Mondelēz International Reports Q1 2021 Results
Mondelēz International reported a 7.9% increase in net revenues for Q1 2021, with organic growth of 3.8%. Diluted EPS rose to $0.68, a 33.3% increase, while adjusted EPS reached $0.77, up 10.6% on a constant-currency basis. Operating income improved by 49.9% to $1.283 billion, with a margin of 17.7%. The company returned $1.5 billion to shareholders. For FY 2021, Mondelēz anticipates organic net revenue growth of 3%+ and free cash flow exceeding $3 billion.
- Net revenues increased by 7.9%, reaching $7.238 billion.
- Diluted EPS rose to $0.68, up 33.3% year-over-year.
- Operating income increased by 49.9% to $1.283 billion.
- Return of capital to shareholders totaled $1.5 billion.
- Organic net revenue growth was partially offset by unfavorable mix effects.
- Higher raw material costs and increased advertising expenses were reported.
First Quarter Highlights
- Net revenues increased
7.9% driven by Organic Net Revenue1 growth of3.8% , favorable currency and acquisitions - Diluted EPS was
$0.68 , up33.3% ; Adjusted EPS1 was$0.77 , up10.6% on a constant-currency basis - Cash provided by operating activities was
$915 million ; Free Cash Flow1 was$699 million - Return of capital to shareholders was
$1.5 billion
CHICAGO, April 27, 2021 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (Nasdaq: MDLZ) today reported its first quarter 2021 results.
"Our first quarter results demonstrate that we are emerging from the COVID-19 pandemic stronger, as we continue to build upon our track record of robust growth, profitability and cash generation," said Dirk Van de Put, Chairman and Chief Executive Officer. "We saw continued improvement across emerging markets, healthy demand in developed markets and another quarter of strong share performance. We remain squarely focused on accelerating growth by further strengthening our core brand and expanding our presence in high-growth channels, categories and adjacencies. Our strategy is working, and our business is better positioned than ever before.”
Net Revenue
| $ in millions | Reported Net Revenues | Organic Net Revenue Growth | |||||||||||||
| Q1 2021 | % Chg vs PY | Q1 2021 | Vol/Mix | Pricing | |||||||||||
| Quarter 1 | |||||||||||||||
| Latin America | $ | 669 | (7.9 | )% | 7.2 | % | (2.9) pp | 10.1 | pp | ||||||
| Asia, Middle East & Africa | 1,745 | 16.2 | 10.8 | 7.9 pp | 2.9 | ||||||||||
| Europe | 2,847 | 10.2 | 3.3 | 2.4 pp | 0.9 | ||||||||||
| North America | 1,977 | 4.3 | (2.3 | ) | (2.8) pp | 0.5 | |||||||||
| Mondelēz International | $ | 7,238 | 7.9 | % | 3.8 | % | 1.5 pp | 2.3 | pp | ||||||
| Emerging Markets | $ | 2,563 | 6.0 | % | 9.9 | % | 4.7 pp | 5.2 | pp | ||||||
| Developed Markets | $ | 4,675 | 9.0 | % | 0.4 | % | (0.2) pp | 0.6 | pp | ||||||
Operating Income and Diluted EPS
| $ in millions, except per share data | Reported | Adjusted | |||||||||||||||||||
| Q1 2021 | vs PY (Rpt Fx) | Q1 2021 | vs PY (Rpt Fx) | vs PY (Cst Fx) | |||||||||||||||||
| Quarter 1 | |||||||||||||||||||||
| Gross Profit | $ | 2,966 | 21.0 | % | $ | 2,866 | 7.9 | % | 5.0 | % | |||||||||||
| Gross Profit Margin | 41.0 | % | 4.5 | pp | 39.6 | % | — | pp | |||||||||||||
| Operating Income | $ | 1,283 | 49.9 | % | $ | 1,292 | 16.8 | % | 12.8 | % | |||||||||||
| Operating Income Margin | 17.7 | % | 4.9 | pp | 17.9 | % | 1.4 | pp | |||||||||||||
| Net Earnings2 | $ | 961 | 30.6 | % | $ | 1,090 | 15.0 | % | 10.0 | % | |||||||||||
| Diluted EPS | $ | 0.68 | 33.3 | % | $ | 0.77 | 16.7 | % | 10.6 | % | |||||||||||
First Quarter Commentary
- Net revenues increased 7.9 percent driven by Organic Net Revenue growth of 3.8 percent, favorable currency, and incremental sales from the company's acquisitions of Give & Go and Hu. Volume and pricing drove Organic Net Revenue growth, partially offset by unfavorable mix.
- Gross profit increased
$515 million , while gross profit margin increased 450 basis points to 41.0 percent, primarily driven by favorable year-over-year change in mark-to-market gains/losses from currency and commodity derivatives. Adjusted Gross Profit1 increased$134 million at constant currency, while Adjusted Gross Profit margin remained flat at 39.6 percent due to higher raw material costs and unfavorable product mix, offset by higher pricing and manufacturing productivity. - Operating income increased
$427 million and operating income margin was 17.7 percent, up 490 basis points primarily due to favorable year-over-year change in mark-to-market gains/losses from currency and commodity derivatives and higher Adjusted Operating Income1, partially offset by higher restructuring expenses. Adjusted Operating Income increased$142 million at constant currency, and Adjusted Operating Income margin increased 140 basis points to 17.9 percent primarily driven by lower overhead costs, partially offset by increased advertising and consumer promotions spend. - Diluted EPS was
$0.68 , up 33.3 percent, primarily due to mark-to-market gains from derivatives versus losses in the prior year, lapping the prior-year loss on interest rate swaps and an increase in Adjusted EPS, partially offset by a loss on debt extinguishment, higher Simplify to Grow program costs and lapping the prior-year gain on equity method investment transactions. - Adjusted EPS was
$0.77 , up 10.6 percent on a constant-currency basis driven by operating gains and share repurchases, partially offset by lower equity method investment earnings and higher taxes primarily due to changes in the company's mix of earnings. - Capital Return: The company returned
$1.5 billion to shareholders in cash dividends and share repurchases.
