Mondelez 2025 Q2 Earnings Strong Performance with Net Income Up 6.8%

Mondelez (MDLZ), ranking 163rd by market capitalization, reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. Mondelez exceeded market expectations with a total revenue of $8.98 billion, surpassing the anticipated $8.84 billion. The company also announced a positive outlook, maintaining its full-year organic net revenue growth target of approximately 5% despite facing significant cocoa cost inflation affecting adjusted EPS. Additionally, Mondelez raised its quarterly dividend by 6%, demonstrating confidence in its long-term financial strength and commitment to returning capital to shareholders.

Revenue
Mondelez achieved a notable revenue increase of 7.7% in Q2 2025, reaching $8.98 billion compared to $8.34 billion in the previous year. The Biscuits & Baked Snacks segment significantly contributed $4.58 billion, while the Chocolate business added $2.66 billion. Gum & Candy generated $950 million, Beverages accounted for $227 million, and Cheese & Grocery contributed $571 million, culminating in total net revenues of $8.98 billion.

Earnings/Net Income
Mondelez's EPS grew by 8.9% to $0.49 in 2025 Q2, up from $0.45 in 2024 Q2, reflecting ongoing earnings momentum. The company's net income strengthened to $644 million, a 6.8% increase from the previous year's $603 million, showcasing sustained profitability and resilience.

Price Action
The stock price of Mondelez saw slight fluctuations following the earnings report. It edged up 0.19% during the latest trading day but fell 1.47% over the past week. However, month-to-date, the stock has risen by 2.89%, suggesting a mixed but generally positive investor sentiment.

Post-Earnings Price Action Review
The strategy of investing in Mondelez (MDLZ) shares after revenue increases quarter-over-quarter and holding for 30 days yielded moderate returns but lagged behind the benchmark. Though the strategy boasted a CAGR of 0.96%, it fell short by 39.56 percentage points compared to the benchmark. Despite indicating a low-risk profile with a maximum drawdown of 0% and a Sharpe ratio of 0.05, the strategy's volatility was significant, marked at 19.92%. The analysis suggests that while the approach offers limited risk, the substantial volatility presents considerable challenges, requiring careful assessment for future investment strategies.

CEO Commentary
Mondelēz International, Inc. reported strong Q2 2025 performance, with CEO Dirk Van de Put emphasizing accelerated top-line growth driven by effective pricing strategies in the chocolate segment and broad-based growth across most regions. He expressed confidence in the company's ability to meet commitments despite a challenging environment, attributing this resilience to the strength of its brands, global reach, and strategic capabilities. Van de Put highlighted the focus of the agile team on executing the strategic growth agenda while continuing to provide value and satisfaction to consumers.

Guidance
The company remains optimistic about its future performance, indicating expectations for continued growth despite market challenges. Mondelēz expects to sustain momentum through strategic initiatives, leveraging its competitive advantages, and adapting to evolving consumer demands. The outlook highlights confidence in delivering shareholder value while navigating cost pressures and enhancing operational efficiencies.

Additional News
In recent weeks, Mondelez has been actively returning value to its shareholders, announcing a 6% increase in its quarterly dividend to $0.50 per share, payable on October 14, 2025. The company also completed share repurchases totaling $1.653 billion in the first half of the year, reinforcing its commitment to shareholder returns. Additionally, Mondelez is progressing with its ERP System Implementation program, aiming to enhance operational efficiencies and support future growth strategies. These initiatives reflect Mondelez's focus on strengthening its financial position while maintaining a forward-looking approach in navigating market challenges.