snapshot by Multiple
| Multiple | Value |
|---|---|
Trailing P/E on GAAP TTM EPS of 1.63 (times) | 37.6 to 39.0 |
Forward P/E (times) | 20.5 |
PEG ratio, five-year expected (times) | 1.02 |
Price to sales, computed on TTM revenue of 39.67 (times) | 2.05 |
Price to book, most recent quarter (times) | 2.95 |
Enterprise value (USD Bn) | 98.87 |
Enterprise value to revenue (times) | 2.49 |
Enterprise value to EBITDA, TTM (times) | 15.75 |
Peer Comparison
| Company | Market capitalisation (USD Bn) | P/E (as displayed) |
|---|---|---|
Mondelez International | 81.2 | 39.0 trailing, 20.5 forward |
Danone | 53.6 | — |
The Hershey Company | 37.0 | — |
Kraft Heinz | 32.1 | 9.07 |
General Mills | 27.1 | 11.88 |
McCormick | 19.0 | 24.23 |
J.M. Smucker | 11.1 | 10.31 |
Dividends & Capital Returns and Per-Share Data
| Metric | FY2024 | FY2025 | FY2026E |
|---|---|---|---|
Dividends paid (USD Mn) | 2,349 | 2,487 | — |
Dividends paid per share, approximate (USD) | 1.75 | 1.92 | — |
Quarterly dividend at year start (USD) | 0.425 | 0.47 | 0.50 |
Quarterly dividend at year end (USD) | 0.47 | 0.50 | 0.52 |
Annualised run-rate at 16 August 2026 (USD) | — | — | 2.08 |
Indicated yield at 63.61 (percent) | — | — | 3.27 |
Consecutive years of dividend growth | — | 14 | 15 |
Payout ratio on GAAP EPS (percent) | 52.3 | 102.6 | — |
Payout ratio on adjusted EPS (percent) | 53.4 | 66.4 | — |
Five-year dividend growth rate (percent per annum) | — | 9.68 | — |
Ten-year dividend growth rate (percent per annum) | — | Approximately 13 | — |
Dividends & Capital Returns
| Metric | FY2024 | FY2025 | H1 2026 |
|---|---|---|---|
Repurchases of common stock (USD Mn) | 2,334 | 2,385 | 212 |
Total capital returned (USD Bn) | 4.7 | 4.9 | 1.5 |
Treasury stock balance (USD Mn) | -29,349 | -31,533 | -31,644 |
Credit Ratings
| Agency | Rating | Outlook |
|---|---|---|
Moody's — senior unsecured | Baa1 | Stable as at the most recent verified action |
Moody's — commercial paper | Prime-2 | — |
Debt profile
| Debt profile | FY2025 | H1 2026 |
|---|---|---|
Short-term borrowings (USD Mn) | 2,688 | 2,327 |
Current portion of long-term debt (USD Mn) | 1,295 | 2,663 |
Long-term debt (USD Mn) | 17,222 | 16,460 |
Total debt (USD Mn) | 21,205 | 21,450 |
Cash and equivalents (USD Mn) | 2,125 | 1,716 |
Net debt (USD Mn) | 19,080 | 19,734 |
Analyst Conclusions
Management guidance
For FY2026, management expects organic net revenue growth of at least 2%, raised on 28 July 2026 from an initial flat-to-2% range; adjusted EPS growth of flat to 5% on a constant currency basis, unchanged; and free cash flow of approximately $3 billion. Currency translation is estimated to add approximately 2.0 percentage points to net revenue growth and $0.05 to adjusted EPS, based on rates published 17 July 2026. Guidance is explicitly framed in the context of greater than usual volatility including geopolitical, trade and regulatory uncertainty and commodity prices, and does not reflect potential tariff changes to USMCA-compliant trade.
The critical qualitative guidance is management's decision to reinvest any upside from the raised revenue outlook rather than allow it to flow to EPS. That signals confidence in the durability of the volume inflection and a willingness to trade near-term earnings for share recovery — appropriate given the North America and Europe share position, but it also means FY2026 will not be the earnings recovery year.
Management has been explicit that 2027 is the recovery year: CFO commentary at CAGNY identified strong EPS growth driven by improving performance in developed markets, continued strong growth in emerging markets, productivity across supply chain and SG&A, and continued stabilisation of cocoa, and characterised 2027 earnings as "insulated from commodity volatility."
