Mondelez Q3 2024 $MDLZ (+0,25 %)

Financial performance: The company reported an increase in net sales of USD 175 million (1.9%) to USD 9,204 million in the third quarter of 2024. Organic net sales recorded a more significant increase of USD 474 million (5.4%) to USD 9,324 million. However, the operating result fell by USD 226 million (16.4%) to USD 1,153 million.

Balance sheet analysis: Total debt amounted to USD 19.8 billion as at September 30, 2024, a slight increase from USD 19.4 billion at the end of 2023. The debt-to-equity ratio was 0.42, which indicates a stable level of debt.

Income statement: Net earnings attributable to Mondelēz International decreased by USD 131 million (13.3%) to USD 853 million. Diluted earnings per share also decreased by USD 0.09 (12.5%) to USD 0.63.

Cash flow analysis: Net cash from operating activities increased to USD 3,451 million for the nine months ended September 30, 2024, compared to USD 3,150 million for the same period in 2023. The company also paid dividends of USD 1,722 million in the first nine months of 2024, compared to USD 1,581 million in the same period in 2023.

Key ratios and profitability: The company's debt-to-equity ratio was 0.42 as of September 30, 2024, and the operating income margin decreased, reflecting the decline in operating income.

Segment analysis: The operating result varied across the different regions, with Europe and North America making significant contributions. Europe reported a segmental operating income of USD 605 million, while North America reported USD 918 million.

Competitive analysis: The company faces competition and pricing pressures that impact its financial performance. The divestment of the chewing gum business in developed markets also impacted net sales.

Forecasts and management comments: The company is focused on delivering profitable, long-term growth using key operating metrics such as organic net sales, adjusted operating profit and adjusted earnings per share. However, the outlook remains cautious due to macroeconomic uncertainties and commodity price pressures.

Risks and opportunities: Key risks include geopolitical uncertainties, commodity price volatility and currency exchange rate fluctuations. Opportunities lie in exploiting the regional operating scale and pursuing growth opportunities in key markets.

Summary and strategic implications: The company is navigating a challenging environment where macroeconomic pressures and competitive dynamics are impacting financial performance. Although sales growth is positive, profitability ratios have deteriorated. A strategic focus on cost control, price adjustments and regional growth opportunities will be critical to improve financial results. The company's ability to manage raw material costs and currency impacts will also be critical to maintaining profitability.

Positive statements:

• Net sales increased by USD 175 million (1.9%) to USD 9,204 million in the third quarter of 2024, while organic net sales increased by USD 474 million (5.4%) to USD 9,324 million.
• Net sales in developed markets increased by 3.1% and organic net sales in developed markets increased by 5.6%.
• The company repurchased approximately 17 million shares at an average price of USD 70.09 per share, totaling approximately USD 1.2 billion during the nine months ended September 30, 2024.
• Net cash provided by operating activities increased to USD 3,451 million for the nine months ended September 30, 2024, compared to USD 3,150 million for the same period in 2023.
• The company has approximately USD 3.2 billion of remaining share repurchase capacity as of September 30, 2024.

Negative statements:

• Operating income decreased by USD 226 million (16.4%) to USD 1,153 million for the three months ended September 30, 2024.
• Net earnings attributable to Mondelēz International decreased by USD 131 million (13.3%) to USD 853 million.
• Diluted earnings per share attributable to Mondelēz International decreased by USD 0.09 (12.5%) to USD 0.63.
• The impact of the sale of the chewing gum business in developed markets in 2023 resulted in a year-on-year decrease in net sales of USD 179 million in the third quarter of 2024.
• Currency-related items reduced net sales by USD 120 million due to unfavorable changes in currency exchange rates.