2021 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.
| Metric | FY 2021 Outlook | |
| Organic Net Revenue Growth | ||
| Adjusted EPS Growth (at cst FX) | High single-digit | |
| Free Cash Flow |
The company estimates currency translation would increase 2021 net revenue growth by approximately 2 percent3 with a positive
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. The company will be live tweeting the event at www.twitter.com/MDLZ.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2020 net revenues of approximately
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 April 21, 2021.
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, Turkey, 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 a number of forward-looking statements. Words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “estimate,” “outlook” and similar expressions are intended to identify the company’s forward-looking statements, including, but not limited to, statements about: the impact of and volatility resulting from the COVID-19 pandemic; the company’s strategy and the prospects for the business; the company’s future performance, including its future revenue growth, earnings per share and cash flow; currency and the effect of currency translation on the company’s results of operations; the company’s long-term algorithm; and the company’s outlook, including 2021 Organic Net Revenue growth, Adjusted EPS growth and Free Cash Flow. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the company’s control, and many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic. Important factors that could cause the company’s actual results to differ materially from those indicated in the company’s forward-looking statements include, but are not limited to, uncertainty about the magnitude, duration, geographic reach, impact on the global economy and related current and potential travel restrictions of the COVID-19 pandemic; the current, and uncertain future, impact of the COVID-19 pandemic on the company’s business, growth, reputation, prospects, financial condition, operating results (including components of the company’s financial results), cash flows and liquidity; risks from operating globally including in emerging markets; changes in currency exchange rates, controls and restrictions; volatility of commodity and other input costs; weakness in economic conditions; weakness in consumer spending; pricing actions; tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes; use of information technology and third party service providers; unanticipated disruptions to the company’s business, such as the malware incident, cyberattacks or other security breaches; global or regional health pandemics or epidemics, including COVID-19; competition; protection of the company’s reputation and brand image; changes in consumer preferences and demand and the company’s ability to innovate and differentiate its products; the restructuring program and the company’s other transformation initiatives not yielding the anticipated benefits; changes in the assumptions on which the restructuring program is based; management of the company’s workforce; consolidation of retail customers and competition with retailer and other economy brands; changes in the company’s relationships with customers, suppliers or distributors; legal, regulatory, tax or benefit law changes, claims or actions; the impact of climate change on the company’s supply chain and operations; strategic transactions; significant changes in valuation factors that may adversely affect the company’s impairment testing of goodwill and intangible assets; perceived or actual product quality issues or product recalls; failure to maintain effective internal control over financial reporting; volatility of and access to capital or other markets and the company's liquidity; pension costs; the expected discontinuance of London Interbank Offered Rates and transition to any other interest rate benchmark; and the company’s ability to protect its intellectual property and intangible assets. Please also see the company’s risk factors, as they may be amended from time to time, set forth in its filings with the SEC, including the company’s most recently filed Annual Report on Form 10-K. Mondelēz International disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.
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 March 31, | |||||||
| 2021 | 2020 | ||||||
| Net revenues | $ | 7,238 | $ | 6,707 | |||
| Cost of sales | 4,272 | 4,256 | |||||
| Gross profit | 2,966 | 2,451 | |||||
| Gross profit margin | 41.0 | % | 36.5 | % | |||
| Selling, general and administrative expenses | 1,564 | 1,537 | |||||
| Asset impairment and exit costs | 90 | 15 | |||||
| Gain on acquisition | (9 | ) | - | ||||
| Amortization of intangible assets | 38 | 43 | |||||
| Operating income | 1,283 | 856 | |||||
| Operating income margin | 17.7 | % | 12.8 | % | |||
| Benefit plan non-service income | (44 | ) | (33 | ) | |||
| Interest and other expense, net | 218 | 190 | |||||
| Earnings before income taxes | 1,109 | 699 | |||||
| Income tax provision | (212 | ) | (148 | ) | |||
| Effective tax rate | 19.1 | % | 21.2 | % | |||
| (Loss)/gain on equity method investment transactions | (7 | ) | 71 | ||||
| Equity method investment net earnings | 78 | 121 | |||||
| Net earnings | 968 | 743 | |||||
| Noncontrolling interest earnings | (7 | ) | (7 | ) | |||
| Net earnings attributable to Mondelēz International | $ | 961 | $ | 736 | |||
| Per share data: | |||||||
| Basic earnings per share attributable to Mondelēz International | $ | 0.68 | $ | 0.51 | |||
| Diluted earnings per share attributable to Mondelēz International | $ | 0.68 | $ | 0.51 | |||
| Average shares outstanding: | |||||||
| Basic | 1,412 | 1,434 | |||||
| Diluted | 1,422 | 1,445 | |||||
Schedule 2
| Mondelēz International, Inc. and Subsidiaries | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| (in millions of U.S. dollars) | |||||||||||
| (Unaudited) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2021 | 2020 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 2,028 | $ | 3,619 | |||||||
| Trade receivables | 2,655 | 2,297 | |||||||||
| Other receivables | 660 | 657 | |||||||||
| Inventories, net | 2,635 | 2,647 | |||||||||
| Other current assets | 865 | 759 | |||||||||
| Total current assets | 8,843 | 9,979 | |||||||||
| Property, plant and equipment, net | 8,766 | 9,026 | |||||||||
| Operating lease right of use assets | 609 | 638 | |||||||||
| Goodwill | 21,945 | 21,895 | |||||||||
| Intangible assets, net | 18,527 | 18,482 | |||||||||
| Prepaid pension assets | 742 | 672 | |||||||||
| Deferred income taxes | 725 | 790 | |||||||||
| Equity method investments | 5,916 | 6,036 | |||||||||
| Other assets | 276 | 292 | |||||||||
| TOTAL ASSETS | $ | 66,349 | $ | 67,810 | |||||||
| LIABILITIES | |||||||||||
