How should traders approach MDLZ's earnings reports?

**Traders should approach Mondelez International's (MDLZ) earnings reports with a nuanced perspective, considering both the potential challenges and opportunities**: 1. **Expectations of Organic Growth**: Historically, Mondelez has anticipated organic net revenue growth of 3% to 5% and high single-digit adjusted EPS growth. Analysts expect revenue of $8.46 billion and EPS of $0.79 for the upcoming quarter. Traders should monitor the company's execution against these targets. 2. **Impact of Cocoa Inflation**: Cocoa prices have significantly impacted Mondelez's financials, with the company expecting a 10% decline in adjusted EPS in 2025 due to unprecedented cocoa cost inflation. Traders should watch for strategies to mitigate this impact, such as the company's "chocolate business playbook." 3. **Geopolitical and FX Risks**: Mondelez faces risks from geopolitical and FX uncertainties, which could introduce volatility in their forecast. Traders should stay informed about these factors and how they might affect Mondelez's performance. 4. **Regional Variance**: The company has seen divergent performance across regions, with notable growth in Asia, Middle East & Africa, and Europe, but a decline in Latin America. Traders should consider these regional trends when assessing the company's performance. 5. **Pricing Strategies**: Mondelez has implemented effective pricing strategies, which contributed to the 5.2% year-over-year growth in organic net revenues in Q4. Traders should monitor future pricing decisions, especially in light of the anticipated stronger EU pricing. 6. **Return to Shareholders**: Mondelez has a history of returning capital to shareholders, with a free cash flow of $3.5 billion and returns of $4.7 billion in 2024. The company's commitment to shareholder returns could influence investor sentiment. In conclusion, while Mondelez faces challenges from cocoa inflation and geopolitical risks, the company's strategic initiatives and regional growth opportunities provide a complex picture for traders. Monitoring the company's execution on its growth strategy, managing cocoa-related costs, and staying informed about regional performance will be key for traders approaching MDLZ's earnings reports.