Third Quarter Highlights
- Net revenues increased +16.3% driven by Organic Net
Revenue1 growth of +15.7% with strong +3.8pp Volume/Mix
performance, Volume/Mix positive across all regions
- Diluted EPS was $0.72, up +84.6%; Adjusted EPS1 was
$0.82, up +16.7% on a constant currency basis
- Year-to-date cash provided by operating activities was $3.2
billion; Free Cash Flow1 was $2.4 billion, up +$0.5
billion vs prior year
- Return of capital to shareholders was $2.2 billion in the first
nine months of the year
- Closed the divestiture of our developed market gum business for
$1.4 billion
- Raising Organic Net Revenue outlook to 14% to 15% and Adjusted
EPS growth outlook to ~16%
CHICAGO, Nov. 01, 2023 (GLOBE NEWSWIRE) -- Mondelēz
International, Inc. (Nasdaq: MDLZ) today reported its third quarter
2023 results.
“We delivered strong third quarter results that
reinforce the durability of our categories, strength of our brands
and geographies, and consistency of our execution. All regions
delivered strong revenue growth with double-digit profitability
growth, underpinned by strong volume/mix performance,” said Dirk
Van de Put, Chairman and Chief Executive Officer. “We believe the
best remains ahead as we strengthen and reshape our portfolio,
substantially reinvest in our iconic brands, and continue
developing best-in-class capabilities in key enablers such as
digital and revenue growth management to further drive
high-quality, sustainable growth for years to come. Our strong
year-to-date performance and category attractiveness provide
confidence to again raise both our net revenue and earnings outlook
for the year.”
Net Revenue
$ in
millions |
Reported
Net Revenues |
|
Organic Net Revenue Growth |
|
Q3 2023 |
|
% Chg
vs PY |
|
Q3 2023 |
|
Vol/Mix |
|
|
Pricing |
|
Quarter
3 |
|
|
|
|
|
|
|
|
|
|
|
Latin America |
$ |
1,305 |
|
42.9 |
% |
|
35.1 |
% |
|
3.6 |
pp |
|
31.5 |
pp |
Asia, Middle East & Africa |
|
1,791 |
|
5.1 |
|
|
11.9 |
|
|
3.3 |
|
|
8.6 |
|
Europe |
|
3,086 |
|
16.5 |
|
|
15.4 |
|
|
3.3 |
|
|
12.1 |
|
North America |
|
2,847 |
|
14.0 |
|
|
11.4 |
|
|
4.6 |
|
|
6.8 |
|
Mondelēz International |
$ |
9,029 |
|
16.3 |
% |
|
15.7 |
% |
|
3.8 |
pp |
|
11.9 |
pp |
Emerging Markets |
$ |
3,527 |
|
14.0 |
% |
|
19.0 |
% |
|
3.4 |
pp |
|
15.6pp |
pp |
Developed Markets |
$ |
5,502 |
|
17.8 |
% |
|
13.4 |
% |
|
3.9 |
pp |
|
9.5pp |
pp |
|
|
|
|
|
|
|
|
|
|
|
|
September
Year-to-Date |
YTD 2023 |
|
|
|
YTD 2023 |
|
|
|
|
|
|
Latin America |
$ |
3,744 |
|
43.2 |
% |
|
37.2 |
% |
|
4.5 |
pp |
|
32.7 |
pp |
Asia, Middle East & Africa |
|
5,339 |
|
4.6 |
|
|
13.0 |
|
|
4.2 |
|
|
8.8 |
|
Europe |
|
9,319 |
|
13.5 |
|
|
15.9 |
|
|
— |
|
|
15.9 |
|
North America |
|
8,300 |
|
20.8 |
|
|
13.6 |
% |
|
3.0 |
|
|
10.6 |
|
Mondelēz International |
$ |
26,702 |
|
17.1 |
% |
|
17.0 |
% |
|
2.4 |
pp |
|
14.6 |
pp |
Emerging Markets |
$ |
10,431 |
|
17.7 |
% |
|
22.5 |
% |
|
3.4 |
pp |
|
19.1 |
pp |
Developed Markets |
$ |
16,271 |
|
16.7 |
% |
|
13.5 |
% |
|
1.7 |
pp |
|
11.8 |
pp |
Operating Income and Diluted EPS
$ in millions, except
per share data |
Reported |
|
Adjusted |
|
Q3 2023 |
|
vs PY
(Rpt Fx) |
|
Q3 2023 |
|
vs PY
(Rpt Fx) |
|
vs PY
(Cst Fx) |
Quarter
3 |
|
|
|
|
|
|
|
|
|
Gross Profit |
$ |
3,494 |
|
|
33.7 |
% |
|
$ |
3,483 |
|
|
20.1 |
% |
|
22.3 |
% |
Gross Profit Margin |
|
38.7 |
% |
|
5.0 |
pp |
|
|
38.6 |
% |
|
1.2 |
pp |
|
|
Operating Income |
$ |
1,379 |
|
|
103.1 |
% |
|
$ |
1,511 |
|
|
20.6 |
% |
|
24.5 |
% |
Operating Income Margin |
|
15.3 |
% |
|
6.6 |
pp |
|
|
16.7 |
% |
|
0.6 |
pp |
|
|
Net Earnings 2 |
$ |
984 |
|
|
85.0 |
% |
|
$ |
1,117 |
|
|
12.9 |
% |
|
17.0 |
% |
Diluted EPS |
$ |
0.72 |
|
|
84.6 |
% |
|
$ |
0.82 |
|
|
13.9 |
% |
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
September
Year-to-Date |
YTD 2023 |
|
|
|
YTD 2023 |
|
|
|
|
Gross Profit |
$ |
10,294 |
|
|
25.0 |
% |
|
$ |
10,075 |
|
|
16.3 |
% |
|
20.0 |
% |
Gross Profit Margin |
|
38.6 |
% |
|
2.5 |
pp |
|
|
37.7 |
% |
|
(0.3 |
)pp |
|
|
Operating Income |
$ |
4,309 |
|
|
59.6 |
% |
|
$ |
4,424 |
|
|
18.7 |
% |
|
23.6 |
% |
Operating Income Margin |
|
16.1 |
% |
|
4.3 |
pp |
|
|
16.6 |
% |
|
0.2 |
pp |
|
|
Net Earnings |
$ |
4,009 |
|
|
87.9 |
% |
|
$ |
3,373 |
|
|
12.0 |
% |
|
17.8 |
% |
Diluted EPS |
$ |
2.92 |
|
|
89.6 |
% |
|
$ |
2.46 |
|
|
13.4 |
% |
|
18.9 |
% |
Third Quarter Commentary
- Net revenues increased 16.3 percent driven by
Organic Net Revenue growth of 15.7 percent, and incremental sales
from the company's 2022 acquisitions of Ricolino and Clif Bar,
partially offset by unfavorable currency. Organic Net Revenue
growth was driven by both pricing and favorable
volume/mix.
