Mondelēz International Reports Q4 and FY 2019 Results

Deerfield / IL. (mdlz) Mondelez International reported its fourth quarter and full year 2019 financial results. «2019 was a major step forward for the company: Execution of our strategy, including investments in global and local brands, enabled us to deliver strong top-line performance and to meet or exceed all of our financial targets. We are increasingly confident that our incremental investments in brands and capabilities, emphasis on volume leverage and profit dollar growth will create a virtuous cycle that consistently delivers attractive top- and bottom- line growth and sustained free cash flow generation,» said Dirk Van de Put, Chairman and CEO.

Full Year Highlights

  • Net revenues declined 0.3 percent driven by unfavorable currency impacts; Organic Net Revenue grew 4.1 percent with balanced volume/mix and pricing
  • Diluted EPS was USD 2.65, up 16 percent; Adjusted EPS was USD 2.47, up 8 percent on a constant-currency basis
  • Cash from operating activities was USD 4.0 billion, increasing USD 17 million versus prior year; Free Cash Flow was USD 3.0 billion, increasing USD 187 million versus prior year
  • Return of capital to shareholders was USD 3.0 billion

Fourth Quarter Highlights

  • Net revenues increased 2.1 percent driven by Organic Net Revenue growth of 4.1 percent partially offset by unfavorable currency impacts
  • Diluted EPS was USD 0.50, down 10.7 percent; Adjusted EPS was USD 0.61, flat on a constant-currency basis

Management Changes

Gustavo Valle joins the company as President, Latin America, effective February 1, 2020. Gustavo has more than three decades of leadership experience across Latin America, North America and Europe. In more than 20 years at Danone, he held a breadth of positions and most recently led the global dairy division, having previously delivered business turnaround and managed through volatility as CEO Brazil and CEO Argentina.

Key Strategic Initiatives

The company made strong progress against the strategies of accelerating consumer-centric growth, driving operational excellence and building a winning growth culture in 2019. Some highlights included:

  • Global Brands + Local Jewels: accelerated an already strong Global Brands growth rate and transformed the Local Jewels growth rate, now at close to category levels. Overall, strongest market share performance since inception of the company, holding or increasing share in approximately 75 percent of our revenue base2
  • Growth Markets + Channels: strong progress in fastest growing channels in developed markets including Europe discounters and biscuits in North America alternative channels; laid foundations for sustained future growth in key emerging markets like China, India and Russia
  • Everyday Executional Excellence: demonstrated best-in-class commercial execution including exceptional seasonal activation at Easter, Christmas and holidays around the world
  • Continuous Cost Improvement: delivered productivity savings across the business through cost discipline, strategic investment and operational excellence in procurement
  • Local-First Culture: created a local-first ecosystem with clearer accountability and focused incentives better aligned to the company’s growth strategy
  • Speed, Agility and Simplicity: brought innovations to market quicker through simplified processes and agile ways of working.

For additional information please refer to Mondelez International’s PDF file below (373 KB).

20200129-MONDELEZ-Q4-2019.

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