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Mondelez's Q4 Earnings Top Estimates Despite Cocoa Cost Headwinds
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Key Takeaways
Mondelez posted Q4 revenues of $10.5B and adjusted EPS of 72 cents, beating consensus estimates.
MDLZ benefited from pricing-led organic growth, with emerging market revenues up 13.2% year over year.
Higher cocoa costs pressured margins, but pricing actions and productivity gains lifted operating income.
Mondelez International, Inc. (MDLZ - Free Report) posted fourth-quarter 2025 results, wherein revenues and adjusted earnings per share increased and surpassed the respective Zacks Consensus Estimate.
Management noted that cocoa cost inflation remained significant during the quarter, though it expects costs to moderate over time. The company remains focused on enhancing volume trends, strengthening brand investments and driving operational efficiencies to support long-term performance.
Adjusted earnings were 72 cents per share, which increased 4.6% on a constant-currency (cc) basis and beat the Zacks Consensus Estimate of 70 cents. The improvement reflected favorable pricing and cost discipline, partially offset by higher input costs.
Net revenues rose 9.3% year over year to $10.5 billion, outpacing the Zacks Consensus Estimate of $10.3 billion. The increase in the top line was driven by organic net revenue growth, positive foreign-currency impacts and revenue contributions from the Evirth acquisition.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Organic net revenues grew 5.1% year over year in the fourth quarter. This growth was primarily fueled by pricing, which contributed 9.9 percentage points (pp), while volume/mix declined 4.8 pp due to continued elasticity and affordability pressures.
Revenues from emerging markets increased 13.2% year over year to $4.1 billion, with organic growth of 8%. Growth in these markets was supported by strong pricing execution across Latin America and AMEA, partially offset by volume softness in select geographies.
Revenues from developed markets increased 6.9% year over year to $6.4 billion, with organic growth of 3.4%. While pricing actions supported growth, volume/mix declines, particularly in North America, continued to weigh on results.
Region-wise, revenues jumped 17.3% in Europe and 8.9% in Asia, the Middle East and Africa, and 7.9% in Latin America. North America remained under pressure, with revenues declining 0.6% year over year. On an organic basis, revenues rose 8.3% in Europe and 7.5% in AMEA, increased 4.4% in Latin America and fell 0.5% in North America.
Adjusted gross profit increased modestly at cc, while the Zacks Rank #4 (Sell) company’s adjusted gross margin declined 100 basis points to 30.5%. The drop was primarily caused by elevated raw material costs, particularly cocoa, and an adverse product mix, partially offset by increased pricing and manufacturing cost efficiencies fueled by productivity initiatives.
Adjusted operating income surged 22.1% at cc, while the adjusted operating income margin improved 190 basis points to 11.9%. The increase was primarily backed by elevated net pricing, reduced advertising and consumer promotion costs, reduced overhead expenses and productivity gains, partially offset by an adverse product mix and continued input cost inflation.
Mondelez’s Financial Health Snapshot
MDLZ ended the quarter with cash and cash equivalents of $2.1 billion and total debt of $21.2 billion. For full-year 2025, the company generated $4.5 billion in net cash from operating activities and delivered free cash flow of $3.2 billion.
Mondelez returned $4.9 billion to shareholders through dividends and share buybacks during 2025, underscoring its commitment to disciplined capital allocation.
What to Expect From MDLZ in 2026?
Mondelez’s outlook for 2026 reflects a cautious stance amid heightened macroeconomic, geopolitical and commodity-related uncertainty.
MDLZ expects organic net revenue growth to range between flat and 2%. Adjusted earnings per share are projected to grow between flat and 5% on a constant-currency basis. Free cash flow is expected to be approximately $3 billion. The company anticipates currency translation to boost 2026 net revenue growth by about 2% and lift adjusted EPS by roughly 6 cents.
Shares of MDLZ have risen 6.2% in the past three months against the industry’s 2.9% decline.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average.
The Hershey Company (HSY - Free Report) , a confectionery product and pantry item company, currently carries a Zacks Rank #2 (Buy). HSY delivered a trailing four-quarter earnings surprise of almost 15%, on average.
The Zacks Consensus Estimate for Hershey’s fiscal 2026 sales and earnings suggests growth of 3.6% and 17.5%, respectively, from the year-ago figures.
J&J Snack Foods Corp. (JJSF - Free Report) manufactures, markets, and distributes nutritional snack food and beverages, with a Zacks Rank #2 at present. JJSF delivered an earnings surprise for two consecutive quarters.
The Zacks Consensus Estimate for J&J Snack Foods’ current fiscal-year sales and earnings indicates growth of 1.7% and 4.5%, respectively, from the year-ago figures.
