Mondelēz posts ”very strong results”

10 Feb 2016

Mondelēz International has reported its fourth quarter and full year 2015 results, reflecting, the company said, strong adjusted operating income margin expansion and solid organic net revenue growth, resulting in double-digit adjusted EPS growth.

Mondelēz posts ”very strong results”

Mondelēz International has reported its fourth quarter and full year 2015 results, reflecting, the company said, strong adjusted operating income margin expansion and solid organic net revenue growth, resulting in double-digit adjusted EPS growth on a constant-currency basis.

"In 2015, we delivered another year of very strong results despite the highly volatile macroeconomic environment," said Irene Rosenfeld, Chairman and CEO. "Our aggressive cost-savings programs drove significant margin expansion. In addition, we increased our marketing investments, enabling us to steadily accelerate organic revenue growth and improve our share performance as the year progressed."

"We remain confident in our ability to execute our transformation agenda despite weakening macroeconomic conditions in emerging markets. As a result, in 2016, we expect to deliver another year of strong margin expansion and double-digit EPS growth on a constant currency basis by continuing to reduce supply chain and overhead costs. We also expect underlying organic revenue growth that's in line with our categories as we prudently invest behind our Power Brands and innovation platforms. In addition, we'll continue to build on this momentum going forward and now have clear line of sight to an Adjusted Operating Income margin of 17 to 18% in 2018, which represents about a 400 basis point improvement from 2015."

For the full year, net revenues were $29.6 billion, down 13.5%, including a negative 12.6 percentage point impact from currency and a negative 5.4 percentage point impact from the coffee business transactions. Operating income was $8.9 billion, up 174.4%, including a $6.8 billion pre-tax gain from the coffee transaction and a $778 million one-time charge for a change in accounting for the Venezuela operations. Diluted EPS was $4.44, up $3.16, including a positive impact of $4.05 from the coffee transaction gain and a negative $0.48 impact related to the Venezuela accounting charge.

On a reported basis for the fourth quarter, net revenues were $7.4 billion, down 16.6%, including a negative 11.4 percentage point impact from the coffee business transactions and a negative 11.0 percentage point impact from currency. The company posted an operating loss of $557 million, down 194.6%, including the Venezuela accounting charge and a $313 million decrease to the coffee transaction pre-tax gain recorded in the third quarter. Diluted EPS was a negative $0.46, down $0.75, including a negative $0.48 impact related to the Venezuela charge, a negative $0.19 impact from the adjustment to the coffee transaction gain and a negative $0.09 impact from currency.