Mondelez reveals annual results upturn, despite wider economic uncertainties
Global confectionery and snacking group, Mondelez International has released its full-year results for 2024, that have shown annual growth of 4.3%, to $36.4 billion, against a backdrop of turbulent international economies, writes Neill Barston.
In terms of its quarterly performance, the final period of the year saw sales revenues rising around 3.1% year-on-year, gaining revenues of $9.6 billion, with the impact of cocoa and sugar prices remaining high in many locations, as well as geopolitical issues affecting distribution operations.
According to the company, its net profit for the fourth quarter was 3.7 bn, up 6.9 per cent on the same period last year, as the business has continued to expand its portfolio and range of activities around the world.
The company’s largest market remained Europe, with revenues of 3.7bn for the quarter (up 5.8 per cent year-on-year), followed by the US (2.7, up marginally by 0.1 per cent), and Asia, Middle East and Africa, 1.9bn, with the latter delivering 9.9 per cent improvements.
Significantly, in its outlook, the business has opted not to account for potential tariffs being implemented by the incoming US head of state may result in market volatility as nations sought to place their own respective new taxes, which it believed would impact on its results. Indeed, the business has significant interests in near neighbours, Mexico and Canada, with both nations anticipated to offer enhanced tax hikes should the Republican government drive forward with its tax demands to overseas businesses looking to import into the region.
Consequently, it stated that its outlook is provided ‘in the context of greater than usual volatility,’ including due to geopolitical, trade and regulatory uncertainty and commodity prices. This outlook does not reflect any imposition of import tariffs by the U.S. and potential retaliatory actions taken by other countries, as the tariff and trade environment is uncertain and rapidly evolving.
For 2025, the company expects Organic Net Revenue growth to be approximately 5 percent. The company expects Adjusted EPS to decline approximately 10% on a constant currency basis due to unprecedented cocoa cost inflation. The company also expects 2025 Free Cash Flow of $3+ billion, and estimates currency translation would decrease 2025 net revenue growth by approximately 2.5 percent.
Speaking on the results, Dirk Van de Put, chair and chief executive officer, said: “Fiscal 2024 was another strong year of performance for our company. We delivered balanced top-line growth, strong earnings, and robust free cash flow generation, while returning significant capital back to shareholders,” said Dirk Van de Put, Chair and Chief Executive Officer.
“As we transition into 2025, we remain focused on executing against our long-term growth strategy and delivering on our chocolate business playbook to navigate unprecedented cocoa cost inflation. Our teams are well-equipped to stay agile and take the necessary actions to navigate this challenging operating environment. We believe we are solidly positioned for attractive long-term top- and bottom-line growth.”
