Mondelēz International Remains Confident of Achieving Long-term Growth

 Breaking News
  • European Commission Clears Bayer’s Acquisition of Monsanto The European Commission has approved under the EU Merger Regulation the $62.5 billion acquisition of Monsanto by Bayer. The merger is conditional on the divestiture of an extensive remedy package, which addresses the parties’ overlaps in seeds, pesticides and digital agriculture. Commissioner Margrethe Vestager, in charge of competition policy, says: “We have approved Bayer’s plans to [...]...
  • Management Plan to Fortify Fishing Sector in Western Mediterranean Sea The European Commission has proposed a multi-annual plan for fish stocks in the western Mediterranean Sea. The proposal covers demersal fish stocks, ie fish that live and feed at the bottom of the seabed, and bring a significant income to the fisheries sector in the region. According to the latest data, it is estimated that in 2015, [...]...
  • Major International Summit in Belfast to Tackle Escalating Problem of Food Integrity Food-security experts from all over the world will converge on Belfast from 28-31 May 2018 for a major Summit on how to feed a growing global population – amid massive challenges such as climate change, Brexit, labyrinthine food-supply chains and food fraud on a global scale. The Belfast Summit on Global Food Integrity will be chaired by Professor Chris Elliott [...]...
  • Cargill’s Launches De-oiled Rapeseed Lecithin Products In response to growing consumer demand for label-friendly ingredients, Cargill is introducing a new range of de-oiled lecithin products to complete its portfolio of GMO and non-GMO lecithin products.  A first to market in Europe, Cargill’s de-oiled rapeseed lecithin products help bakery and snacks manufacturers deliver the recognizable ingredient label that consumers want, at an [...]...
  • Tetra Pak Scoops Top Award For Manufacturing Excellence Tetra Pak’s packaging material factory in Izmir, Turkey, has received the world’s top award for manufacturing excellence. In doing so, it becomes only the 22nd factory worldwide to win the prestigious award in more than 40 years. Appraised by the Japan Institute of Plant Maintenance​, the World Class Total Production Maintenance (TPM) Award is presented to facilities that [...]...

Mondelēz International Remains Confident of Achieving Long-term Growth

Mondelēz International Remains Confident of Achieving Long-term Growth
February 09
10:10 2017

Mondelēz International, the US-based global snacking giant, has reported a 12.5% decrease in net revenue to $25.923 billion for 2016, driven by the coffee business transactions, deconsolidation of the company’s Venezuelan operations and currency headwinds. However, organic net revenue increased 1.3%. Reported operating income decreased by 71.1% to $2.569 billion but adjusted operating income rose by 13.3% to $3.953 billion.

Mondelēz International is a world leader in biscuits, chocolate, gum, candy and powdered beverages, featuring global ‘Power Brands’ such as Oreo and belVita biscuits; Cadbury Dairy Milk and Milka chocolate; and Trident gum.

Operating income margin was 9.9%, down 20.1 percentage points, driven by the prior-year gain on the coffee business transactions, partially offset by the prior year loss on the Venezuela deconsolidation. Adjusted operating income margin expanded 230 basis points to 15.3%. These results reflect continued reductions in overhead costs and supply chain productivity savings.

The company returned $3.7 billion of capital to shareholders through share repurchases and dividends during the year.

“We continue to make solid progress toward our near-term margin targets, while investing for long-term growth,” says Irene Rosenfeld, chairman and chief executive of Mondelēz International. “Despite significant economic disruptions, political uncertainties and slower global category growth, we remain confident in and committed to our balanced strategy for both top- and bottom-line growth. Throughout the year, we continued to sharpen the focus of our portfolio, increase Power Brand investments and modernize our supply chain. These actions, together with our excellent cost discipline, position us well to deliver strong operating leverage that will drive sustainable value creation for our shareholders.”

Mondelēz International expects organic net revenue to increase at least 1% in 2017 and adjusted operating income margin in the mid-16 percent range. The company also expects double-digit adjusted EPS growth on a constant-currency basis. The company estimates currency translation would reduce net revenue growth by approximately 1% and adjusted EPS by approximately $0.03.

The company remains committed to its 2018 adjusted operating income margin target of 17% to 18%.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
  • April 5, 2018Slow food The forum for good taste
  • April 10, 2018EXPO XXI Warsaw International Expocentre
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here