Mondelēz International sees margins expand

2 Nov 2015

Mondelēz International has reported its third quarter 2015 results, reflecting, it said, continued strong adjusted operating income margin expansion and solid organic net revenue growth. Adjusted EPS was flat versus the prior year on a constant-currency basis.

Mondelēz International sees margins expand

Mondelēz International has reported its third quarter 2015 results, reflecting, it said, continued strong adjusted operating income margin expansion and solid organic net revenue growth. Adjusted EPS was flat versus the prior year on a constant-currency basis due to dilution related to the company's recently created coffee joint venture.

"We delivered strong margin expansion in the third quarter by progressing our transformation agenda in a volatile and challenging macroeconomic environment," said Irene Rosenfeld, Chairman and CEO. "We're continuing to aggressively reduce costs to expand margins and provide the fuel for incremental investments behind our Power Brands and route-to-market capabilities to drive sustainable revenue growth and improve market shares. As a result, we remain confident in our ability to deliver our 2015 outlook and our 2016 Adjusted Operating Income margin target of 15 to 16 percent, while continuing to return significant capital to our shareholders."

On a reported basis, net revenues were $6.8 billion, down 17.8%, including a negative 13.6 percentage point impact from currency and a negative 9.3 percentage points from the coffee business transactions. Operating income was $7.8 billion, up 815%, including a $7.1 billion pre-tax gain from the coffee transaction. Diluted EPS was $4.46, up $3.93.