- Gross profit increased $881 million, and gross
profit margin increased 500 basis points to 38.7 percent primarily
driven by favorable year-over-year change in mark-to-market impacts
from derivatives and an increase in Adjusted Gross
Profit1 margin. Adjusted Gross Profit increased $648
million at constant currency, and Adjusted Gross Profit margin
increased 120 basis points to 38.6 percent due to pricing, lower
manufacturing costs driven by productivity and favorable product
mix, partially offset by higher raw material and transportation
costs.
- Operating income increased $700 million and
operating income margin was 15.3 percent, up 660 basis points
primarily due to lapping prior-year acquisition-related costs,
favorable year-over-year change in mark-to-market gains/(losses)
from currency and commodity hedging activities, higher Adjusted
Operating Income margin and lapping prior-year inventory step-up
charges. These favorable items were partially offset by higher
acquisition integration costs and contingent consideration
adjustments, and higher divestiture-related costs. Adjusted
Operating Income increased $307 million at constant currency while
Adjusted Operating Income margin increased 60 basis points to 16.7
percent, driven primarily by higher net pricing, lower
manufacturing cost driven by productivity, SG&A leverage and
favorable product mix, partially offset by input cost
inflation.
- Diluted EPS was $0.72, up 84.6 percent,
primarily due to lapping prior-year acquisition-related costs, an
increase in Adjusted EPS, favorable year-over-year change in
mark-to-market impacts from currency and commodity derivatives, a
gain on marketable securities and lapping prior-year inventory
step-up charges. These favorable items were partially offset by
higher equity method investee items, higher acquisition integration
costs and contingent consideration adjustments, higher intangible
asset impairment charges, lapping prior-year net earnings from
divestitures and higher remeasurement loss of net monetary
position.
- Adjusted EPS was $0.82, up 16.7 percent on a
constant currency basis primarily driven by strong operating gains,
lower interest expense and fewer shares outstanding, partially
offset by higher taxes, lower benefit plan non-service income and
lower equity method investment net earnings.
- Capital Return: The company returned $0.6
billion to shareholders in cash dividends and share
repurchases.
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 14 to 15 percent Organic Net Revenue growth versus the
prior outlook of 12+ 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 approximately 16
percent versus the prior outlook of 12+ 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 4 percent3 with a negative $0.15 impact to
Adjusted EPS3.
Outlook is provided in the context of greater than usual
volatility as a result of 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 October 25, 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 Ukraine and the Middle
East, 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;
- 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;
- 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;
- global or regional health pandemics
or epidemics;
- 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 September 30, |
|
|
For the Nine Months
Ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
Net revenues |
$ |
9,029 |
|
|
$ |
7,763 |
|
|
|
$ |
26,702 |
|
|
$ |
22,801 |
|
Cost of sales |
|
5,535 |
|
|
|
5,150 |
|
|
|
|
16,408 |
|
|
|
14,564 |
|
|
Gross profit |
|
3,494 |
|
|
|
2,613 |
|
|
|
|
10,294 |
|
|
|
8,237 |
|
|
Gross profit margin |
|
38.7 |
% |
|
|
33.7 |
% |
|
|
|
38.6 |
% |
|
|
36.1 |
% |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
2,019 |
|
|
|
1,884 |
|
|
|
|
5,743 |
|
|
|
5,253 |
|
Asset impairment and exit costs |
|
58 |
|
|
|
18 |
|
|
|
|
128 |
|
|
|
188 |
|
Amortization of intangible assets |
|
38 |
|
|
|
32 |
|
|
|
|
114 |
|
|
|
96 |
|
|
Operating income |
|
1,379 |
|
|
|
679 |
|
|
|
|
4,309 |
|
|
|
2,700 |
|
|
Operating income margin |
|
15.3 |
% |
|
|
8.7 |
% |
|
|
|
16.1 |
% |
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
Benefit plan non-service income |
|
(19 |
) |
|
|
(30 |
) |
|
|
|
(60 |
) |
|
|
(93 |
) |
Interest and other expense, net |
|
66 |
|
|
|
71 |
|
|
|
|
258 |
|
|
|
337 |
|
Loss/(gain) on marketable securities |
|
1 |
|
|
|
- |
|
|
|
|
(606 |
) |
|
|
- |
|
|
Earnings before income taxes |
|
1,331 |
|
|
|
638 |
|
|
|
|
4,717 |
|
|
|
2,456 |
|
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
(354 |
) |
|
|
(184 |
) |
|
|
|
(1,280 |
) |
|
|
(595 |
) |
|
Effective tax rate |
|
26.6 |
% |
|
|
28.8 |
% |
|
|
|
27.1 |
% |
|
|
24.2 |
% |
Gain/(loss) on equity method investment transactions |
|
1 |
|
|
|
(6 |
) |
|
|
|
465 |
|
|
|
(19 |
) |
Equity method investment net earnings |
|
10 |
|
|
|
85 |
|
|
|
|
116 |
|
|
|
300 |
|
|
Net earnings |
|
988 |
|
|
|
533 |
|
|
|
|
4,018 |
|
|
|
2,142 |
|
|
|
|
|
|
|
|
|
|
|
less: Noncontrolling interest earnings |
|
(4 |
) |
|
|
(1 |
) |
|
|
|
(9 |
) |
|
|
(8 |
) |
|
Net earnings attributable to Mondelēz International |
$ |
984 |
|
|
$ |
532 |
|
|
|
$ |
4,009 |
|
|
$ |
2,134 |
