Second Quarter Highlights

Net revenues increased +17.0% driven by Organic Net Revenue¹ growth of +15.8% with strong Volume/Mix performance in 3 of 4 regions
Diluted EPS was $0.69, up 27.8%; Adjusted EPS¹ was $0.76, up +21.5% on a constant currency basis
Year-to-date cash provided by operating activities was $2.0 billion; Free Cash Flow¹ was $1.5 billion
Return of capital to shareholders was $1.7 billion in the first half of the year
Announcing +10% increase to quarterly dividend
Raising both Organic Net Revenue and Adjusted EPS growth outlook to 12%+

CHICAGO, July 27, 2023 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (NASDAQ:MDLZ) today reported its second quarter 2023 results.

"I am pleased with our second quarter results, which demonstrate broad-based strength across our business, with strong, profitable top-line growth in all regions and categories. Continuous reinvestment in our brands and capabilities, combined with ongoing price execution, cost discipline and strong volume/mix performance drove these results," said Dirk Van de Put, Chairman and Chief Executive Officer. "We continue to drive robust consumer demand in our core categories across the vast majority of our businesses, and our teams continue to make significant progress against our portfolio reshaping initiatives as we remain focused on accelerating strong, sustainable growth. Our strong first-half performance and category resilience provides confidence to raise both our net revenue and earnings outlooks for the year."

Net Revenue

$ in millions	Reported Net Revenues				Organic Net Revenue Growth
	Q2 2023		% Chg vs PY		Q2 2023		Vol/Mix		Pricing
Quarter 2
Latin America	$	1,228	40.2	%	37.7	%	2.6	pp	35.1	pp
Asia, Middle East & Africa		1,609	4.8		13.2		3.3	pp	9.9
Europe		2,926	11.4		13.1		(4.5)	pp	17.6
North America		2,744	22.7		12.4		2.0	pp	10.4
Mondelēz International	$	8,507	17.0	%	15.8	%	-	pp	15.8	pp
Emerging Markets	$	3,306	17.8	%	23.3	%	2.1	pp	21.2	pp
Developed Markets	$	5,201	16.4	%	11.2	%	(1.2)	pp	12.4	pp

June Year-to-Date	YTD 2023				YTD 2023
Latin America	$	2,439	43.3	%	38.4	%	5.0	pp	33.4	pp
Asia, Middle East & Africa		3,548	4.3		13.5		4.6	pp	8.9
Europe		6,233	12.1		16.2		(1.5)	pp	17.7
North America		5,453	24.7		14.8	%	2.1	pp	12.7
Mondelēz International	$	17,673	17.5	%	17.7	%	1.7	pp	16.0	pp
Emerging Markets	$	6,904	19.7	%	24.3	%	3.4	pp	20.9	pp
Developed Markets	$	10,769	16.2	%	13.6	%	0.7	pp	12.9	pp

Operating Income and Diluted EPS

$ in millions, except per share data	Reported					Adjusted
	Q2 2023			vs PY (Rpt Fx)		Q2 2023			vs PY (Rpt Fx)		vs PY (Cst Fx)
Quarter 2
Gross Profit	$	3,354		27.0	%	$	3,193		15.9	%	19.7	%
Gross Profit Margin		39.4	%	3.1	pp		37.5	%	(0.5)	pp
Operating Income	$	1,425		53.7	%	$	1,332		21.4	%	26.3	%
Operating Income Margin		16.8	%	4.1	pp		15.7	%	0.6	pp
Net Earnings ²	$	944		26.4	%	$	1,037		15.5	%	21.3	%
Diluted EPS	$	0.69		27.8	%	$	0.76		16.9	%	21.5	%

June Year-to-Date	YTD 2023					YTD 2023
Gross Profit	$	6,800		20.9	%	$	6,592		14.4	%	18.9	%
Gross Profit Margin		38.5	%	1.1	pp		37.3	%	(1.1)	pp
Operating Income	$	2,930		45.0	%	$	2,913		17.7	%	23.2	%
Operating Income Margin		16.6	%	3.2	pp		16.5	%	—	pp
Net Earnings	$	3,025		88.8	%	$	2,264		11.5	%	18.1	%
Diluted EPS	$	2.20		91.3	%	$	1.65		13.0	%	19.9	%

Second Quarter Commentary

Net revenues increased 17.0 percent driven by Organic Net Revenue growth of 15.8 percent, and incremental sales from the company's 2022 acquisitions of Clif Bar and Ricolino, partially offset by unfavorable currency. Pricing drove Organic Net Revenue growth as volume/mix was flat for the second quarter.