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Mondelez's Q4 Earnings Top Estimates Despite Cocoa Cost Headwinds
Key Takeaways
Mondelez International, Inc. (MDLZ - Free Report) posted fourth-quarter 2025 results, wherein revenues and adjusted earnings per share increased and surpassed the respective Zacks Consensus Estimate.
Management noted that cocoa cost inflation remained significant during the quarter, though it expects costs to moderate over time. The company remains focused on enhancing volume trends, strengthening brand investments and driving operational efficiencies to support long-term performance.
Adjusted earnings were 72 cents per share, which increased 4.6% on a constant-currency (cc) basis and beat the Zacks Consensus Estimate of 70 cents. The improvement reflected favorable pricing and cost discipline, partially offset by higher input costs.
Net revenues rose 9.3% year over year to $10.5 billion, outpacing the Zacks Consensus Estimate of $10.3 billion. The increase in the top line was driven by organic net revenue growth, positive foreign-currency impacts and revenue contributions from the Evirth acquisition.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Mondelez International, Inc. price-consensus-eps-surprise-chart | Mondelez International, Inc. Quote
MDLZ’s Revenue & Margin Breakdown: Key Insights
Organic net revenues grew 5.1% year over year in the fourth quarter. This growth was primarily fueled by pricing, which contributed 9.9 percentage points (pp), while volume/mix declined 4.8 pp due to continued elasticity and affordability pressures.
Revenues from emerging markets increased 13.2% year over year to $4.1 billion, with organic growth of 8%. Growth in these markets was supported by strong pricing execution across Latin America and AMEA, partially offset by volume softness in select geographies.
Revenues from developed markets increased 6.9% year over year to $6.4 billion, with organic growth of 3.4%. While pricing actions supported growth, volume/mix declines, particularly in North America, continued to weigh on results.
Region-wise, revenues jumped 17.3% in Europe and 8.9% in Asia, the Middle East and Africa, and 7.9% in Latin America. North America remained under pressure, with revenues declining 0.6% year over year. On an organic basis, revenues rose 8.3% in Europe and 7.5% in AMEA, increased 4.4% in Latin America and fell 0.5% in North America.
Adjusted gross profit increased modestly at cc, while the Zacks Rank #4 (Sell) company’s adjusted gross margin declined 100 basis points to 30.5%. The drop was primarily caused by elevated raw material costs, particularly cocoa, and an adverse product mix, partially offset by increased pricing and manufacturing cost efficiencies fueled by productivity initiatives.
Adjusted operating income surged 22.1% at cc, while the adjusted operating income margin improved 190 basis points to 11.9%. The increase was primarily backed by elevated net pricing, reduced advertising and consumer promotion costs, reduced overhead expenses and productivity gains, partially offset by an adverse product mix and continued input cost inflation.
Mondelez’s Financial Health Snapshot
MDLZ ended the quarter with cash and cash equivalents of $2.1 billion and total debt of $21.2 billion. For full-year 2025, the company generated $4.5 billion in net cash from operating activities and delivered free cash flow of $3.2 billion.
Mondelez returned $4.9 billion to shareholders through dividends and share buybacks during 2025, underscoring its commitment to disciplined capital allocation.
What to Expect From MDLZ in 2026?
Mondelez’s outlook for 2026 reflects a cautious stance amid heightened macroeconomic, geopolitical and commodity-related uncertainty.
MDLZ expects organic net revenue growth to range between flat and 2%. Adjusted earnings per share are projected to grow between flat and 5% on a constant-currency basis. Free cash flow is expected to be approximately $3 billion. The company anticipates currency translation to boost 2026 net revenue growth by about 2% and lift adjusted EPS by roughly 6 cents.
Shares of MDLZ have risen 6.2% in the past three months against the industry’s 2.9% decline.
Stocks to Consider
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures. MAMA delivered a trailing four-quarter earnings surprise of 133.3%, on average.
The Hershey Company (HSY - Free Report) , a confectionery product and pantry item company, currently carries a Zacks Rank #2 (Buy). HSY delivered a trailing four-quarter earnings surprise of almost 15%, on average.
The Zacks Consensus Estimate for Hershey’s fiscal 2026 sales and earnings suggests growth of 3.6% and 17.5%, respectively, from the year-ago figures.
J&J Snack Foods Corp. (JJSF - Free Report) manufactures, markets, and distributes nutritional snack food and beverages, with a Zacks Rank #2 at present. JJSF delivered an earnings surprise for two consecutive quarters.
The Zacks Consensus Estimate for J&J Snack Foods’ current fiscal-year sales and earnings indicates growth of 1.7% and 4.5%, respectively, from the year-ago figures.