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to Mondelēz
International |
$ |
0.72 |
|
|
$ |
0.39 |
|
|
|
$ |
2.94 |
|
|
$ |
1.55 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to Mondelēz
International |
$ |
0.72 |
|
|
$ |
0.39 |
|
|
|
$ |
2.92 |
|
|
$ |
1.54 |
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
1,363 |
|
|
|
1,372 |
|
|
|
|
1,364 |
|
|
|
1,381 |
|
|
Diluted |
|
1,370 |
|
|
|
1,379 |
|
|
|
|
1,372 |
|
|
|
1,389 |
|
|
|
|
|
|
Schedule
2 |
Mondelēz
International, Inc. and Subsidiaries |
Condensed
Consolidated Balance Sheets |
(in millions
of U.S. dollars) |
(Unaudited) |
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
1,610 |
|
|
$ |
1,923 |
|
|
|
Trade receivables |
|
3,498 |
|
|
|
3,088 |
|
|
|
Other receivables |
|
793 |
|
|
|
819 |
|
|
|
Inventories, net |
|
3,808 |
|
|
|
3,381 |
|
|
|
Other current assets |
|
1,806 |
|
|
|
880 |
|
|
|
Total current assets |
|
11,515 |
|
|
|
10,091 |
|
|
|
Property, plant and equipment, net |
|
9,142 |
|
|
|
9,020 |
|
|
|
Operating lease right of use assets |
|
608 |
|
|
|
660 |
|
|
|
Goodwill |
|
23,307 |
|
|
|
23,450 |
|
|
|
Intangible assets, net |
|
19,475 |
|
|
|
19,710 |
|
|
|
Prepaid pension assets |
|
1,106 |
|
|
|
1,016 |
|
|
|
Deferred income taxes |
|
483 |
|
|
|
473 |
|
|
|
Equity method investments |
|
3,051 |
|
|
|
4,879 |
|
|
|
Other assets |
|
2,173 |
|
|
|
1,862 |
|
|
|
TOTAL ASSETS |
$ |
70,860 |
|
|
$ |
71,161 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Short-term borrowings |
$ |
1,221 |
|
|
$ |
2,299 |
|
|
|
Current portion of long-term debt |
|
2,354 |
|
|
|
383 |
|
|
|
Accounts payable |
|
7,658 |
|
|
|
7,562 |
|
|
|
Accrued marketing |
|
2,704 |
|
|
|
2,370 |
|
|
|
Accrued employment costs |
|
1,043 |
|
|
|
949 |
|
|
|
Other current liabilities |
|
3,956 |
|
|
|
3,168 |
|
|
|
Total current liabilities |
|
18,936 |
|
|
|
16,731 |
|
|
|
Long-term debt |
|
16,411 |
|
|
|
20,251 |
|
|
|
Long-term operating lease liabilities |
|
466 |
|
|
|
514 |
|
|
|
Deferred income taxes |
|
3,444 |
|
|
|
3,437 |
|
|
|
Accrued pension costs |
|
352 |
|
|
|
403 |
|
|
|
Accrued postretirement health care costs |
|
212 |
|
|
|
217 |
|
|
|
Other liabilities |
|
2,479 |
|
|
|
2,688 |
|
|
|
TOTAL LIABILITIES |
|
42,300 |
|
|
|
44,241 |
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
Common Stock |
|
- |
|
|
|
- |
|
|
|
Additional paid-in capital |
|
32,181 |
|
|
|
32,143 |
|
|
|
Retained earnings |
|
33,866 |
|
|
|
31,481 |
|
|
|
Accumulated other comprehensive losses |
|
(11,232 |
) |
|
|
(10,947 |
) |
|
|
Treasury stock |
|
(26,280 |
) |
|
|
(25,794 |
) |
|
|
Total Mondelēz International Shareholders’ Equity |
|
28,535 |
|
|
|
26,883 |
|
|
|
Noncontrolling interest |
|
25 |
|
|
|
37 |
|
|
|
TOTAL EQUITY |
|
28,560 |
|
|
|
26,920 |
|
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
70,860 |
|
|
$ |
71,161 |
|
|
|
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
Incr/(Decr) |
|
|
|
|
|
|
Short-term borrowings |
$ |
1,221 |
|
|
$ |
2,299 |
|
|
$ |
(1,078 |
) |
Current
portion of long-term debt |
|
2,354 |
|
|
|
383 |
|
|
|
1,971 |
|
Long-term
debt |
|
16,411 |
|
|
|
20,251 |
|
|
|
(3,840 |
) |
Total
Debt |
|
19,986 |
|
|
|
22,933 |
|
|
|
(2,947 |
) |
Cash and
cash equivalents |
|
1,610 |
|
|
|
1,923 |
|
|
|
(313 |
) |
Net Debt
(1) |
$ |
18,376 |
|
|
$ |
21,010 |
|
|
$ |
(2,634 |
) |
|
|
|
|
|
|
(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 Nine Months Ended
September 30, |
|
|
2023 |
|
|
|
2022 |
|
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES |
|
|
|
Net earnings |
$ |
4,018 |
|
|
$ |
2,142 |
|
Adjustments to reconcile net earnings to operating cash flows: |
|
|
|
Depreciation and amortization |
|
902 |
|
|
|
819 |
|
Stock-based compensation expense |
|
109 |
|
|
|
88 |
|
Deferred income tax provision |
|
9 |
|
|
|
41 |
|
Asset impairments and accelerated depreciation |
|
95 |
|
|
|
178 |
|
Loss on early extinguishment of debt |
|
1 |
|
|
|
38 |
|
(Gain)/loss on equity method investment transactions |
|
(465 |
) |
|
|
19 |
|
Equity method investment net earnings |
|
(116 |
) |
|
|
(300 |
) |
Distributions from equity method investments |
|
136 |
|
|
|
169 |
|
Unrealized (gain)/loss on derivative contracts |
|
(259 |
) |
|
|
220 |
|
Gain on marketable securities |
|
(593 |
) |
|
|
- |
|
Other non-cash items, net |
|
53 |
|
|
|
32 |
|
Change in assets and liabilities, net of acquisitions and
divestitures: |
|
|
|
Receivables, net |
|
(687 |
) |
|
|
(625 |
) |
Inventories, net |
|
(484 |
) |
|
|
(745 |
) |
Accounts payable |
|
18 |
|
|
|
332 |
|
Other current assets |
|
(108 |
) |
|
|
(143 |
) |
Other current liabilities |
|
641 |
|
|
|
413 |
|
Change in pension and postretirement assets and liabilities,
net |
|
(120 |
) |
|
|
(162 |
) |
Net cash provided by operating activities |
|
3,150 |
|
|
|
2,516 |
|
|
|
|
|
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES |
|
|
|
Capital expenditures |
|
(780 |
) |
|
|
(621 |
) |
Acquisitions, net of cash received |
|
19 |
|
|
|
(3,978 |
) |
Proceeds from divestitures including equity method and marketable
security investments |
|
2,727 |
|
|
|
604 |
|
(Payments)/proceeds from investments and derivative
settlements |
|
(180 |
) |
|
|
585 |
|
