Mondelez's Q2 2025 Earnings Call: Unpacking Contradictions in Consumer Sentiment, Cocoa Strategies, and Market Recovery

Consumer sentiment and sales performance in North America, cocoa pricing strategy, European chocolate volume recovery, impact of destocking in North America, and consumer sentiment and demand in North America are the key contradictions discussed in Mondelez International's latest 2025Q2 earnings call.



Regional Performance and Consumer Behavior:
- Mondelez reported a strong quarter in Europe, with good share gains and resilient consumer spending, despite inflationary pressures and significant price increases in chocolate.
- In the United States, Mondelez faced a difficult situation with a soft biscuits category due to consumer anxiety over personal finances, job expectations, and inflation.
- Emerging markets showed double-digit growth with sustained volume and value growth, driven by strong share gains and consumer confidence despite economic pressures.

Pricing Strategy and Cost Management:
- Mondelez implemented incremental pricing in North America to mitigate inflationary pressures, particularly due to increased costs for cocoa and other inputs.
- The company focused on selective pricing, protecting key price points, and maintaining consumer-friendly formats to mitigate the impact on consumption.
- Mondelez emphasized cost control and productivity improvements, particularly in North America, to boost profitability in the second half of the year.

Cocoa Market Dynamics and Future Outlook:
- Mondelez benefited from favorable cocoa market fundamentals, including lower prices driven by reduced demand and good crop projections for the 2026 season.
- The company took advantage of lower cocoa butter prices, which are expected to dampen costs in 2026.
- Mondelez remains cautious about potential competitive actions and is prepared to adjust pricing or reinvest in working media to maintain demand in case cocoa prices remain elevated.

Share Repurchase and Debt Management:
- Mondelez plans to continue with its share repurchase program, given the current share prices and expectations of improved earnings with cocoa price normalization.
- The company manages its debt composition and net investment hedges to mitigate potential risks from currency fluctuations and forex movements.