Mondelēz International reports 2.1% revenue increase in second quarter results

NEW ZEALAND – Mondelēz International, Inc., has reported 2.1% increase in net revenues, with organic net revenue growth of 3.5% in its second quarter 2018 results.

According to the company, the operating income margin was 7.9%, down 270 basis points, while adjusted operating income margin was 16.7%, up 130 basis points.

The diluted EPS was US$0.22, down 31%, adjusted EPS was US$0.56, up 15% on a constant-currency basis, announcing 18% increase to quarterly cash dividend.

The company explained that net revenues increase included the impact of prior year divestitures, while the organic net revenue increase included the benefit of lapping the prior year’s malware incident, and the negative impact of Easter shipment timing and the Brazil trucking strike.

“We delivered a strong second quarter, in both developed and emerging markets, building on the momentum created in the beginning of the year,” said Dirk Van de Put, Chairman and CEO.

“We posted solid top-line results with good performance across all regions. We remain focused on executing against our plans and will share the results of our strategic review with investors in September.”

Gross profit margin was 41.6%, an increase of 290 basis points driven primarily by a favorable impact from currency and commodity hedging activities.

Adjusted Gross Profit margin was 40.4%, an increase of 60 basis points, driven by productivity savings and improved volume leverage.
The operating income margin was 7.9%, down 270 basis points, driven primarily by the impact from pension participation changes in North America, partially offset by a favorable impact from currency and commodity hedging activities.

Adjusted Operating Income margin increased 130 basis points to 16.7% due to productivity savings and lower selling, general & administrative costs.

Diluted EPS was US$0.22, down 31%, driven by the impact from pension participation changes in North America and loss on debt extinguishment & related expenses partially offset by a favorable impact from currency and commodity hedging activities.

Adjusted EPS was US$0.56 and grew 15% on a constant-currency basis, driven primarily by operating gains.

The company also reported that it repurchased approximately US$650 million of its common stock and paid approximately US$300 million in cash dividends.

Year to date, the company has returned approximately US$1.8 billion.

The company’s Board of Directors also declared a quarterly cash dividend of US$0.26 per share of Class A common stock, an increase of 18%.

This dividend is payable on October 12, 2018, to shareholders of record as of September 28, 2018.

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