Net cash provided by/(used in) investing activities |
|
1,786 |
|
|
|
(3,410 |
) |
|
|
|
|
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES |
|
|
|
Issuance of Commercial paper, maturities greater than 90 days |
|
67 |
|
|
|
- |
|
Repayments of Commercial paper, maturities greater than 90
days |
|
(67 |
) |
|
|
- |
|
Net (repayments)/issuances of short-term borrowings |
|
(1,070 |
) |
|
|
1,370 |
|
Long-term debt proceeds |
|
189 |
|
|
|
4,490 |
|
Long-term debt repayments |
|
(2,087 |
) |
|
|
(3,005 |
) |
Repurchases of Common Stock |
|
(659 |
) |
|
|
(1,838 |
) |
Dividends paid |
|
(1,581 |
) |
|
|
(1,457 |
) |
Other |
|
134 |
|
|
|
143 |
|
Net cash provided by/(used in) financing activities |
|
(5,074 |
) |
|
|
(297 |
) |
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and
restricted cash |
|
(133 |
) |
|
|
(167 |
) |
|
|
|
|
Cash, Cash Equivalents and Restricted Cash |
|
|
|
(Decrease) / increase |
|
(271 |
) |
|
|
(1,358 |
) |
Balance at beginning of period |
|
1,948 |
|
|
|
3,553 |
|
Balance at end of period |
$ |
1,677 |
|
|
$ |
2,195 |
|
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 (“U.S. 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. In the
first quarter of 2023, the company added to the non-GAAP definition
for divestitures the inclusion of changes from equity method
investment accounting to accounting for equity interests with
readily determinable fair values (“marketable securities”). In
addition, the company added to the non-GAAP definitions the
exclusion of gains or losses associated with marketable
securities.
- “Organic Net
Revenue” is defined as net revenues (the most comparable
U.S. GAAP financial measure) 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; mark-to-market impacts from
commodity, forecasted currency and equity method investment
transaction derivative contracts; inventory step-up charges; 2017
malware incident net recoveries; and incremental costs due to the
war in Ukraine. 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 (the most
comparable U.S. GAAP financial measures) 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, divestiture-related
costs, acquisition-related costs, and acquisition integration costs
and contingent consideration adjustments; remeasurement of net
monetary position; impacts from resolution of tax matters; the
European commission legal matter; impact from pension participation
changes; and costs associated with the JDE Peet's transaction. 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 (the most comparable U.S. GAAP financial
measure) 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 interest
rate swaps no longer designated as accounting cash flow hedges due
to changed financing and hedging plans; net earnings from
divestitures; mark-to-market unrealized gains or losses and
realized gains or losses from marketable securities; initial
impacts from enacted tax law changes; and gains or losses on equity
method investment transactions. 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 U.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 (the most comparable U.S. GAAP financial
measure). 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 U.S.
GAAP financial measures for the three and nine months ended
September 30, 2023 and September 30, 2022. 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, exits of major
product lines upon completion of a sale or licensing agreement. the
partial or full sale of an equity method investment and changes
from equity method investment accounting to accounting for
marketable securities. As the company records its share of JDE
Peet’s ongoing earnings on a one-quarter lag basis, any JDE Peet’s
ownership reductions are reflected as divestitures within the
company's non-GAAP results the following quarter.
Divestiture-related costs, which includes costs incurred in
relation to the preparation and completion (including one-time
costs such as severance related to elimination of stranded costs)
for the company's divestitures as defined above, also includes
costs incurred associated with the company's publicly announced
processes to sell businesses.
- The company's 2023 divestitures
include the April 3,2023 sale of JDEP shares and the March 2, 2023
sale of KDP shares and the change from equity method investment
accounting to accounting for marketable securities for the
company's remaining equity interest in KDP. See the section on
gains/losses on equity method investment transactions and
marketable securities below for more information.
- On July 7, 2022, the company
completed the sale of a business in Argentina including several
local gum and candy brands and a manufacturing facility. In
addition, the company's Kraft Heinz Company license agreement to
produce and sell Kraft mayonnaise in Latin America countries,
predominately Mexico, expired on September 1, 2022. The
divestitures of these businesses resulted in a year-over-year
reduction in net revenues of $1 million in the three months and $22
million in the nine months ended September 30, 2023. In addition,
the company incurred divestiture-related costs of $1 million in the
three months and $3 million in the nine months ended September 30,
2022.
