Mondelēz International Reports Q2 Results
Net revenues declined 0.8%, organic net revenue grew 4.6%, adjusted EPS was $0.57, up 9%
Mondelez International reported second-quarter 2019 results with adjusted earnings of 57 cents per share. On a constant-currency basis, adjusted earnings improved nearly 9% year over year, courtesy of operating gains and share repurchases.
Net revenues dropped almost 0.8% year over year to $6,062 million due to currency headwinds. On an organic basis, revenues rose 4.6%, thanks to balanced pricing and volume/mix. Revenues from emerging markets declined 1.6% to $2,272 million but increased 7.6% on an organic basis. Revenues from developed markets went down 0.3% to $3,790 million, while grew 2.8% on an organic basis.
Regionally, revenues in Latin America, Europe and Asia, Middle East & Africa declined 4.8%, 2.4% and 0.6%, respectively. Nonetheless, on an organic basis, revenues across these regions depicted respective improvements of 10.9%, 3.9% and 4.7%. In North America, revenues rose 3% and grew 2.5% organically.
Adjusted gross profit dipped 0.6% to $2,452 million (up 4.3% on a cc basis). Adjusted gross margin was flat at 40.6%. Gross profit was driven by productivity growth, improved pricing, volume improvements and operating leverage, somewhat negated by escalated input costs.
Also, the company’s adjusted operating income declined 0.8% to $1,008 million (up 4% on a cc basis) from the prior-year quarter. Further, adjusted operating margin remained flat at 16.7%.
"Our strong second quarter performance demonstrates the potential of our strategy to accelerate volume-driven top-line growth in both developed and emerging markets," said Dirk Van de Put, Chairman and CEO. "Our more consumer-centric mindset is driving investments in advertising and promotion of our global and local brands, as well as accelerated innovation and improved distribution capabilities, building a sustainable foundation for long-term growth and value creation for our shareholders".
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