Mondelez Q4 Earnings: Sales Miss, EPS Falls Short, Cocoa Inflation Threatens 2025

Mondelez International, the global snack food leader behind iconic brands like Oreo and Cadbury, reported lower-than-expected fourth-quarter earnings and warned of a 10% decline in adjusted earnings for 2025. The company cited cocoa cost inflation as a major headwind, with prices for the key ingredient surging to historic levels. While Mondelez International has implemented chocolate price increases to offset these rising costs, its leadership acknowledges the challenges ahead as price-sensitive consumers react to higher product prices.

Shares of Mondelez International dropped 5% to $53.70 in after-hours trading following the announcement, reflecting investor caution about the company's ability to maintain profitability in a volatile economic environment. Over the past year, Mondelez International's stock has fallen approximately 25%, reflecting broader concerns about inflationary pressures in the food industry.

Mondelez International reported a fourth-quarter net profit of $1.75 billion, or $1.30 per share, a significant increase from the $950 million, or $0.70 per share, posted in the same period last year. However, adjusted earnings per share (EPS), which exclude one-time costs, stood at $0.65—falling short of analyst forecasts of $0.66, according to FactSet.

On a constant currency basis, adjusted earnings per share (EPS) decreased 16%, largely due to weaker operating results and lower equity method investment earnings. This shortfall, combined with mounting cocoa cost inflation, underscores the challenges Mondelez International faces in maintaining its profit margins.

Despite these setbacks, Mondelez International reported total revenue growth of 3%, reaching $9.60 billion, just shy of the $9.64 billion forecast by analysts. The company remains optimistic about organic net revenue growth, projecting a 5% increase in 2025, even as higher raw material costs continue to put pressure on profitability.

How is Mondelez International navigating cocoa cost inflation?
With cocoa prices reaching record highs, Mondelez International faces increasing pressure to raise chocolate prices while ensuring that demand remains stable. The company has acknowledged that these price adjustments may lead to some consumer resistance, particularly as shoppers continue to grapple with post-pandemic inflation.

CEO Dirk Van de Put stated that the company is executing its chocolate business strategy to manage rising input costs while sustaining long-term growth. “We are navigating unprecedented cocoa cost inflation while remaining committed to our growth strategy,” he said.

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On February 4, 2025, Mondelez International Inc (MDLZ) released its 8-K filing detailing its financial performance for the fourth quarter and full year of 2024. The company, a global leader in the snack industry with iconic brands like Oreo and Cadbury, reported a mixed financial performance, with revenue surpassing expectations but earnings per share (EPS) falling short.

Over the past year, Mondelez International’s stock has fallen approximately 25%, reflecting broader concerns about inflationary pressures in the food industry. The company’s fourth-quarter net profit of $1.75 billion, or $1.30 per share, was a significant increase from the $950 million, or $0.70 per share, posted in the same period last year. However, adjusted earnings per share (EPS), which exclude one-time costs, stood at $0.65—falling short of analyst forecasts of $0.66, according to FactSet.

On a constant currency basis, adjusted earnings per share (EPS) decreased 16%, largely due to weaker operating results and lower equity method investment earnings. This shortfall, combined with mounting cocoa cost inflation, underscores the challenges Mondelez International faces in maintaining its profit margins.

Despite these setbacks, Mondelez International reported total revenue growth of 3%, reaching $9.60 billion, just shy of the $9.64 billion forecast by analysts. The company remains optimistic about organic net revenue growth, projecting a 5% increase in 2025, even as higher raw material costs continue to put pressure on profitability.

Mondelez International’s performance highlights the impact of commodity price volatility on the food and snack sector. With cocoa cost inflation at unprecedented levels, the company’s near-term profitability remains under pressure, leading to cautious investor sentiment. As Mondelez International implements chocolate price increases and adjusts its cost structure, market watchers will be closely monitoring whether these efforts can sustain revenue growth without significantly impacting consumer demand.



In conclusion, Mondelez International’s latest earnings report underscores the challenges faced by the snack industry in the face of commodity price volatility, particularly cocoa cost inflation. As the company navigates these headwinds and implements strategic initiatives to maintain market share and profitability, investors will be closely watching its progress in the coming quarters.