| Short-term borrowings | $ | 674 | $ | 29 | |||||||
| Current portion of long-term debt | 1,895 | 2,741 | |||||||||
| Accounts payable | 6,372 | 6,209 | |||||||||
| Accrued marketing | 2,136 | 2,130 | |||||||||
| Accrued employment costs | 670 | 834 | |||||||||
| Other current liabilities | 2,803 | 3,216 | |||||||||
| Total current liabilities | 14,550 | 15,159 | |||||||||
| Long-term debt | 16,961 | 17,276 | |||||||||
| Long-term operating lease liabilities | 447 | 470 | |||||||||
| Deferred income taxes | 3,353 | 3,346 | |||||||||
| Accrued pension costs | 1,161 | 1,257 | |||||||||
| Accrued postretirement health care costs | 345 | 346 | |||||||||
| Other liabilities | 2,383 | 2,302 | |||||||||
| TOTAL LIABILITIES | 39,200 | 40,156 | |||||||||
| EQUITY | |||||||||||
| Common Stock | - | - | |||||||||
| Additional paid-in capital | 32,009 | 32,070 | |||||||||
| Retained earnings | 28,903 | 28,402 | |||||||||
| Accumulated other comprehensive losses | (10,746 | ) | (10,690 | ) | |||||||
| Treasury stock | (23,091 | ) | (22,204 | ) | |||||||
| Total Mondelēz International Shareholders' Equity | 27,075 | 27,578 | |||||||||
| Noncontrolling interest | 74 | 76 | |||||||||
| TOTAL EQUITY | 27,149 | 27,654 | |||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 66,349 | $ | 67,810 | |||||||
| March 31, | December 31, | ||||||||||
| 2021 | 2020 | Incr/(Decr) | |||||||||
| Short-term borrowings | $ | 674 | $ | 29 | $ | 645 | |||||
| Current portion of long-term debt | 1,895 | 2,741 | (846 | ) | |||||||
| Long-term debt | 16,961 | 17,276 | (315 | ) | |||||||
| Total Debt | 19,530 | 20,046 | (516 | ) | |||||||
| Cash and cash equivalents | 2,028 | 3,619 | (1,591 | ) | |||||||
| Net Debt (1) | $ | 17,502 | $ | 16,427 | $ | 1,075 | |||||
| (1) Net debt is defined as total debt, which includes short-term borrowings, current portion of long-term debt and long-term debt, less cash and cash equivalents. | |||||||||||
Schedule 3
| Mondelēz International, Inc. and Subsidiaries | |||||||
| Condensed Consolidated Statements of Cash Flows | |||||||
| (in millions of U.S. dollars) | |||||||
| (Unaudited) | |||||||
| For the Three Months Ended March 31, | |||||||
| 2021 | 2020 | ||||||
| CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | |||||||
| Net earnings | $ | 968 | $ | 743 | |||
| Adjustments to reconcile net earnings to operating cash flows: | |||||||
| Depreciation and amortization | 284 | 256 | |||||
| Stock-based compensation expense | 25 | 28 | |||||
| Deferred income tax provision/(benefit) | 34 | (26 | ) | ||||
| Asset impairments and accelerated depreciation | 43 | - | |||||
| Loss on early extinguishment of debt | 110 | - | |||||
| Gain on acquisition | (9 | ) | - | ||||
| Loss/(gain) on equity method investment transactions | 7 | (71 | ) | ||||
| Equity method investment net earnings | (78 | ) | (121 | ) | |||
| Distributions from equity method investments | 74 | 165 | |||||
| Other non-cash items, net | (23 | ) | 126 | ||||
| Change in assets and liabilities, net of acquisitions: | |||||||
| Receivables, net | (494 | ) | (610 | ) | |||
| Inventories, net | (37 | ) | (48 | ) | |||
| Accounts payable | 283 | 206 | |||||
| Other current assets | (140 | ) | (217 | ) | |||
| Other current liabilities | (55 | ) | (71 | ) | |||
| Change in pension and postretirement assets and liabilities, net | (77 | ) | (76 | ) | |||
| Net cash provided by/(used in) operating activities | 915 | 284 | |||||
| CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | |||||||
| Capital expenditures | (216 | ) | (214 | ) | |||
| Acquisitions, net of cash received | (490 | ) | - | ||||
| Proceeds from divestitures including equity method investments | - | 185 | |||||
| Other | 16 | (26 | ) | ||||
| Net cash provided by/(used in) investing activities | (690 | ) | (55 | ) | |||
| CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | |||||||
| Issuances of commercial paper, maturities greater than 90 days | - | 157 | |||||
| Repayments of commercial paper, maturities greater than 90 days | - | (497 | ) | ||||
| Net issuances of other short-term borrowings | 647 | 2,477 | |||||
| Long-term debt proceeds | 2,373 | - | |||||
| Long-term debt repaid | (3,353 | ) | (670 | ) | |||
| Repurchase of Common Stock | (1,046 | ) | (720 | ) | |||
| Dividends paid | (453 | ) | (409 | ) | |||
| Other | 51 | 117 | |||||
| Net cash provided by/(used in) financing activities | (1,781 | ) | 455 | ||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (35 | ) | (60 | ) | |||
| Cash, Cash Equivalents and Restricted Cash | |||||||
| (Decrease) / increase | (1,591 | ) | 624 | ||||
| Balance at beginning of period | 3,650 | 1,328 | |||||
| Balance at end of period | $ | 2,059 | $ | 1,952 | |||
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Financial Measures
(Unaudited)
The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). However, management believes that also presenting certain non-GAAP financial measures provides additional information to facilitate the comparison of the company’s historical operating results and trends in its underlying operating results, and provides additional transparency on how the company evaluates its business. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the company’s performance. The company also believes that presenting these measures allows investors to view its performance using the same measures that the company uses in evaluating its financial and business performance and trends.
The company considers quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of its ongoing financial and business performance and trends. The adjustments generally fall within the following categories: acquisition & divestiture activities, gains and losses on intangible asset sales and non-cash impairments, major program restructuring activities, constant currency and related adjustments, major program financing and hedging activities and other major items affecting comparability of operating results. See below for a description of adjustments to the company’s U.S. GAAP financial measures included herein.
Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, the company’s non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.
DEFINITIONS OF THE COMPANY’S NON-GAAP FINANCIAL MEASURES
The company’s non-GAAP financial measures and corresponding metrics reflect how the company evaluates its operating results currently and provide improved comparability of operating results. As new events or circumstances arise, these definitions could change. When these definitions change, the company provides the updated definitions and presents the related non-GAAP historical results on a comparable basis. When items no longer impact the company’s current or future presentation of non-GAAP operating results, the company removes these items from its non-GAAP definitions.