- In 2022, the company announced its
intention to divest the company's developed market gum and global
Halls businesses. On December 16, 2022, the company
entered into an agreement to sell our developed market gum business
in North America and Europe for $1.4 billion. On October 1, 2023,
the company completed the sale to Perfetti Van Melle Group,
excluding the Portugal business which the company retained pending
regulatory approval. The company completed the sale of the Portugal
business to Perfetti Van Melle Group on October 23, 2023. The
company incurred divestiture-related costs of $14 million in the
three months and $66 million in the nine months ended September 30,
2023, and $5 million in the three months and $9 million in the nine
months ended September 30, 2022.
Acquisitions, Acquisition-related
costs and Acquisition integration costs and contingent
consideration adjustments
Acquisition-related costs, which includes transaction costs such as
third party advisor, investment banking and legal fees, also
includes one-time compensation expense related to the buyout of
non-vested employee stock ownership plan shares and realized gains
or losses from hedging activities associated with acquisition
funds. Acquisition integration costs and contingent consideration
adjustments include one-time costs related to the integration of
acquisitions as well as any adjustments made to the fair market
value of contingent compensation liabilities that have been
previously booked for earn-outs related to acquisitions that do not
relate to employee compensation expense. The company excludes these
items to better facilitate comparisons of its underlying operating
performance across periods.
On November 1, 2022, the company acquired 100%
of the equity of Grupo Bimbo's confectionery business, Ricolino,
located primarily in Mexico. The acquisition of Ricolino builds on
our continued prioritization of fast-growing snacking segments in
key geographies. The acquisition added incremental net revenues of
$180 million during the three months and $506 million during the
nine months ended September 30, 2023 and operating income of $15
million during the three months and $31 million during the nine
months ended September 30, 2023. The company incurred acquisition
integration costs of $14 million in the three months and $30
million in the nine months ended September 30, 2023, and $7 million
in the three months and nine months ended September 30, 2022. In
addition, the company incurred acquisition-related costs of $1
million in the nine months ended September 30, 2022.
On August 1, 2022, the company acquired 100% of
the equity of Clif Bar & Company (“Clif Bar”), a leading U.S.
maker of nutritious energy bars with organic ingredients. The
acquisition expands our global snacks bar business and complements
our refrigerated snacking and performance nutrition bar portfolios.
The acquisition added incremental net revenues of $71 million
during the three months and $529 million during the nine months
ended September 30,2023 and operating income of $11 million during
the three months and $81 million during the nine months ended
September 30, 2023. The company incurred acquisition integration
costs and contingent consideration adjustments of $37 million in
the three months and $92 million in the nine months ended September
30, 2023, and $16 million in the three months and nine months ended
September 30, 2022. These acquisition integration costs include an
increase to the contingent consideration liability due to changes
to underlying assumptions. An inventory step-up charge of $20
million was incurred in the three months and nine months ended
September 30, 2022. In addition, the company incurred
acquisition-related costs of $292 million in the three months and
$296 million in the nine months ended September 30, 2022. These
acquisition-related costs were primarily related to the buyout of
the non-vested employee stock ownership plan shares.
On January 3, 2022, the company acquired 100% of the equity of
Chipita Global S.A. (“Chipita”), a leading croissants and baked
snacks company in the Central and Eastern European markets. The
acquisition of Chipita offers a strategic complement to the
company's existing portfolio and advances its strategy to become
the global leader in broader snacking. The company incurred
acquisition integration costs of $5 million in the three months and
$15 million in the nine months ended September 30, 2023, and $14
million in the three months and $85 million in the nine months
ended September 30, 2022. In addition, the company incurred
acquisition-related costs of $21 million in the nine months ended
September 30, 2022.
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 integration costs of $1 million in the three months and
$3 million in the nine months ended September 30, 2023, and $1
million in the three months and nine months ended September 30,
2022.
On January 4, 2021, the company acquired the
remaining 93% of equity of Hu Master Holdings, a category leader in
premium chocolate in the United States, which provides a strategic
complement to the company's snacking portfolio in North America
through growth opportunities in chocolate and other offerings in
the well-being segment. The initial cash consideration paid was
$229 million, net of cash received, and the company may be required
to pay additional contingent consideration. The estimated fair
value of the contingent consideration obligation at the acquisition
date was $132 million and was determined using a Monte Carlo
simulation based on forecasted future results. During the third
quarter of 2021, the company recorded a $70 million reduction to
the liability due to changes in the expected pace of growth. During
the third quarter of 2022, the company recorded an additional $7
million reduction to the liability due to further changes to
forecasted future results.
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 company
incurred acquisition integration costs and contingent consideration
adjustments of $10 million in the three months and $11 million in
the nine months ended September 30, 2023, and $1 million in the
three months and nine months ended September 30, 2022. These
acquisition integration costs include an increase to the contingent
consideration liability due to changes to underlying
assumptions.
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 $16 million in the
three months and $48 million in the nine months ended September 30,
2023, and a gain of $10 million due to the sale of assets included
in the restructuring program as well as charges of $3 million in
the three months and charges of $8 million in the nine months ended
September 30, 2022. This activity was recorded within asset
impairment and exit costs and benefit plan non-service income.
These charges were for severance and related costs, non-cash asset
write-downs (including accelerated depreciation and asset
impairments) and other adjustments, including any gains on sale of
restructuring program assets.
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 $4 million in the three
months and $13 million in the nine months ended September 30, 2023,
and $23 million in the three months and $62 million in the nine
months ended September 30, 2022.
Intangible asset impairment
charges
During the company's 2023 annual testing of indefinite-life
intangible assets, the company recorded intangible asset impairment
charges of $26 million in the third quarter of 2023 related to a
chocolate brand in the North America segment and a biscuit brand in
the Europe segment. The impairments were driven by changes in
projections as a result of current and expected operating
environment.