Consensus expectations
| Metric | Consensus expectation |
|---|---|
| One-year price target (USD) | 69.13 |
| Forward P/E (times) | 20.5 |
| Revenue growth, next three years (percent per annum) | 3.1 |
| EPS growth, next three years (percent) | Approximately 42 cumulative |
| Implied FY2026 EPS rebound from FY2025 (percent) | Approximately 61, still approximately 11 below FY2024's $3.42 |
Bull case
One — the cocoa unwind is a mechanically large earnings lever, and its arithmetic is already visible. FY2025 adjusted gross profit fell $1,565 million at constant currency, almost entirely on cocoa. European benchmark cocoa fell from $8.52 per kilogram in Q1 2025 to $3.95 in Q1 2026, a decline exceeding 53%, with spot trading below $4,000 per tonne in early 2026. Because manufacturers hedge 12 to 24 months forward, the recovery is delayed but arithmetically inevitable so long as prices hold: the FY2027 cost base will be struck against materially lower forward curves. Recovering even two-thirds of the $1,565 million would add roughly $0.80 per share pre-tax against an FY2025 adjusted EPS of $2.92.
Two — the volume inflection has arrived earlier than management guided. Q2 2026 delivered volume/mix of plus 0.7 points, the first positive print since the shock, with AMEA at plus 5.2 points in the quarter and plus 5.5 for the half, and North America at plus 1.2. Management raised revenue guidance and characterised Europe share dynamics as showing early positive trends. If volume growth is genuinely restored while pricing normalises downward, the FY2027 revenue algorithm looks achievable without price dependence — a materially higher-quality earnings mix than FY2025.
Three — cash generation and the emerging-market engine were never impaired. FY2025 operating cash flow of $4,514 million and free cash flow of $3,235 million were delivered while earnings halved, because the earnings damage was substantially non-cash. Emerging markets, 39.9% of revenue, grew 7.2% organically in FY2025 and 5.3% in H1 2026 with positive volume. The structurally negative cash conversion cycle of approximately 39 days funds the business at negative working-capital cost. A company generating over $3 billion of free cash flow against an $81 billion market capitalisation, with a 3.3% dividend yield and a durable emerging-market growth engine, is not obviously expensive on normalised earnings.
Bear case
One — chocolate concentration is increasing, not decreasing, and the FY2025 outcome is the template for the next shock. Chocolate is approximately 33% of revenue and the stated strategy raises core categories from approximately 80% to over 90%. FY2025 demonstrated that a commodity move of this magnitude compresses adjusted operating margin by 300 basis points despite 8.0 points of pricing. Cocoa supply is not settled: early surveys of the 2026/27 West African crop indicate below-average cherelle formation, and one forecaster cut its 2026/27 surplus estimate to 149,000 tonnes from 267,000. The bull case's central assumption — sustained low cocoa — is not a base case, it is one scenario.
Two — the developed-market demand problem is separable from cocoa and has not been solved. North America declined 1.5% in FY2024 and 2.1% in FY2025, with volume/mix down 2.7 points in FY2025 and segment margin down 501 basis points to 17.83%. This is soft US biscuits and baked-snacks consumption, not a cocoa pass-through issue, and the remedies management announced at CAGNY 2026 — price-pack reconfiguration, value packs, premium launches, a multi-year supply chain upgrade — are multi-year programmes with uncertain payback. Meanwhile Mars, having completed the approximately $36 billion Kellanova acquisition in December 2025, is now a scaled direct competitor in exactly this space with Pringles, Cheez-It and Pop-Tarts alongside Snickers and M&M's.
Three — the balance sheet and capital return policy are in tension, and the market is pricing recovery it has not yet seen. Net debt rose $2,682 million to $19,080 million in FY2025 with net debt to reported EBITDA at 3.89 times; dividends paid of $2,487 million exceeded net earnings attributable of $2,451 million; buybacks collapsed 87% year-on-year in H1 2026 to $212 million; and Moody's rating rationale already flags a sizable and growing dividend as a governance risk. Current maturities more than doubled to $2,663 million at 30 June 2026, and legacy low-coupon euro notes will reprice sharply on refinancing. The stock trades at 20.5 times forward earnings against Kraft Heinz at 9.1 and General Mills at 11.9 — a premium that requires the recovery to land close to on time.