- “Organic Net Revenue” is defined as net revenues excluding the impacts of acquisitions, divestitures and currency rate fluctuations. The company also evaluates Organic Net Revenue growth from emerging markets and developed markets.
- “Adjusted Gross Profit” is defined as gross profit excluding the impacts of the Simplify to Grow Program; acquisition integration costs; the operating results of divestitures; and mark-to-market impacts from commodity and forecasted currency transaction derivative contracts. The company also presents “Adjusted Gross Profit margin,” which is subject to the same adjustments as Adjusted Gross Profit. The company also evaluates growth in the company’s Adjusted Gross Profit on a constant currency basis.
- “Adjusted Operating Income” and “Adjusted Segment Operating Income” are defined as operating income (or segment operating income) excluding the impacts of the items listed in the Adjusted Gross Profit definition as well as gains or losses (including non-cash impairment charges) on goodwill and intangible assets; divestiture or acquisition gains or losses and related divestiture, acquisition and integration costs; costs associated with the JDE Peet's transaction; remeasurement of net monetary position; impacts from resolution of tax matters; CEO transition remuneration; Swiss tax reform impacts; and impact from pension participation changes. The company also presents “Adjusted Operating Income margin” and “Adjusted Segment Operating Income margin,” which are subject to the same adjustments as Adjusted Operating Income and Adjusted Segment Operating Income. The company also evaluates growth in the company’s Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis.
- “Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International from continuing operations excluding the impacts of the items listed in the Adjusted Operating Income definition, as well as losses on debt extinguishment and related expenses; gains or losses on equity method investment transactions; net earnings from divestitures; gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans; and U.S. and Swiss tax reform impacts. Similarly, within Adjusted EPS, the company’s equity method investment net earnings exclude its proportionate share of its investees’ significant operating and non-operating items. The tax impact of each of the items excluded from the company’s GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. The company also evaluates growth in the company’s Adjusted EPS on a constant currency basis.
- “Free Cash Flow” is defined as net cash provided by operating activities less capital expenditures. Free Cash Flow is the company’s primary measure used to monitor its cash flow performance.
See the attached schedules for supplemental financial data and corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures for the three months and year ended December 31, 2020 and December 31, 2019. See Items Impacting Comparability of Operating Results below for more information about the items referenced in these definitions that specifically impacted the company’s results.
SEGMENT OPERATING INCOME
The company uses segment operating income to evaluate segment performance and allocate resources. The company believes it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. The company excludes these items from segment operating income in order to provide better transparency of its segment operating results. Furthermore, the company centrally manages benefit plan non-service income and interest and other expense, net. Accordingly, the company does not present these items by segment because they are excluded from the segment profitability measure that management reviews.
ITEMS IMPACTING COMPARABILITY OF OPERATING RESULTS
The following information is provided to give qualitative and quantitative information related to items impacting comparability of operating results. The company identifies these based on how management views the company’s business; makes financial, operating and planning decisions; and evaluates the company’s ongoing performance. In addition, the company discloses the impact of changes in currency exchange rates on the company’s financial results in order to reflect results on a constant currency basis.
Divestitures, Divestiture-related costs and Gains/(losses) on divestitures
Divestitures include completed sales of businesses (including the partial or full sale of an equity method investment - discussed separately below under the gains and losses on equity method investment transactions section) and exits of major product lines upon completion of a sale or licensing agreement. As the company records its share of KDP and JDE Peet’s ongoing earnings on a one-quarter lag basis, any KDP or JDE Peet’s ownership reductions are reflected as divestitures within the company's non-GAAP results the following quarter.
- The company's non-GAAP results include the impacts from last-year's partial sales of its equity method investments in KDP and JDE Peet’s as if the sales occurred at the beginning of all periods presented. See the section on gains/losses on equity method transactions below for more information.
Acquisitions, Acquisition-related costs and Acquisition integration costs
On April 1, 2021, the company acquired Gourmet Food Holdings Pty Ltd, a leading Australian food company in the premium biscuit and cracker category. The company incurred acquisition-related costs of
On March 25, 2021, the company acquired a majority interest in Lion/Gemstone Topco Ltd ("Grenade"), a performance nutrition leader in the United Kingdom. The acquisition of Grenade expands the company's position into the premium nutrition market. The company incurred acquisition-related costs of
On January 4, 2021, the company acquired the remaining
On April 1, 2020, the company acquired a majority interest in Give & Go, a North American leader in fully-finished sweet baked goods and owner of the famous two-bite® brand of brownies and the Create-A-Treat® brand, known for cookie and gingerbread house decorating kits. The acquisition of Give & Go provides access to the in-store bakery channel and expands the company's position in broader snacking. The acquisition added incremental net revenues of
Simplify to Grow Program
The primary objective of the Simplify to Grow Program is to reduce the company’s operating cost structure in both its supply chain and overhead costs. The program covers severance as well as asset disposals and other manufacturing and procurement-related one-time costs.
Restructuring costs
The company recorded restructuring charges of
Implementation costs
Implementation costs primarily relate to reorganizing the company’s operations and facilities in connection with its supply chain reinvention program and other identified productivity and cost saving initiatives. The costs include incremental expenses related to the closure of facilities, costs to terminate certain contracts and the simplification of the company’s information systems. The company recorded implementation costs of
Mark-to-market impacts from commodity and currency derivative contracts
The company excludes unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency transaction derivatives from its non-GAAP earnings measures until such time that the related exposures impact its operating results. The company recorded net unrealized gains on commodity and forecasted currency transaction derivatives of
Remeasurement of net monetary position
During the second quarter of 2018, primarily based on published estimates which indicated that Argentina's three-year cumulative inflation rate exceeded
Impact from pension participation changes
The impact from pension participation changes represent the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation. The company excludes these charges from its non-GAAP results because those amounts do not reflect the company’s ongoing pension obligations.
