What drove Mondelez's gross profit surge in Q1 2024?

Mondelez's gross profit margin increased by 0.36% in Q1 2024 compared to the same period in the previous year, according to the company's financial statements. This growth in gross profit margin can be attributed to several factors: 1. **Revenue Growth**: Mondelez has experienced robust revenue growth, with organic net revenue increasing by 9.8% in Q4 2023. This overall increase in sales contributes to higher gross profits. 2. **Pricing Strategies**: The company has implemented pricing increases, which have contributed to the growth in gross profit margin. For example, a 7.9% pricing increase in the fourth quarter was implemented, which likely had a positive impact on gross margins throughout the year. 3. **Cost Management**: Mondelez has focused on effective cost management and productivity gains, which have led to an increase in adjusted gross profit margin to 37.5% in 2023. This emphasis on cost efficiency likely played a role in the gross profit margin growth seen in Q1 2024. 4. **Divestitures and Portfolio Restramping**: The company's strategic divestitures, such as the sale of the developed market gum business, may have streamlined operations and reduced costs, potentially contributing to improved gross margins. In conclusion, Mondelez's gross profit surge in Q1 2024 can be attributed to a combination of revenue growth, effective pricing strategies, cost management, and strategic divestitures. |code|Ticker|Name|Date|Gross Profit Margin|Gross Profit Margin YoY|market_code| |---|---|---|---|---|---|---| |MDLZ|MDLZ.O|Mondelez|2023 Q2|38.4768|2.882995620156892|185| |MDLZ|MDLZ.O|Mondelez|2023 Q3|38.5514|6.714905773191317|185| |MDLZ|MDLZ.O|Mondelez|2023 Q4|38.2163|6.405555230720815|185| |MDLZ|MDLZ.O|Mondelez|2024 Q1|51.1302|36.00085116569802|185|