Catalysts and monitorables, next 12 months
| Catalyst | Expected timing | Why it matters |
|---|---|---|
| Q3 2026 results | Around 27 October to 3 November 2026 | Tests whether the Q2 volume inflection held into the second half and whether Europe organic growth turned positive |
| FY2026 results and FY2027 guidance | Early February 2027 | The single most important event in the sequence: management has pre-committed to strong 2027 EPS growth "insulated from commodity volatility." Initial FY2027 guidance will either validate or break the recovery thesis |
| CAGNY 2027 | February 2027 | Whether the long-term algorithm survives a second year of underperformance |
| 2026/27 West African main crop, harvest from October 2026 | Q4 2026 onward | Cherelle formation surveys already flagged below average; a poor main crop reprices the entire recovery case |
| Cocoa forward curve and hedge roll disclosure | Ongoing | The 12–24 month hedging lag means the FY2027 cost base is being set now |
| European chocolate share and volume trajectory | Quarterly | Management called early positive share trends in Q2 2026; sustained recovery is required |
| US biscuits consumption and share | Quarterly | The independent demand problem; watch North America volume/mix |
| Mars Snacking competitive response | Ongoing | Integration of Kellanova into Mars Snacking will produce pricing and shelf-space effects through 2026–27 |
| Ultra-processed foods litigation | Ongoing | Martinez dismissed permanently 30 June 2026; San Francisco enforcement action, Ford federal complaint and the Wisconsin $1 billion class action all live |
| CFO transition execution | Through 2026 | Amit Banati took the role 1 July 2026 with Zaramella retaining commercial operations as COO — an unusual split that concentrates commercial authority outside finance |
| ERP System Implementation milestones | Through year-end 2028 | $1.2 billion budget; costs of $163 million in FY2025 and $108 million in H1 2026 |
| Restructuring programme quantification | Next disclosure | Programme initiated Q4 2025 with no disclosed size or savings target — a material information gap |
| Balance sheet deleveraging | Quarterly | Whether net debt to EBITDA moves back toward 2.5 times as EBITDA recovers |
| Bolt-on M&A in cakes and pastries | Opportunistic | 3.5% share of a $89 billion market is the clearest strategic gap |
Analyst verdict
Mondelēz International enters the second half of 2026 as a fundamentally sound business recovering from a genuine but externally imposed shock, priced for a recovery that has begun but is not yet proven. The FY2025 result — revenue up 5.8% to a record $38,537 million while diluted EPS fell 44.7% to $1.89 — is best read not as a deterioration in franchise quality but as the arithmetic consequence of a single input cost moving several standard deviations against a portfolio that is a third chocolate. The evidence for franchise durability is the cash statement: $4,514 million of operating cash flow and $3,235 million of free cash flow generated while accounting earnings halved.
The recovery case rests on three legs, of which two are already visible in the data and one is not. Cocoa has corrected sharply, and the hedging lag means the benefit lands in FY2027 rather than FY2026 — this is mechanical and largely outside management's control. Emerging markets never stopped working, delivering 7.2% organic growth in FY2025 and volume-led growth of 5.3% in H1 2026, and represent 39.9% of revenue. The unproven leg is developed markets: North America has declined for two consecutive years on a demand and share problem that cocoa normalisation does not fix, and European chocolate volumes must recover from a 5.3 point FY2025 decline against a competitor set newly consolidated by the $36 billion Mars-Kellanova combination.
Management's decision to reinvest FY2026 revenue upside rather than flow it to EPS is the correct commercial choice and the right signal about where the problem lies — but it also means investors are being asked to underwrite FY2027 rather than FY2026. At 20.5 times forward earnings against packaged-food peers in the 9 to 12 times range, that underwriting is not being offered cheaply. The balance sheet adds a constraint rather than a crisis: net debt to reported EBITDA of 3.89 times, a GAAP dividend payout above 100%, an 87% reduction in buybacks, and a rating agency that has explicitly flagged dividend policy as a governance concern.
The disciplined position is that this is a quality asset in a mid-recovery, where the risk-reward is balanced rather than compelling. The FY2026 fourth-quarter results and initial FY2027 guidance, due early February 2027, are the decision point: management has pre-committed to strong 2027 EPS growth insulated from commodity volatility, and that commitment will either be honoured or it will not. Until then, the appropriate stance is close monitoring of three specific series — North America volume/mix, European organic growth, and the 2026/27 West African crop — rather than conviction in either direction.
End of dossier.