Gross profit increased $713 million, and gross profit margin increased 310 basis points to 39.4 percent primarily driven by favorable year-over-year change in mark-to-market impacts from derivatives, partially offset by a decrease in Adjusted Gross Profit¹ margin. Adjusted Gross Profit increased $542 million at constant currency, while Adjusted Gross Profit margin decreased 50 basis points to 37.5 percent due to higher raw material and transportation costs, partially offset by pricing and lower manufacturing costs driven by productivity.

Operating income increased $498 million and operating income margin was 16.8 percent, up 410 basis points primarily due to favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, higher Adjusted Operating Income margin, lower costs incurred for the Simplify to Grow program and lower acquisition integration costs and contingent consideration adjustments. These favorable items were partially offset by higher divestiture-related costs, the lapping of a prior-year decrease in estimated allowances and reserves associated with incremental costs incurred due to the war in Ukraine and a higher remeasurement loss of net monetary position. Adjusted Operating Income increased $288 million at constant currency while Adjusted Operating Income margin increased 60 basis points to 15.7 percent, driven primarily by higher net pricing, SG&A leverage, lower manufacturing cost driven by productivity and favorable product mix, partially offset by input cost inflation.

Diluted EPS was $0.69, up 27.8 percent, primarily due to favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, increase in Adjusted EPS and lower acquisition integration costs and contingent consideration adjustments, partially offset by a mark-to-market loss on marketable securities, lapping prior-year net earnings from divestitures, higher divestiture-related costs, higher remeasurement loss of net monetary position and higher loss on equity method investment transactions.

Adjusted EPS was $0.76, up 21.5 percent on a constant currency basis primarily driven by strong operating gains, fewer shares outstanding and higher equity method earnings, partially offset by higher taxes and higher interest expense.

Capital Return: The company returned $0.7 billion to shareholders in cash dividends and share repurchases. Today, the company's Board of Directors declared a quarterly cash dividend of $0.425 per share of Class A common stock, an increase of 10 percent. This dividend is payable on October 13, 2023, to shareholders of record as of September 29, 2023.

2023 Outlook

Mondelēz International provides its outlook on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including the impact of foreign exchange. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details.

For 2023, the company is updating its 2023 fiscal outlook and now expects 12+ percent Organic Net Revenue growth versus the prior outlook of 10+ percent, which reflects the strength of its year-to-date performance. The company's expectation for Adjusted EPS growth on a constant currency basis is now 12+ percent versus the prior outlook of 10+ percent. The company's Free Cash Flow outlook remains at $3.3+ billion. The company estimates currency translation would decrease 2023 net revenue growth by approximately 2 percent³ with a negative $0.11 impact to Adjusted EPS³.

Outlook is provided in the context of greater than usual volatility as a result of COVID-19 and geopolitical uncertainty.

Conference Call

Mondelēz International will host a conference call for investors with accompanying slides to review its results at 5 p.m. ET today. A listen-only webcast will be provided at www.mondelezinternational.com. An archive of the webcast will be available on the company's web site.

About Mondelēz International

Mondelēz International, Inc. (NASDAQ:MDLZ) empowers people to snack right in over 150 countries around the world. With 2022 net revenues of approximately $31 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Standard and Poor's 500, Nasdaq 100 and Dow Jones Sustainability Index.

Visit www.mondelezinternational.com or follow the company on Twitter at www.twitter.com/MDLZ.

End Notes

Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information.
Earnings attributable to Mondelēz International.
Currency estimate is based on published rates from XE.com on July 21, 2023.

Additional Definitions

Emerging markets consist of the Latin America region in its entirety; the Asia, Middle East and Africa region excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.

Developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the Asia, Middle East and Africa region.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words, and variations of words, "will," "may," "expect," "would," "could," "might," "intend," "plan," "believe," "likely," "estimate," "anticipate," "objective," "predict," "project," "drive," "seek," "aim," "target," "potential," "commitment," "outlook," "continue" or any other similar words.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results or performance to differ materially from those contained in or implied by our forward-looking statements include, but are not limited to, the following:

weakness in macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation), instability of certain financial institutions, volatility of commodity and other input costs and availability of commodities;
geopolitical uncertainty, including the impact of ongoing or new developments in the war in Ukraine, related current and future sanctions imposed by governments and other authorities and related impacts, including on our business operations, employees, reputation, brands, financial condition and results of operations;
global or regional health pandemics or epidemics;
competition and our response to channel shifts and pricing and other competitive pressures;
pricing actions and customer and consumer responses to such actions;
promotion and protection of our reputation and brand image;
weakness in consumer spending and/or changes in consumer preferences and demand and our ability to predict, identify, interpret and meet these changes;
risks from operating globally, including in emerging markets, such as political, economic and regulatory risks;
the outcome and effects on us of legal and tax proceedings and government investigations, including the European Commission legal matter;
use of information technology and third party service providers;
unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and supply, commodity, labor and transportation constraints;
our ability to identify, complete, manage and realize the full extent of the benefits, cost savings or synergies presented by strategic transactions, including our recently completed acquisitions of Ricolino, Clif Bar, Chipita, Gourmet Food, Grenade and Hu, and the anticipated closing of our planned divestiture of our developed market gum business in North America and Europe;
our investments and our ownership interests in those investments, including JDE Peet's;
the restructuring program and our other transformation initiatives not yielding the anticipated benefits;
changes in the assumptions on which the restructuring program is based;
the impact of climate change on our supply chain and operations;
consolidation of retail customers and competition with retailer and other economy brands;
changes in our relationships with customers, suppliers or distributors;
management of our workforce and shifts in labor availability or labor costs;
compliance with legal, regulatory, tax and benefit laws and related changes, claims or actions;
perceived or actual product quality issues or product recalls;
failure to maintain effective internal control over financial reporting or disclosure controls and procedures;
our ability to protect our intellectual property and intangible assets;
tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes;
changes in currency exchange rates, controls and restrictions;
volatility of and access to capital or other markets, rising interest rates, the effectiveness of our cash management programs and our liquidity;
pension costs;
significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets; and
the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent Quarterly Reports on Form 10-Q.

There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release except as required by applicable law or regulation. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.


											Schedule 1
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of U.S. dollars and shares, except per share data)
(Unaudited)

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
			2023			2022			2023			2022
Net revenues		$	8,507		$	7,274		$	17,673		$	15,038
Cost of sales			5,153			4,633			10,873			9,414
	Gross profit		3,354			2,641			6,800			5,624
	Gross profit margin		39.4%			36.3%			38.5%			37.4%

Selling, general and administrative expenses			1,869			1,676			3,724			3,369
Asset impairment and exit costs			23			6			70			170
Amortization of intangible assets			37			32			76			64
	Operating income		1,425			927			2,930			2,021
	Operating income margin		16.8%			12.7%			16.6%			13.4%

Benefit plan non-service income			(22	)		(30	)		(41	)		(63	)
Interest and other expense, net			97			98			192			266
Loss/(gain) on marketable securities			189			-			(607	)		-
	Earnings before income taxes		1,161			859			3,386			1,818

Income tax provision			(268	)		(201	)		(926	)		(411	)
	Effective tax rate		23.1%			23.4%			27.3%			22.6%
(Loss)/gain on equity method investment transactions			(23	)		(8	)		464			(13	)
Equity method investment net earnings			71			98			106			215
	Net earnings		941			748			3,030			1,609

Noncontrolling interest earnings			3			(1	)		(5	)		(7	)
	Net earnings attributable to Mondelēz International	$	944		$	747		$	3,025		$	1,602

Per share data:
	Basic earnings per share attributable to Mondelēz International	$	0.69		$	0.54		$	2.22		$	1.16

	Diluted earnings per share attributable to Mondelēz International	$	0.69		$	0.54		$	2.20		$	1.15

Average shares outstanding:
	Basic		1,364			1,382			1,365			1,385
	Diluted		1,372			1,389			1,372			1,393

					Schedule 2
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of U.S. dollars)
(Unaudited)

	June 30,		December 31,
		2023		2022
ASSETS
Cash and cash equivalents	$	1,482	$	1,923
Trade receivables		2,934		3,088
Other receivables		851		819

Mondelēz International Reports Q2 2023 Results