During the company's 2022 annual testing of
indefinite-life intangible assets, the company recorded a
$23 million intangible asset impairment charge in the third
quarter of 2022 related to one brand. The impairment arose due to
lower than expected growth and profitability in a local biscuit
brand in AMEA.
During the first quarter of 2022, the company
recorded a $78 million intangible asset impairment charge in AMEA
related to one local biscuit brand sold in select markets in AMEA
and Europe.
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 and
equity method investment transaction derivative contracts from its
non-GAAP earnings measures. The mark-to-market impacts of commodity
and forecasted currency transaction derivatives are excluded until
such time that the related exposures impact the company's operating
results. Since the company purchases commodity and forecasted
currency transaction contracts to mitigate price volatility
primarily for inventory requirements in future periods, the company
makes this adjustment to remove the volatility of these future
inventory purchases on current operating results to facilitate
comparisons of its underlying operating performance across periods.
The company excludes equity method investment derivative contract
settlements as they represent protection of value for future
divestitures. The company recorded net unrealized gains on
commodity, forecasted currency and equity method transaction
derivatives of $20 million in the three months and $236 million in
the nine months ended September 30, 2023, and recorded net
unrealized losses of $120 million in the three months and $220
million in the nine months ended September 30, 2022.
Remeasurement of net monetary
position
The company translates the results of operations of its
subsidiaries from multiple currencies using average exchange rates
during each period and translate balance sheet accounts using
exchange rates at the end of each period. The company records
currency translation adjustments as a component of equity (except
for highly inflationary currencies) and realized exchange gains and
losses on transactions in earnings.
Highly inflationary accounting is triggered when
a country’s three-year cumulative inflation rate exceeds 100%. It
requires the remeasurement of financial statements of subsidiaries
in the country, from the functional currency of the subsidiary to
our U.S. dollar reporting currency, with currency remeasurement
gains or losses recorded in earnings. At this time, within the
company's consolidated entities, Argentina and Türkiye are
accounted for as highly inflationary economies. For Argentina, the
company recorded remeasurement losses of $20 million in the three
months and $41 million in the nine months ended September 30, 2023,
and $12 million in the three months and $27 million in the nine
months ended September 30, 2022 related to the revaluation of the
Argentinean peso denominated net monetary position over these
periods. For Türkiye, the company recorded remeasurement loss of $2
million in the three months and $19 million in the nine months
ended September 30, 2023, and a gain of $1 million in the three
months and nine months ended September 30, 2022 related to the
revaluation of the Turkish lira denominated net monetary position
over these periods. The company recorded these charges for
Argentina and Türkiye within selling, general and administrative
expenses.
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 $526 million
and requiring pro-rata monthly payments over 20 years. The company
began making monthly payments during the third quarter of 2019. In
connection with the discounted long-term liability, the company
recorded accreted interest of $3 million in the three months and $8
million in the nine months ended September 30, 2023, and $3 million
in the three months and $8 million in the nine months ended
September 30, 2022 within interest and other expense, net. As of
September 30, 2023, the remaining discounted withdrawal liability
was $332 million, with $15 million recorded in other current
liabilities and $317 million recorded in long-term other
liabilities.
Incremental costs due to the war in
Ukraine
In February 2022, Russia began a military invasion of Ukraine and
the company closed its operations and facilities in Ukraine. In
March 2022, the company's two Ukrainian manufacturing facilities in
Trostyanets and Vyshhorod were significantly damaged. During the
first quarter of 2022, the company evaluated and impaired these and
other assets. The company recorded $143 million of total
expenses ($145 million after-tax) incurred as a direct result
of the war. The company reversed $22 million during the remainder
of 2022 and $2 million during the first nine months of 2023 of
previously recorded charges primarily as a result of higher than
expected collection of trade receivables and inventory recoveries.
The company continues to make targeted repairs on both our plants
and have partially reopened and restarted limited production in
both plants.
Loss on debt extinguishment and
related expenses
On March 18, 2022, the company completed a tender offer and
redeemed long-term U.S. dollar denominated notes totaling $987
million. The company recorded a $129 million loss on debt
extinguishment and related expenses within interest and other
expense, net, consisting of $38 million paid in excess of carrying
value of the debt and from recognizing unamortized discounts and
deferred financing costs in earnings and $91 million in unamortized
forward starting swap losses in earnings at the time of the debt
extinguishment.
Initial impacts from enacted tax law
changes
The company excludes initial impacts from enacted tax law changes
from its non-GAAP financial measures as they do not reflect its
ongoing tax obligations under the enacted tax law changes. Initial
impacts include items such as the remeasurement of deferred tax
balances and the transition tax from the 2017 U.S. tax reform.
The company recorded net tax expense from the
increase of its deferred tax liabilities resulting from enacted tax
legislation of $13 million in the three months and $15 million in
the nine months ended September 30, 2023 and $13 million in the
three months and $22 million in the nine months ended September 30,
2022.
Gains and losses on marketable
securities and equity method investment
transactions
Keurig Dr Pepper transactions
Our reduction in ownership in Keurig Dr Pepper Inc. (Nasdaq: "KDP")
during the first quarter of 2023, to below 5% of the outstanding
shares, resulted in a change of accounting for our KDP investment,
from equity method investment accounting to accounting for equity
interests with readily determinable fair values ("marketable
securities") as the company no longer has significant influence.
These marketable securities are measured at fair value based on
quoted prices in active markets for identical assets (Level 1). Due
to the change in accounting for the company's KDP investment, from
equity method investment accounting to accounting as marketable
securities, the company has treated the historical equity method
earnings from KDP as a divestiture under the definitions of our
non-GAAP financial measures. Therefore, the company has removed the
equity method investment net earnings for KDP from its non-GAAP
financial results for all historical periods presented to
facilitate comparison of results.
On July 13, 2023, the company sold 23 million
shares, the remainder of its shares of KDP. The company received
proceeds of approximately $704 million.
