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Mondelez (MDLZ) Q1 Earnings Top Estimates, Sales up
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Mondelez International, Inc. (MDLZ - Free Report) reported first-quarter 2020 results, with earnings and sales surpassing the Zacks Consensus Estimate for the third and sixth successive time, respectively. Also, organic sales increased year over year on favorable pricing and volumes, though adverse currency movements were a hurdle. Earnings also increased year over year.
Moreover, the company witnessed increased consumer demand for its snacks in developed markets, majorly in North America during March. However, Mondelez faced some challenges in certain emerging markets during this time. Apart from this, the company has been undertaking various cost-control measures along with expanding its credit facility to maintain financial flexibility amid the coronavirus crisis. Also, management has decided to suspend its share buyback plans due to the coronavirus outbreak.
Given the current situation related to the coronavirus outbreak and its unpredictable impact on economic activities, Mondelez is withdrawing its full-year 2020 guidance.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Adjusted earnings came in at 69 cents per share, up 6.2% year over year. The metric surpassed the Zacks Consensus Estimate of 65 cents. On a constant-currency (cc) basis, adjusted earnings increased 10.8% year over year. Improved sales are likely to have been offset by lower adjusted margins.
Net revenues advanced 2.6 % year over year to $6,707 million and surpassed the Zacks Consensus Estimate of $6,536 million. The upside was backed by organic net revenues, which rose 6.4% on improved pricing and volume/mix. However, currency headwinds were a deterrent.
Revenues from emerging markets declined 3.4% to $2,417 million, while the same increased 4.5% on an organic basis. Revenues from developed markets increased 6.3% to $4,290 million, while the same increased 7.6% on an organic basis.
Regional-wise, revenues in Latin America and Asia, Middle East & Africa dropped 9.3% and 2.5% year over year, respectively. Nevertheless, the same moved up 1.3% and 15.1% in Europe and North America, respectively. On an organic basis, revenues increased 7%, 2.2%, 4.3% and 13.4% in Latin America; Asia, Middle East & Africa; Europe; and North America, respectively.
Adjusted gross profit increased $151 million at constant currency (cc). However, adjusted gross margin contracted 20 basis points (bps) due to increased raw material costs, unfavorable currency and disruptions caused by coronavirus outbreak.
The company’s adjusted operating income increased $62 million (at cc) from the prior-year quarter’s figure. However, adjusted operating margin fell 30 bps to 16.5% due to lower adjusted gross profit margin and elevated marketing expenses.
Other Financials
Mondelez ended the quarter with cash and cash equivalents of $1,925 million, long-term debt of $13,354 million and total equity of $25,752 million.
At the end of the quarter, the company generated cash from operating activities of nearly $284 million. Free cash flow was $70 million during the same time period.
During the quarter, the company distributed around $1.1 billion to shareholders through share repurchases and cash dividends.
Price Performance
This Zacks Rank #3 (Hold) stock has gained 2.8% in a year, against the industry’s decline of 2.1%.
General Mills (GIS - Free Report) has a long-term earnings growth rate of 7.5% and a Zacks Rank #2.
Conagra Brands (CAG - Free Report) has a long-term earnings growth rate of 7% and a Zacks Rank #2.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Mondelez (MDLZ) Q1 Earnings Top Estimates, Sales up
Mondelez International, Inc. (MDLZ - Free Report) reported first-quarter 2020 results, with earnings and sales surpassing the Zacks Consensus Estimate for the third and sixth successive time, respectively. Also, organic sales increased year over year on favorable pricing and volumes, though adverse currency movements were a hurdle. Earnings also increased year over year.
Moreover, the company witnessed increased consumer demand for its snacks in developed markets, majorly in North America during March. However, Mondelez faced some challenges in certain emerging markets during this time. Apart from this, the company has been undertaking various cost-control measures along with expanding its credit facility to maintain financial flexibility amid the coronavirus crisis. Also, management has decided to suspend its share buyback plans due to the coronavirus outbreak.
Given the current situation related to the coronavirus outbreak and its unpredictable impact on economic activities, Mondelez is withdrawing its full-year 2020 guidance.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Mondelez International, Inc. price-consensus-eps-surprise-chart | Mondelez International, Inc. Quote
Q1 Performance
Adjusted earnings came in at 69 cents per share, up 6.2% year over year. The metric surpassed the Zacks Consensus Estimate of 65 cents. On a constant-currency (cc) basis, adjusted earnings increased 10.8% year over year. Improved sales are likely to have been offset by lower adjusted margins.
Net revenues advanced 2.6 % year over year to $6,707 million and surpassed the Zacks Consensus Estimate of $6,536 million. The upside was backed by organic net revenues, which rose 6.4% on improved pricing and volume/mix. However, currency headwinds were a deterrent.
Revenues from emerging markets declined 3.4% to $2,417 million, while the same increased 4.5% on an organic basis. Revenues from developed markets increased 6.3% to $4,290 million, while the same increased 7.6% on an organic basis.
Regional-wise, revenues in Latin America and Asia, Middle East & Africa dropped 9.3% and 2.5% year over year, respectively. Nevertheless, the same moved up 1.3% and 15.1% in Europe and North America, respectively. On an organic basis, revenues increased 7%, 2.2%, 4.3% and 13.4% in Latin America; Asia, Middle East & Africa; Europe; and North America, respectively.
Adjusted gross profit increased $151 million at constant currency (cc). However, adjusted gross margin contracted 20 basis points (bps) due to increased raw material costs, unfavorable currency and disruptions caused by coronavirus outbreak.
The company’s adjusted operating income increased $62 million (at cc) from the prior-year quarter’s figure. However, adjusted operating margin fell 30 bps to 16.5% due to lower adjusted gross profit margin and elevated marketing expenses.
Other Financials
Mondelez ended the quarter with cash and cash equivalents of $1,925 million, long-term debt of $13,354 million and total equity of $25,752 million.
At the end of the quarter, the company generated cash from operating activities of nearly $284 million. Free cash flow was $70 million during the same time period.
During the quarter, the company distributed around $1.1 billion to shareholders through share repurchases and cash dividends.
Price Performance
This Zacks Rank #3 (Hold) stock has gained 2.8% in a year, against the industry’s decline of 2.1%.
Don’t Miss These Solid Food Stocks
Campbell Soup Company (CPB - Free Report) has a long-term earnings growth rate of 7.2% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
General Mills (GIS - Free Report) has a long-term earnings growth rate of 7.5% and a Zacks Rank #2.
Conagra Brands (CAG - Free Report) has a long-term earnings growth rate of 7% and a Zacks Rank #2.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>