Mondelez (MDLZ) Q4 Earnings Meet Estimates, Sales Up Y/Y
Zacks Investment Research | Jan 28, 2021 09:40PM ET
Mondelez (NASDAQ:MDLZ) International, Inc. Mondelez International, Inc. Quote
Revenues from emerging markets declined 2.5% to $2,474 million, while the same increased 4.1% on an organic basis. Revenues from developed markets increased 10.3% to $4,824 million, while the same rose 2.8% on an organic basis.
Regional-wise, revenues in Asia, Middle East & Africa, Europe and North America increased 5%, 5.8% and 13.9% year over year, respectively. However, the same declined 15.4% in Latin America. On an organic basis, revenues increased 1.2%, 3%, 3% and 4.5% in Latin America, Asia, Middle East & Africa, Europe and North America, respectively.
Adjusted gross profit increased $73 million at cc. However, adjusted gross profit margin contracted 80 basis points (bps) to 39.2% due to escalated raw material costs that were somewhat offset by pricing and manufacturing productivity net of additional coronavirus-induced expenses.
The company’s adjusted operating income increased $60 million at cc. Further, adjusted operating income margin expanded 40 bps to 16.3% led by SG&A leverage that were somewhat offset by reduced adjusted gross profit margin.
Other Financials/h3
Mondelez ended the quarter with cash and cash equivalents of $3,619 million, long-term debt of $17,276 million and total equity of $27,654 million.
The company generated cash from operating activities of $3,964 million during 12 months ended Dec 31, 2020. Free cash flow was $3,101 million during the same time period.
During the quarter, the company distributed $1.1 billion to shareholders through dividend payouts and share buybacks. Management reinstated its share buyback program in November, which was suspended in March due to the coronavirus outbreak.
2021 Outlook/h3
For 2021, Mondelez anticipates its performance be in line with its long-term growth algorithm. Incidentally, the company projects organic net revenues to increase more than 3%. Further, management anticipates adjusted earnings per share (EPS) to grow high single-digit percent at cc. Favorable currency rates are expected to increase net revenue growth by nearly 3%, while adjusted EPS are likely to have a positive impact of 10 cents by the same. Also, free cash flow in envisioned to be more than $3 billion.
This Zacks Rank #3 (Hold) stock has increased 7.5% in the past three months compared with the Zacks Investment Research
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