Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$66.82Last close (Nov 1, 2023)
Post-Earnings Price$68.50Open (Nov 2, 2023)
Price Change
$1.68(+2.51%)
- Strong Volume Growth Across All Regions: Mondelez reported an overall volume/mix increase of nearly 4%, with significant gains in North America, Europe, and emerging markets . Emerging markets like India and Mexico experienced double-digit volume growth despite significant pricing, driven by resilient consumer demand and high consumer confidence .
- Positive Outlook and Expansion in Emerging Markets: The company expects continued volume expansion in emerging markets, supported by underpenetrated categories and distribution gains ** **. Acquisitions like Ricolino are progressing well, with plans to triple distribution points in Mexico, contributing to significant top-line synergies next year .
- Successful Strategic Investments in High-Growth Categories: Investments in snack bars are yielding strong results, with brands like Clif and Grenade performing exceptionally well and showing strong growth . Mondelez is also expanding into adjacent categories and leveraging existing brands into new products and markets, creating additional growth opportunities .
- Softness in North American consumer demand: Mondelez acknowledges that its categories in North America are experiencing "some softness," particularly among lower-income families. Consumers are shifting to non-measured channels like club stores and e-commerce and delaying trips to the store due to the phasing out of SNAP benefits. This could impact volume growth and market share.
- Rising costs and inflation pressures in 2024: The company expects inflation to be higher than mid-single digits in 2024, towards the higher end of 5% to 10%, due to increased commodity costs in cocoa, sugar, and energy. This could pressure margins and necessitate further pricing actions, potentially affecting demand.
- Potential long-term impact from weight-loss drugs (GLP-1s): Although Mondelez currently sees "absolutely no short-term impact" from GLP-1 drugs, the CEO acknowledges that over a 10-year period, there could be a "modest" volume impact of 0.5% to 1%. This could pose a risk to the company's snack categories.