On June 8, 2023, the company sold 23 million
shares of KDP, which reduced our ownership by 1.6%, from 3.2% to
1.6% of the total outstanding shares. The company received proceeds
of approximately $708 million.
On March 2, 2023, the company sold 30 million
shares of KDP, which reduced the company's ownership interest by
2.1%, from 5.3% to 3.2% of the total outstanding shares. The
company received proceeds of approximately $1.0 billion and
recorded a pre-tax gain of $493 million (or $366 million after tax)
during the first quarter of 2023.
In addition, the company has recorded a total
gain on marketable securities of $593 million for the nine months
ended September 30, 2023. In addition, the company recorded
dividend income of $13 million for the nine months ended September
30, 2023.
JDEP transactions
On March 30, 2023, the company issued options to sell shares of
JDEP in tranches equivalent to approximately 7.7 million shares.
These options were exercisable at their maturities which were
between July 30, 2023 and September 29, 2023, with strike prices
ranging from €26.10 to €28.71 per share. During the three months
ended September 30, 2023, options were exercised on 2.2 million
shares, which reduced the company's ownership by 0.4%, from 18.1%
to 17.7% of the total outstanding shares. The company received cash
proceeds of €57 million ($62 million) and recorded a loss of €3
million ($4 million) for these sales during the three months ended
September 30, 2023. The company continues to have board
representation with two directors on JDEP's Board of Directors and
have retained certain additional governance rights. As the company
continues to have significant influence, the company will continue
to account for the company's investment in JDEP under the equity
method. As the company records its share of JDEP's ongoing earnings
on a one-quarter lag basis, any JDEP's ownership reductions are
reflected as divestitures within non-GAAP financial results the
following quarter. As such, the company will recast divestitures
within its non-GAAP financial results to reflect this sale of JDE
Peet's shares in the fourth quarter of 2023.
On April 3, 2023, the company sold approximately
7.7 million shares of JDEP, which reduced the company's ownership
interest by 1.6%, from 19.7% to 18.1% of the total outstanding
shares. The company received €198 million ($217 million)
of proceeds and recorded a loss of €18 million ($19 million) on
this sale during the second quarter of 2023.
On May 8, 2022, the company sold approximately
18.6 million of our JDE Peet’s shares back to JDE Peet’s, which
reduced the company's ownership interest by approximately 3% to
19.8%. The company received €500 million ($529 million) of proceeds
and recorded a loss of €8 million ($8 million) on this sale during
the second quarter of 2022.
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, restructuring program
costs and initial impacts from enacted tax law changes.
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 2023 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 2023
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 2023 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 2023 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 September 30,
2023 |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
1,305 |
|
|
$ |
1,791 |
|
|
$ |
3,086 |
|
|
$ |
2,847 |
|
|
$ |
9,029 |
|
Acquisitions |
|
(153 |
) |
|
|
- |
|
|
|
- |
|
|
|
(71 |
) |
|
|
(224 |
) |
Currency |
|
80 |
|
|
|
116 |
|
|
|
(30 |
) |
|
|
6 |
|
|
|
172 |
|
Organic (Non-GAAP) |
$ |
1,232 |
|
|
$ |
1,907 |
|
|
$ |
3,056 |
|
|
$ |
2,782 |
|
|
$ |
8,977 |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30,
2022 |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
913 |
|
|
$ |
1,704 |
|
|
$ |
2,649 |
|
|
$ |
2,497 |
|
|
$ |
7,763 |
|
Divestitures |
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1 |
) |
Organic (Non-GAAP) |
$ |
912 |
|
|
$ |
1,704 |
|
|
$ |
2,649 |
|
|
$ |
2,497 |
|
|
$ |
7,762 |
|
|
|
|
|
|
|
|
|
|
|
$ Change - Reported (GAAP) |
$ |
392 |
|
|
$ |
87 |
|
|
$ |
437 |
|
|
$ |
350 |
|
|
$ |
1,266 |
|
$ Change - Organic (Non-GAAP) |
|
320 |
|
|
|
203 |
|
|
|
407 |
|
|
|
285 |
|
|
|
1,215 |
|
|
|
|
|
|
|
|
|
|
|
% Change - Reported (GAAP) |
|
42.9 |
% |
|
|
5.1 |
% |
|
|
16.5 |
% |
|
|
14.0 |
% |
|
|
16.3 |
% |
Divestitures |
|