On July 11, 2019, the company received an undiscounted withdrawal liability assessment related to the company's complete withdrawal from the Bakery and Confectionery Union and Industry International Pension Fund totaling
Loss on debt extinguishment and related expenses
On March 31, 2021, the company completed an early redemption of Euro (
Loss related to interest rate swaps
Within interest and other expense, net, the company recognized a loss related to forward-starting interest rate swaps of
Gains and losses on equity method investment transactions
Keurig Dr Pepper Transactions:
On March 4, 2020, the company participated in a secondary offering of KDP shares and sold approximately 6.8 million shares, which reduced its ownership interest by
JDE Peet’s Transaction:
In May 2020, JDE Peet’s B.V. (renamed JDE Peet’s N.V. immediately prior to Settlement (as defined below), “JDE Peet’s”) consummated the offering, listing and trading of its ordinary shares on Euronext Amsterdam, a regulated market operated by Euronext Amsterdam N.V. (the “admission”). In connection with this transaction, JDE Peet’s and the selling shareholders, including the company, agreed to sell at a price of
Prior to Settlement, the company exchanged its
In connection with this transaction, during the second quarter of 2020, the company changed its accounting principle to reflect its share of JDE’s historical and JDE Peet’s ongoing earnings on a one-quarter lag basis, although the company continues to record dividends when cash is received. The company determined a lag was preferable as it enables the company to continue to report its quarterly and annual results on a timely basis, while recording its share of JDE Peet’s ongoing results after JDE Peet’s has publicly reported its results. This change in accounting principle was applied retrospectively to all periods. In addition, the company considers the
Equity method investee items
Within Adjusted EPS, the company’s equity method investment net earnings exclude its proportionate share of its equity method investees’ significant operating and non-operating items, such as acquisition and divestiture-related costs and restructuring program costs.
Constant currency
Management evaluates the operating performance of the company and its international subsidiaries on a constant currency basis. The company determines its constant currency operating results by dividing or multiplying, as appropriate, the current period local currency operating results by the currency exchange rates used to translate the company’s financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.
OUTLOOK
The company’s outlook for 2021 Organic Net Revenue growth, Adjusted EPS growth on a constant currency basis and Free Cash Flow are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results such as the impact of changes in currency exchange rates, restructuring activities, acquisitions and divestitures. The company is not able to reconcile its projected Organic Net Revenue growth to its projected reported net revenue growth for the full-year 2021 because the company is unable to predict during this period the impact from potential acquisitions or divestitures, as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company’s operations are outside the U.S. The company is not able to reconcile its projected Adjusted EPS growth on a constant currency basis to its projected reported diluted EPS growth for the full-year 2021 because the company is unable to predict during this period the timing of its restructuring program costs, mark-to-market impacts from commodity and forecasted currency transaction derivative contracts and impacts from potential acquisitions or divestitures as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company’s operations are outside the U.S. The company is not able to reconcile its projected Free Cash Flow to its projected net cash from operating activities for the full-year 2021 because the company is unable to predict during this period the timing and amount of capital expenditures impacting cash flow. Therefore, because of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, the company is unable to provide a reconciliation of these measures without unreasonable effort.
Schedule 4a
| Mondelēz International, Inc. and Subsidiaries | |||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||||||
| Net Revenues | |||||||||||||||||||
| (in millions of U.S. dollars) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Latin America | AMEA | Europe | North America | Mondelēz International | |||||||||||||||
| For the Three Months Ended March 31, 2021 | |||||||||||||||||||
| Reported (GAAP) | $ | 669 | $ | 1,745 | $ | 2,847 | $ | 1,977 | $ | 7,238 | |||||||||
| Acquisitions | - | - | - | (114 | ) | (114 | ) | ||||||||||||
| Currency | 109 | (81 | ) | (177 | ) | (11 | ) | (160 | ) | ||||||||||
| Organic (Non-GAAP) | $ | 778 | $ | 1,664 | $ | 2,670 | $ | 1,852 | $ | 6,964 | |||||||||
| For the Three Months Ended March 31, 2020 | |||||||||||||||||||
| Reported (GAAP) | $ | 726 | $ | 1,502 | $ | 2,584 | $ | 1,895 | $ | 6,707 | |||||||||
| Divestitures | - | - | - | - | - | ||||||||||||||
| Organic (Non-GAAP) | $ | 726 | $ | 1,502 | $ | 2,584 | $ | 1,895 | $ | 6,707 | |||||||||
| % Change | |||||||||||||||||||