Prepared from publicly available primary sources. Figures flagged "nd" were not verifiable against primary documentation within this research pass and have not been estimated. Where sources conflicted — notably on institutional ownership stakes, price-to-sales calculation, and the free cash flow ambition articulated at CAGNY 2026 — both readings have been presented with the discrepancy noted.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Age | Title | In role since | Prior background |
|---|---|---|---|---|
Dirk Van de Put | 65 | Chair and Chief Executive Officer | CEO November 2017; Chairman April 2018 | President and CEO, McCain Foods (2011–2017); COO McCain (2010–2011); President and CEO, Global OTC Consumer Health, Novartis (2009–2010); 24 years across Danone, The Coca-Cola Company and Mars |
Luca Zaramella | 56 | EVP and Chief Operating Officer | COO and CFO from February 2026; CFO role transferred to Banati 1 July 2026 | EVP and CFO August 2018–February 2026; SVP Corporate Finance, CFO Commercial and Treasurer 2016–2018; SVP and Corporate Controller 2014–2016; SVP Finance, Mondelēz Europe 2011–2014; joined the company 1996 |
Amit Banati | 57 | EVP and Chief Financial Officer | 1 July 2026 | CFO, Kenvue Inc.; Vice Chair and CFO, Kellanova (formerly Kellogg Company); President, Asia Pacific Middle East and Africa at Kellogg; earlier roles at Procter & Gamble, Cadbury Schweppes and Kraft Foods |
Deepak D. Iyer | 58 | EVP and President, Asia Pacific, Middle East and Africa | June 2023 | President India 2016–2023; prior leadership at PepsiCo, Wrigley India and Bharti AXA General Insurance; joined 2016 |
Volker Kuhn | 58 | EVP and President, Europe | April 2025 | President, Hygiene at Reckitt Benckiser 2021–2024; Chief Transformation Officer 2020–2021; 26 years at Procter & Gamble |
Stephanie Lilak | 56 | EVP and Chief People Officer | January 2024 | Chief People Officer, Bumble Inc. 2021–2023; SVP and CHRO, Dunkin' Brands 2019–2021; 23 years at General Mills |
Mariano C. Lozano | 59 | EVP and President, Latin America | April 2022 | 21-plus years at Danone SA including CEO, Danone North America |
Martin Renaud | 58 | EVP, Chief Marketing and Sales Officer | CMSO February 2022; CMO from January 2018 | 28-plus years at Danone SA including President, Fresh Dairy Europe |
Laura Stein | 64 | EVP, Corporate & Legal Affairs, General Counsel and Corporate Secretary | September 2023; joined as EVP and GC January 2021 | 16 years at The Clorox Company, most recently EVP General Counsel and Corporate Affairs |
Gustavo C. Valle | 61 | EVP and President, North America | March 2022 | EVP and President Latin America 2020–2022; CEO Axia Plus LLC 2018–2020; 20-plus years at Danone SA including EVP Dairy Division Worldwide |
Board of Directors
| Director | Principal occupation | Independent |
|---|---|---|
Dirk Van de Put | Chair and CEO, Mondelēz International, Inc. | No |
Patrick T. Siewert — Lead Independent Director | Chairman Asia, Restaurant Brands International; formerly Head of Consumer, Media and Retail, The Carlyle Group Asia (retired); director since October 2012 | Yes |
Ertharin Cousin | Founder, President and CEO, Food Systems for the Future Institute; former Executive Director, United Nations World Food Programme | Yes |
Cees 't Hart | Former Chief Executive Officer, Carlsberg Group | Yes |
Brian McNamara | Chief Executive Officer, Haleon plc; joined the Board in 2024 | Yes |
Jorge S. Mesquita | Former CEO, BlueTriton Brands, Inc.; former EVP and Worldwide Chairman Consumer, Johnson & Johnson; director since 2012 | Yes |
Nancy McKinstry | Former CEO and Chair of the Executive Board, Wolters Kluwer N.V. | Yes |
Jane Hamilton Nielsen | Former Chief Operating Officer, Ralph Lauren Corporation | Yes |
Paula A. Price | Former EVP and Chief Financial Officer, Macy's, Inc. | Yes |
Michael A. Todman | Former Vice Chairman, Whirlpool Corporation | Yes |
Directors' Remuneration
| Committee | Principal remit |
|---|---|
Audit Committee | Financial reporting oversight, external auditor, internal controls, safety priorities and performance, ESG-related SEC disclosure controls and assurance; also delegated authority to declare the quarterly dividend, exercised on 13 August 2026 |
Governance, Membership and Sustainability Committee | Board composition and refreshment, ESG policies and programmes, corporate citizenship, social responsibility, food labelling, marketing and packaging, philanthropic and political activities, Board ESG education |
