Mondelez International (MDLZ) Q3 Earnings call transcript Oct 29, 2024

Mondelez International's third quarter earnings call presented a strong financial performance, with a focus on strategic growth initiatives and a confident outlook for the future. The company's leadership team, including CEO Dirk Van de Put and CFO Luca Zaramella, provided insights into the company's financial results, strategic plans, and market dynamics.

Financial Highlights and Strategic Initiatives

Mondelez International reported a strong third quarter, with organic net revenue growing by 5.4% and adjusted gross profit dollar growth of 11.2%. The company's focus on core categories such as chocolate, biscuits, and baked snacks has yielded positive results, with these categories showing strong consumption and consumer favorability. The acquisition of a majority stake in Evirth, a leading player in cakes and pastries in China, is an exciting development that expands Mondelez's presence in the fast-growing cakes and pastries category.

Market Dynamics and Growth Opportunities

Mondelez International is seeing a strong recovery in developed markets, with solid revenue growth and an increasing healthy volume/mix. Consumers are continuing to embrace chocolate and biscuits as everyday indulgences, and the company's revenue growth management strategies enable it to meet every consumer's needs with a broad array of product formats, pack sizes, and price points. In emerging markets, there is a growing trend towards digital healthcare solutions, and Mondelez is positioning itself to capitalize on this trend by expanding its presence in the telemedicine sector.

Investor Questions and Future Outlook

During the question-and-answer session, analysts asked about the company's approach to pricing and cost management in light of the challenges posed by cocoa costs. Mondelez International's leadership team emphasized their focus on protecting the health of the chocolate category and holding or gaining market share. They also outlined their plans for managing costs and optimizing pricing strategies to navigate the short-term cocoa dynamic while positioning the business for long-term sustainable growth.

Conclusion

Mondelez International's third quarter earnings call highlights a strong financial performance and a promising outlook for the future. The company's strategic focus on core categories, market expansion, and cost management initiatives position it well for continued growth. With a clear vision for the future and a strong financial foundation, Mondelez International is well-positioned to capitalize on opportunities in the global snacking market and deliver attractive sustainable earnings growth.