| Reported (GAAP) | (7.9 | )% | 16.2 | % | 10.2 | % | 4.3 | % | 7.9 | % | |||||||||
| Divestitures | - | pp | - | pp | - | pp | - | pp | - | pp | |||||||||
| Acquisitions | - | - | - | (6.0 | ) | (1.7 | ) | ||||||||||||
| Currency | 15.1 | (5.4 | ) | (6.9 | ) | (0.6 | ) | (2.4 | ) | ||||||||||
| Organic (Non-GAAP) | 7.2 | % | 10.8 | % | 3.3 | % | (2.3 | )% | 3.8 | % | |||||||||
| Vol/Mix | (2.9) | pp | 7.9 | pp | 2.4 | pp | (2.8) | pp | 1.5 | pp | |||||||||
| Pricing | 10.1 | 2.9 | 0.9 | 0.5 | 2.3 | ||||||||||||||
Schedule 4b
| Mondelēz International, Inc. and Subsidiaries | |||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | |||||||||||
| Net Revenues - Markets | |||||||||||
| (in millions of U.S. dollars) | |||||||||||
| (Unaudited) | |||||||||||
| Emerging Markets | Developed Markets | Mondelēz International | |||||||||
| For the Three Months Ended March 31, 2021 | |||||||||||
| Reported (GAAP) | $ | 2,563 | $ | 4,675 | $ | 7,238 | |||||
| Acquisitions | - | (114 | ) | (114 | ) | ||||||
| Currency | 94 | (254 | ) | (160 | ) | ||||||
| Organic (Non-GAAP) | $ | 2,657 | $ | 4,307 | $ | 6,964 | |||||
| For the Three Months Ended March 31, 2020 | |||||||||||
| Reported (GAAP) | $ | 2,417 | $ | 4,290 | $ | 6,707 | |||||
| Divestitures | - | - | - | ||||||||
| Organic (Non-GAAP) | $ | 2,417 | $ | 4,290 | $ | 6,707 | |||||
| % Change | |||||||||||
| Reported (GAAP) | 6.0 | % | 9.0 | % | 7.9 | % | |||||
| Divestitures | - | pp | - | pp | - | pp | |||||
| Acquisitions | - | (2.7 | ) | (1.7 | ) | ||||||
| Currency | 3.9 | (5.9 | ) | (2.4 | ) | ||||||
| Organic (Non-GAAP) | 9.9 | % | 0.4 | % | 3.8 | % | |||||
| Vol/Mix | 4.7 | pp | (0.2) | pp | 1.5 | pp | |||||
| Pricing | 5.2 | 0.6 | 2.3 | ||||||||
Schedule 5
| Mondelēz International, Inc. and Subsidiaries | ||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | ||||||||||||||||
| Gross Profit / Operating Income | ||||||||||||||||
| (in millions of U.S. dollars) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| For the Three Months Ended March 31, 2021 | ||||||||||||||||
| Net Revenues | Gross Profit | Gross Profit Margin | Operating Income | Operating Income Margin | ||||||||||||
| Reported (GAAP) | $ | 7,238 | $ | 2,966 | 41.0 | % | $ | 1,283 | 17.7 | % | ||||||
| Simplify to Grow Program | - | 15 | 122 | |||||||||||||
| Mark-to-market (gains)/losses from derivatives | - | (116 | ) | (118 | ) | |||||||||||
| Acquisition integration costs | - | - | 1 | |||||||||||||
| Acquisition-related costs | - | - | 7 | |||||||||||||
| Gain on acquisition | - | - | (9 | ) | ||||||||||||
| Remeasurement of net monetary position | - | - | 5 | |||||||||||||
| Impact from pension participation changes | - | 1 | 1 | |||||||||||||
| Adjusted (Non-GAAP) | $ | 7,238 | $ | 2,866 | 39.6 | % | $ | 1,292 | 17.9 | % | ||||||
| Currency | (76 | ) | (44 | ) | ||||||||||||
| Adjusted @ Constant FX (Non-GAAP) | $ | 2,790 | $ | 1,248 | ||||||||||||
| For the Three Months Ended March 31, 2020 | ||||||||||||||||
| Net Revenues | Gross Profit | Gross Profit Margin | Operating Income | Operating Income Margin | ||||||||||||
| Reported (GAAP) | $ | 6,707 | $ | 2,451 | 36.5 | % | $ | 856 | 12.8 | % | ||||||
| Simplify to Grow Program | - | 19 | 58 | |||||||||||||
| Mark-to-market (gains)/losses from derivatives | - | 186 | 185 | |||||||||||||
| Acquisition-related costs | - | - | 5 | |||||||||||||
| Remeasurement of net monetary position | - | - | 2 | |||||||||||||
| Adjusted (Non-GAAP) | $ | 6,707 | $ | 2,656 | 39.6 | % | $ | 1,106 | 16.5 | % | ||||||
| Gross Profit | Operating Income | |||||||||||||||
| $ Change - Reported (GAAP) | $ | 515 | $ | 427 | ||||||||||||
| $ Change - Adjusted (Non-GAAP) | 210 | 186 | ||||||||||||||
| $ Change - Adjusted @ Constant FX (Non-GAAP) | 134 | 142 | ||||||||||||||
| % Change - Reported (GAAP) | 21.0 | % | 49.9 | % | ||||||||||||
| % Change - Adjusted (Non-GAAP) | 7.9 | % | 16.8 | % | ||||||||||||
| % Change - Adjusted @ Constant FX (Non-GAAP) | 5.0 | % | 12.8 | % | ||||||||||||
Schedule 6
| Mondelēz International, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||||||||||||||||||||||||||||
| Net Earnings and Tax Rate | |||||||||||||||||||||||||||||||||||||||||
| (in millions of U.S. dollars and shares, except per share data) | |||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
| Operating Income | Benefit plan non-service expense / (income) | Interest and other expense, net | Earnings before income taxes | Income taxes (1) | Effective tax rate | Loss on equity method investment transactions | Equity method investment net losses / (earnings) | Non-controlling interest earnings | Net Earnings attributable to Mondelēz International | Diluted EPS attributable to Mondelēz International | |||||||||||||||||||||||||||||||
| Reported (GAAP) | $ | 1,283 | $ | (44 | ) | $ | 218 | $ | 1,109 | $ | 212 | 19.1 | % | $ | 7 | $ | (78 | ) | $ | 7 | $ | 961 | $ | 0.68 | |||||||||||||||||
| Simplify to Grow Program | 122 | - | - | 122 | 31 | - | - | - | 91 | 0.07 | |||||||||||||||||||||||||||||||
| Mark-to-market (gains)/losses from derivatives | (118 | ) | - | (1 | ) | (117 | ) | (22 | ) | - | - | - | (95 | ) | (0.07 | ) | |||||||||||||||||||||||||
| Acquisition integration costs | 1 | - | - | 1 | - | - | - | - | 1 | - | |||||||||||||||||||||||||||||||