People and Compensation Committee | Executive compensation, human capital priorities, workplace safety and employee wellness, pay equity, talent sourcing, talent management and development, incentive plan KPIs |
Finance Committee | Capital structure, financing and treasury oversight |
Directors' Remuneration by Executive
| Executive | Fiscal year | Total compensation (USD) |
|---|---|---|
Dirk Van de Put, Chair and CEO | 2025 | 24,516,114 |
Dirk Van de Put, Chair and CEO | 2024 | 22,304,723 |
Major Shareholders
| Holder | Approximate stake (percent) |
|---|---|
The Vanguard Group, Inc. | 9.8–9.9 |
BlackRock, Inc. | 7.2–7.4 |
Capital Research and Management Company | 4.5–7.3 |
State Street Global Advisors, Inc. | 4.5 |
JP Morgan Asset Management | 3.5–3.6 |
Geode Capital Management, LLC | 2.1–2.2 |
T. Rowe Price Group, Inc. | 1.4–2.2 |
UBS Asset Management AG | 1.5 |
Norges Bank Investment Management | 1.3–1.5 |
Massachusetts Financial Services Company | 1.3 |
Competitive Landscape
Key Competitors
| Competitor | Ownership | Primary overlap | Competitive positioning versus Mondelēz |
|---|---|---|---|
Nestlé S.A. | Public (SIX: NESN) | Chocolate, confectionery, wafers | Larger and more diversified across food and beverage; KitKat, Aero, Smarties. Broader but less snacking-focused |
Mars, Incorporated | Private | Chocolate, gum, candy, and — post-Kellanova — biscuits and savoury snacks | The most significant competitive change of the period. The approximately $36 billion Kellanova acquisition completed 11 December 2025, uniting Snickers, M&M's, Twix, Skittles, Extra and KIND with Pringles, Cheez-It, Pop-Tarts, Rice Krispies Treats and RXBAR under Mars Snacking, with combined annual revenues cited at approximately $36 billion. Mars is now a direct scale competitor in both of Mondelēz's core categories rather than chocolate alone |
Ferrero Group | Private | Chocolate, biscuits, spreads | Nutella, Kinder, Ferrero Rocher, Tic Tac; also owns former Kellogg's US cereal assets. Aggressive acquirer, premium positioning |
The Hershey Company | Public (NYSE: HSY) | Chocolate, snacks | Market capitalisation approximately $37.0 billion in August 2026. Dominant in US chocolate; far more concentrated geographically and in cocoa exposure |
Chocoladefabriken Lindt & Sprüngli AG | Public (SIX: LISN) | Premium chocolate | Premium and super-premium positioning; direct competitor to Toblerone and Côte d'Or in travel retail |
pladis Global | Private (Yıldız Holding) | Biscuits | McVitie's, Godiva, Ülker; strong UK, Türkiye and Middle East biscuit overlap |
Kellanova | Acquired by Mars, December 2025 | Biscuits, crackers, savoury snacks, bars | Formerly the closest listed comparable in savoury snacking; now inside Mars |
General Mills, Inc. | Public (NYSE: GIS) | Snack bars, sweet baked goods | Market capitalisation approximately $27.1 billion. Nature Valley overlaps with CLIF |
The Kraft Heinz Company | Public (NASDAQ: KHC) | Cheese and grocery, snacking adjacencies | Market capitalisation approximately $32.1 billion. Shared 2012 spin-off heritage and reciprocal IP licences |
PepsiCo, Inc. (Frito-Lay and Quaker) | Public (NASDAQ: PEP) | Savoury snacks, bars | The largest global savoury snacking business; competes for shelf space and snacking occasions rather than category-for-category |
Danone S.A. | Public (EPA: BN) | Adjacent snacking and dairy | Market capitalisation approximately $53.6 billion. Sold its biscuits business to Mondelēz's predecessor in 2007; a notable source of Mondelēz executive talent, with four current executive officers alumni |
Grupo Bimbo | Public (BMV: BIMBO) | Baked snacks, cakes and pastries | Sold Ricolino to Mondelēz in 2022 but remains the dominant baked-goods competitor across the Americas |
Britannia Industries and Parle Products | Public and private, India | Biscuits | The principal barriers to Mondelēz biscuit share gain in India, one of the named priority growth markets |
Perfetti Van Melle, Haribo, Meiji, Orion, Want Want | Private and public | Gum, candy, biscuits, regional | Regional and category-specific competitors of varying scale |
Peer Comparison FY2025
| Metric | Mondelez FY2025 | Hershey | Kraft Heinz | General Mills |
|---|---|---|---|---|
Market capitalisation (USD Bn, Aug 2026) | 81.2 | 37.0 | 32.1 | 27.1 |
Net revenue (USD Bn, latest FY) | 38.5 | — | — | — |
Reported revenue growth (percent) | 5.8 | — | — | — |
Gross margin (percent) | 28.4 | — | — | — |
Operating margin (percent) | 9.2 | — | — | — |
Recent Developments
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