USA – Mondelez International, Inc. has reported robust financial results for the fourth quarter and full year of 2023, recording a 14.4 percent surge in net revenues for the fiscal year.
The company reported a total net revenue of US$36.02 billion, up from US$31.50 billion, driven by a commendable organic net revenue growth of 14.7 percent.
This remarkable performance was attributed to various factors, including the positive impact of pricing strategies and favorable volume/mix, as outlined by Dirk Van de Put, the Chief Executive Officer of Mondelēz International.
He stated, “Our double-digit top line performance was driven by strong pricing execution and positive volume/mix growth.”
The growth was further fuelled by incremental sales from strategic acquisitions made in 2022, including Clif Bar and Ricolino. Additionally, a short-term distributor agreement contributed to the upward trajectory, partially offset by unfavorable currency effects and the impact of a divestiture.
The company’s gross profit saw a notable increase of US$2,452 million, with a corresponding 230 basis points rise in gross profit margin to 38.2 percent.
This growth was primarily attributed to favorable year-over-year changes in mark-to-market impacts from derivatives, an increase in Adjusted Gross Profit margin, and lower acquisition-related costs.
Operating income also witnessed a substantial boost of US$1,968 million, leading to an operating income margin of 15.3 percent, up by 410 basis points.
This surge was primarily driven by positive year-over-year changes in mark-to-market gains/(losses) from currency and commodity hedging activities, reduced acquisition-related costs, lower impact from the European Commission legal matter, and other favorable factors.
Looking ahead to 2024, Mondelez International is optimistic, projecting organic net revenue growth in the range of 3 to 5 percent.
The company aims for high single-digit Adjusted Earnings Per Share (EPS) growth on a constant currency basis, building upon the strong performance of 2023. The anticipated free cash flow for 2024 is expected to surpass US$3.5 billion.
Top Employer Recognition
Meanwhile, the company has been recognized as a Top Employer in Africa for the fifth consecutive year by the Top Employers Institute.
The multinational confectionery and food giant secured the top spot in Nigeria and ranked fourth in South Africa among Africa’s best employers.
To achieve this recognition, Mondelez International underwent an extensive evaluation process by participating in an HR Best Practices Survey. This survey covered key themes such as people strategy, work environment, talent acquisition, learning, diversity & inclusion, and wellbeing.
Mondelez International released a statement saying, “At Mondelēz International, we place enormous emphasis on creating a values-driven workplace that cares for employees, customers, and consumers.
This is important in a world where the competition to attract and retain top talent is fierce, and the emphasis on diversity, equity, and inclusion continues to be a key feature of thriving and successful organizations.”
With a diverse portfolio of global and local brands, including iconic names such as Oreo, Cadbury, and Stimorol, Mondelez International operates in 150 countries with a talent base of approximately 80,000 employees globally.
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