| Acquisition-related costs | 7 | - | - | 7 | 1 | - | - | - | 6 | 0.01 | |||||||||||||||||||||||||||||||
| Gain on acquisition | (9 | ) | - | - | (9 | ) | (2 | ) | - | - | - | (7 | ) | - | |||||||||||||||||||||||||||
| Remeasurement of net monetary position | 5 | - | - | 5 | - | - | - | - | 5 | - | |||||||||||||||||||||||||||||||
| Impact from pension participation changes | 1 | - | (3 | ) | 4 | 1 | - | - | - | 3 | - | ||||||||||||||||||||||||||||||
| Loss on debt extinguishment and related expenses | - | - | (137 | ) | 137 | 34 | - | - | - | 103 | 0.07 | ||||||||||||||||||||||||||||||
| Loss on equity method investment transactions | - | - | - | - | - | (7 | ) | - | - | 7 | - | ||||||||||||||||||||||||||||||
| Equity method investee items | - | - | - | - | 1 | - | (16 | ) | - | 15 | 0.01 | ||||||||||||||||||||||||||||||
| Adjusted (Non-GAAP) | $ | 1,292 | $ | (44 | ) | $ | 77 | $ | 1,259 | $ | 256 | 20.3 | % | $ | - | $ | (94 | ) | $ | 7 | $ | 1,090 | $ | 0.77 | |||||||||||||||||
| Currency | (47 | ) | (0.04 | ) | |||||||||||||||||||||||||||||||||||||
| Adjusted @ Constant FX (Non-GAAP) | $ | 1,043 | $ | 0.73 | |||||||||||||||||||||||||||||||||||||
| Diluted Average Shares Outstanding | 1,422 | ||||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
| Operating Income | Benefit plan non-service expense / (income) | Interest and other expense, net | Earnings before income taxes | Income taxes (1) | Effective tax rate | Gain on equity method investment transactions | Equity method investment net losses / (earnings) | Non-controlling interest earnings | Net Earnings attributable to Mondelēz International | Diluted EPS attributable to Mondelēz International | |||||||||||||||||||||||||||||||
| Reported (GAAP) | $ | 856 | $ | (33 | ) | $ | 190 | $ | 699 | $ | 148 | 21.2 | % | $ | (71 | ) | $ | (121 | ) | $ | 7 | $ | 736 | $ | 0.51 | ||||||||||||||||
| Simplify to Grow Program | 58 | - | - | 58 | 13 | - | - | - | 45 | 0.03 | |||||||||||||||||||||||||||||||
| Mark-to-market (gains)/losses from derivatives | 185 | - | 1 | 184 | 32 | - | - | - | 152 | 0.11 | |||||||||||||||||||||||||||||||
| Acquisition-related costs | 5 | - | - | 5 | 1 | - | - | - | 4 | - | |||||||||||||||||||||||||||||||
| Net earnings from divestitures | - | - | - | - | (5 | ) | - | 28 | - | (23 | ) | (0.01 | ) | ||||||||||||||||||||||||||||
| Remeasurement of net monetary position | 2 | - | - | 2 | - | - | - | - | 2 | - | |||||||||||||||||||||||||||||||
| Impact from pension participation changes | - | - | (3 | ) | 3 | 1 | - | - | - | 2 | - | ||||||||||||||||||||||||||||||
| Loss related to interest rate swaps | - | - | (103 | ) | 103 | 24 | - | - | - | 79 | 0.06 | ||||||||||||||||||||||||||||||
| Gain on equity method investment transactions | - | - | - | - | (17 | ) | 71 | - | - | (54 | ) | (0.04 | ) | ||||||||||||||||||||||||||||
| Equity method investee items | - | - | - | - | 1 | - | (6 | ) | - | 5 | - | ||||||||||||||||||||||||||||||
| Adjusted (Non-GAAP) | $ | 1,106 | $ | (33 | ) | $ | 85 | $ | 1,054 | $ | 198 | 18.8 | % | $ | - | $ | (99 | ) | $ | 7 | $ | 948 | $ | 0.66 | |||||||||||||||||
| Diluted Average Shares Outstanding | 1,445 | ||||||||||||||||||||||||||||||||||||||||
| (1) Taxes were computed for each of the items excluded from the company’s GAAP results based on the facts and tax assumptions associated with each item. | |||||||||||||||||||||||||||||||||||||||||
Schedule 7
| Mondelēz International, Inc. and Subsidiaries | ||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | ||||||||||||||
| Diluted EPS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| For the Three Months Ended March 31, | ||||||||||||||
| 2021 | 2020 | $ Change | % Change | |||||||||||
| Diluted EPS attributable to Mondelēz International (GAAP) | $ | 0.68 | $ | 0.51 | $ | 0.17 | 33.3 | % | ||||||
| Simplify to Grow Program | 0.07 | 0.03 | 0.04 | |||||||||||
| Mark-to-market (gains)/losses from derivatives | (0.07 | ) | 0.11 | (0.18 | ) | |||||||||
| Acquisition-related costs | 0.01 | - | 0.01 | |||||||||||
| Net earnings from divestitures | - | (0.01 | ) | 0.01 | ||||||||||
| Loss related to interest rate swaps | - | 0.06 | (0.06 | ) | ||||||||||
| Loss on debt extinguishment and related expenses | 0.07 | - | 0.07 | |||||||||||
| Gain on equity method investment transactions | - | (0.04 | ) | 0.04 | ||||||||||
| Equity method investee items | 0.01 | - | 0.01 | |||||||||||
| Adjusted EPS (Non-GAAP) | $ | 0.77 | $ | 0.66 | $ | 0.11 | 16.7 | % | ||||||
| Impact of favorable currency | (0.04 | ) | - | (0.04 | ) | |||||||||
| Adjusted EPS @ Constant FX (Non-GAAP) | $ | 0.73 | $ | 0.66 | $ | 0.07 | 10.6 | % | ||||||
| Adjusted EPS @ Constant FX - Key Drivers | ||||||||||||||
| Increase in operations | $ | 0.08 | ||||||||||||
| Change in benefit plan non-service income | - | |||||||||||||
| Change in interest and other expense, net | - | |||||||||||||
| Decrease in equity method investment net earnings | (0.01 | ) | ||||||||||||
| Change in income taxes | (0.01 | ) | ||||||||||||
| Change in shares outstanding | 0.01 | |||||||||||||
| $ | 0.07 | |||||||||||||
Schedule 8
| Mondelēz International, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | |||||||||||||||||||||||||||||||||||
| Segment Data | |||||||||||||||||||||||||||||||||||
