Deerfield / IL. (mdlz) Mondelez International discussed the company’s strategic initiatives to deliver sustainable top- and bottom-line growth at the 2020 Consumer Analyst Group of New York (CAGNY) Conference this week. The company also reiterated its 2020 financial outlook and long-term growth targets. Chairman and Chief Executive Officer Dirk Van de Put, together with Chief Financial Officer Luca Zaramella, provided an overview of the company’s strong financial results and plans to drive long-term sales, earnings and free cash flow growth.
«In the first full year following the launch of our strategic plan, Mondelēz International delivered accelerated top-line growth, robust earnings growth and improved free cash flow generation, demonstrating the power of our portfolio and that our strategy is working,» said Van de Put. «We are a fundamentally different company now after the changes we’ve made to drive sustainable growth. Increased investments in our global and local brands and capabilities, combined with improved execution, position us for continued performance.»
Building a Consumer-Centric, Growth-Focused Organization
At the conference, Van de Put will highlight the company’s progress on building a consumer-centric, growth-focused organization and culture.
Over the past 18 months Mondelēz International has increased and rebalanced its investments in global and local brands, transitioned to a focus on volume-driven, profitable growth and moved from a centralized decision-making structure to a local-first approach with clear accountability and aligned incentives.
Local leaders are now empowered to capitalize on consumer insights, increasing the company’s agility and improving speed-to-market, with employees throughout the organization focused on generating profitable growth.
Van de Put will outline how these changes have supported increasing brand relevance with consumers, share gains in core categories and a sustainable improvement in financial results.
Van de Put will also provide an update on specific initiatives the company is executing in 2020 within each strategic focus area, as well as compelling growth opportunities the company sees ahead.
Reiterating 2020 Outlook and Long-Term Growth Targets
Mondelēz International reiterates its 2020 outlook, as well as long-term growth targets for:
- Organic Net Revenue growth of 3 percent plus;
- High-single digit Adjusted EPS growth at constant currency;
- Free Cash Flow of USD 3 billion plus; and
- Dividend growth outpacing Adjusted EPS growth.
«We are pleased with our performance in 2019, including meeting or exceeding all of our financial targets,» said Zaramella. «Going forward, we will continue to focus on driving improved free-cash flow generation, an area where we already made significant progress in 2019. Continued execution against our strategy will enable us to consistently deliver results in line with our long-term growth algorithm.»