| (in millions of U.S. dollars) | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Unrealized G/(L) on Hedging Activities | General Corporate Expenses | Amortization of Intangibles | Other Items | Mondelēz International | |||||||||||||||||||||||||||
| Net Revenue | |||||||||||||||||||||||||||||||||||
| Reported (GAAP) | $ | 669 | $ | 1,745 | $ | 2,847 | $ | 1,977 | $ | - | $ | - | $ | - | $ | - | $ | 7,238 | |||||||||||||||||
| Divestitures | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Adjusted (Non-GAAP) | $ | 669 | $ | 1,745 | $ | 2,847 | $ | 1,977 | $ | - | $ | - | $ | - | $ | - | $ | 7,238 | |||||||||||||||||
| Operating Income | |||||||||||||||||||||||||||||||||||
| Reported (GAAP) | $ | 76 | $ | 362 | $ | 557 | $ | 270 | $ | 118 | $ | (64 | ) | $ | (38 | ) | $ | 2 | $ | 1,283 | |||||||||||||||
| Simplify to Grow Program | 6 | (19 | ) | 16 | 111 | - | 8 | - | - | 122 | |||||||||||||||||||||||||
| Mark-to-market (gains)/losses from derivatives | - | - | - | - | (118 | ) | - | - | - | (118 | ) | ||||||||||||||||||||||||
| Acquisition integration costs | - | - | - | 1 | - | - | - | - | 1 | ||||||||||||||||||||||||||
| Acquisition-related costs | - | - | - | - | - | - | - | 7 | 7 | ||||||||||||||||||||||||||
| Gain on acquisition | - | - | - | - | - | - | - | (9 | ) | (9 | ) | ||||||||||||||||||||||||
| Remeasurement of net monetary position | 5 | - | - | - | - | - | - | - | 5 | ||||||||||||||||||||||||||
| Impact from pension participation changes | - | - | 1 | - | - | - | - | - | 1 | ||||||||||||||||||||||||||
| Adjusted (Non-GAAP) | $ | 87 | $ | 343 | $ | 574 | $ | 382 | $ | - | $ | (56 | ) | $ | (38 | ) | $ | - | $ | 1,292 | |||||||||||||||
| Currency | 13 | (20 | ) | (43 | ) | (2 | ) | - | 6 | 2 | - | (44 | ) | ||||||||||||||||||||||
| Adjusted @ Constant FX (Non-GAAP) | $ | 100 | $ | 323 | $ | 531 | $ | 380 | $ | - | $ | (50 | ) | $ | (36 | ) | $ | - | $ | 1,248 | |||||||||||||||
| % Change - Reported (GAAP) | (2.6 | )% | 54.7 | % | 18.0 | % | (29.1 | )% | n/m | 15.8 | % | 11.6 | % | n/m | 49.9 | % | |||||||||||||||||||
| % Change - Adjusted (Non-GAAP) | (4.4 | )% | 45.3 | % | 17.4 | % | (3.0 | )% | n/m | 8.2 | % | 11.6 | % | n/m | 16.8 | % | |||||||||||||||||||
| % Change - Adjusted @ Constant FX (Non-GAAP) | 9.9 | % | 36.9 | % | 8.6 | % | (3.6 | )% | n/m | 18.0 | % | 16.3 | % | n/m | 12.8 | % | |||||||||||||||||||
| Operating Income Margin | |||||||||||||||||||||||||||||||||||
| Reported % | 11.4 | % | 20.7 | % | 19.6 | % | 13.7 | % | 17.7 | % | |||||||||||||||||||||||||
| Reported pp change | 0.7 pp | 5.1 pp | 1.3 pp | (6.4)pp | 4.9 pp | ||||||||||||||||||||||||||||||
| Adjusted % | 13.0 | % | 19.7 | % | 20.2 | % | 19.3 | % | 17.9 | % | |||||||||||||||||||||||||
| Adjusted pp change | 0.5 pp | 4.0 pp | 1.3 pp | (1.5)pp | 1.4 pp | ||||||||||||||||||||||||||||||
| For the Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Unrealized G/(L) on Hedging Activities | General Corporate Expenses | Amortization of Intangibles | Other Items | Mondelēz International | |||||||||||||||||||||||||||
| Net Revenue | |||||||||||||||||||||||||||||||||||
| Reported (GAAP) | $ | 726 | $ | 1,502 | $ | 2,584 | $ | 1,895 | $ | - | $ | - | $ | - | $ | - | $ | 6,707 | |||||||||||||||||
| Divestitures | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
| Adjusted (Non-GAAP) | $ | 726 | $ | 1,502 | $ | 2,584 | $ | 1,895 | $ | - | $ | - | $ | - | $ | - | $ | 6,707 | |||||||||||||||||
| Operating Income | |||||||||||||||||||||||||||||||||||
| Reported (GAAP) | $ | 78 | $ | 234 | $ | 472 | $ | 381 | $ | (185 | ) | $ | (76 | ) | $ | (43 | ) | $ | (5 | ) | $ | 856 | |||||||||||||
| Simplify to Grow Program | 11 | 2 | 17 | 12 | - | 16 | - | - | 58 | ||||||||||||||||||||||||||
| Mark-to-market (gains)/losses from derivatives | - | - | - | - | 185 | - | - | - | 185 | ||||||||||||||||||||||||||
| Acquisition integration costs | - | - | - | 1 | - | (1 | ) | - | - | - | |||||||||||||||||||||||||
| Acquisition-related costs | - | - | - | - | - | - | - | 5 | 5 | ||||||||||||||||||||||||||
| Remeasurement of net monetary position | 2 | - | - | - | - | - | - | - | 2 | ||||||||||||||||||||||||||
| Adjusted (Non-GAAP) | $ | 91 | $ | 236 | $ | 489 | $ | 394 | $ | - | $ | (61 | ) | $ | (43 | ) | $ | - | $ | 1,106 | |||||||||||||||
| Operating Income Margin | |||||||||||||||||||||||||||||||||||
| Reported % | 10.7 | % | 15.6 | % | 18.3 | % | 20.1 | % | 12.8 | % | |||||||||||||||||||||||||
| Adjusted % | 12.5 | % | 15.7 | % | 18.9 | % | 20.8 | % | 16.5 | % | |||||||||||||||||||||||||
Schedule 9
| Mondelēz International, Inc. and Subsidiaries | |||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | |||||||||||
| Net Cash Provided by Operating Activities to Free Cash Flow | |||||||||||
| (in millions of U.S. dollars) | |||||||||||
| (Unaudited) | |||||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2021 | 2020 | $ Change | |||||||||
| Net Cash Provided by Operating Activities (GAAP) | $ | 915 | $ | 284 | $ | 631 | |||||
| Capital Expenditures | (216 | ) | (214 | ) | (2 | ) | |||||
| Free Cash Flow (Non-GAAP) | $ | 699 | $ | 70 | $ | 629 | |||||
| Contacts: | Jess Vogl (Media) | Shep Dunlap (Investors) |
| 1-847-943-5678 | 1-847-943-5454 | |
| news@mdlz.com | ir@mdlz.com |
FAQ
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