0.2 |
pp |
|
|
- |
pp |
|
|
- |
pp |
|
|
- |
pp |
|
|
- |
pp |
Acquisitions |
|
(16.8 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2.9 |
) |
|
|
(2.8 |
) |
Currency |
|
8.8 |
|
|
|
6.8 |
|
|
|
(1.1 |
) |
|
|
0.3 |
|
|
|
2.2 |
|
% Change - Organic (Non-GAAP) |
|
35.1 |
% |
|
|
11.9 |
% |
|
|
15.4 |
% |
|
|
11.4 |
% |
|
|
15.7 |
% |
|
|
|
|
|
|
|
|
|
|
Vol/Mix |
|
3.6 |
pp |
|
|
3.3 |
pp |
|
|
3.3 |
pp |
|
|
4.6 |
pp |
|
|
3.8 |
pp |
Pricing |
|
31.5 |
|
|
|
8.6 |
|
|
|
12.1 |
|
|
|
6.8 |
|
|
|
11.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin
America |
|
AMEA |
|
Europe |
|
North
America |
|
Mondelēz
International |
For the Nine Months Ended September 30,
2023 |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
3,744 |
|
|
$ |
5,339 |
|
|
$ |
9,319 |
|
|
$ |
8,300 |
|
|
$ |
26,702 |
|
Acquisitions |
|
(446 |
) |
|
|
- |
|
|
|
- |
|
|
|
(529 |
) |
|
|
(975 |
) |
Currency |
|
260 |
|
|
|
430 |
|
|
|
198 |
|
|
|
32 |
|
|
|
920 |
|
Organic (Non-GAAP) |
$ |
3,558 |
|
|
$ |
5,769 |
|
|
$ |
9,517 |
|
|
$ |
7,803 |
|
|
$ |
26,647 |
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30,
2022 |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
2,615 |
|
|
$ |
5,106 |
|
|
$ |
8,210 |
|
|
$ |
6,870 |
|
|
$ |
22,801 |
|
Divestitures |
|
(22 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(22 |
) |
Organic (Non-GAAP) |
$ |
2,593 |
|
|
$ |
5,106 |
|
|
$ |
8,210 |
|
|
$ |
6,870 |
|
|
$ |
22,779 |
|
|
|
|
|
|
|
|
|
|
|
$ Change - Reported (GAAP) |
$ |
1,129 |
|
|
$ |
233 |
|
|
$ |
1,109 |
|
|
$ |
1,430 |
|
|
$ |
3,901 |
|
$ Change - Organic (Non-GAAP) |
|
965 |
|
|
|
663 |
|
|
|
1,307 |
|
|
|
933 |
|
|
|
3,868 |
|
|
|
|
|
|
|
|
|
|
|
% Change - Reported (GAAP) |
|
43.2 |
% |
|
|
4.6 |
% |
|
|
13.5 |
% |
|
|
20.8 |
% |
|
|
17.1 |
% |
Divestitures |
|
1.2 |
pp |
|
|
- |
pp |
|
|
- |
pp |
|
|
- |
pp |
|
|
0.1 |
pp |
Acquisitions |
|
(17.2 |
) |
|
|
- |
|
|
|
- |
|
|
|
(7.7 |
) |
|
|
(4.3 |
) |
Currency |
|
10.0 |
|
|
|
8.4 |
|
|
|
2.4 |
|
|
|
0.5 |
|
|
|
4.1 |
|
% Change - Organic (Non-GAAP) |
|
37.2 |
% |
|
|
13.0 |
% |
|
|
15.9 |
% |
|
|
13.6 |
% |
|
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
Vol/Mix |
|
4.5 |
pp |
|
|
4.2 |
pp |
|
|
- |
pp |
|
|
3.0 |
pp |
|
|
2.4 |
pp |
Pricing |
|
32.7 |
|
|
|
8.8 |
|
|
|
15.9 |
|
|
|
10.6 |
|
|
|
14.6 |
|
|
|
|
|
|
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 September 30,
2023 |
|
|
|
|
|
Reported (GAAP) |
$ |
3,527 |
|
|
$ |
5,502 |
|
|
$ |
9,029 |
|
Acquisitions |
|
(153 |
) |
|
|
(71 |
) |
|
|
(224 |
) |
Currency |
|
308 |
|
|
|
(136 |
) |
|
|
172 |
|
Organic (Non-GAAP) |
$ |
3,682 |
|
|
$ |
5,295 |
|
|
$ |
8,977 |
|
|
|
|
|
|
|
For the Three Months Ended September 30,
2022 |
|
|
|
|
|
Reported (GAAP) |
$ |
3,094 |
|
|
$ |
4,669 |
|
|
$ |
7,763 |
|
Divestitures |
|
(1 |
) |
|
|
- |
|
|
|
(1 |
) |
Organic (Non-GAAP) |
$ |
3,093 |
|
|
$ |
4,669 |
|
|
$ |
7,762 |
|
|
|
|
|
|
|
$
Change - Reported (GAAP) |
$ |
433 |
|
|
$ |
833 |
|
|
$ |
1,266 |
|
$
Change - Organic (Non-GAAP) |
|
589 |
|
|
|
626 |
|
|
|
1,215 |
|
|
|
|
|
|
|
%
Change - Reported (GAAP) |
|
14.0 |
% |
|
|
17.8 |
% |
|
|
16.3 |
% |
Divestitures |
|
- |
pp |
|
|
- |
pp |
|
|
- |
pp |
Acquisitions |
|
(5.0 |
) |
|
|
(1.5 |
) |
|
|
(2.8 |
) |
Currency |
|
10.0 |
|
|
|
(2.9 |
) |
|
|
2.2 |
|
%
Change - Organic (Non-GAAP) |
|
19.0 |
% |
|
|
13.4 |
% |
|
|
15.7 |
% |
|
|
|
|
|
|
Vol/Mix |
|
3.4 |
pp |
|
|
3.9 |
pp |
|
|
3.8 |
pp |
Pricing |
|
15.6 |
|
|
|
9.5 |
|
|
|
11.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging
Markets |
|
Developed
Markets |
|
Mondelēz
International |
For the Nine Months Ended September 30,
2023 |
|
|
|
|
|
Reported (GAAP) |
$ |
10,431 |
|
|
$ |
16,271 |
|
|
$ |
26,702 |
|
Acquisitions |
|
(446 |
) |
|
|
(529 |
) |
|
|
(975 |
) |
Currency |
|
843 |
|
|
|
77 |
|
|
|
920 |
|
Organic (Non-GAAP) |
$ |
10,828 |
|
|
$ |
15,819 |
|
|
$ |
26,647 |
|
|
|
|
|
|
|
For the Nine Months Ended September 30,
2022 |
|
|
|
|
|
Reported (GAAP) |
$ |
8,864 |
|
|
$ |
13,937 |
|
|
$ |
22,801 |
|
Divestitures |
|
(22 |
) |
|
|
- |
|
|
|
(22 |
) |
Organic (Non-GAAP) |
$ |
8,842 |
|
|
$ |
13,937 |
|
|
$ |
22,779 |
|
|
|
|
|
|
|
$
Change - Reported (GAAP) |
$ |
1,567 |
|
|
$ |
2,334 |
|
|
$ |
3,901 |
|
$
Change - Organic (Non-GAAP) |
|
1,986 |
|
|
|
1,882 |
|
|
|
3,868 |
|
|
|
|
|
|
|
%
Change - Reported (GAAP) |
|
17.7 |
% |
|
|
16.7 |
% |
|
|
17.1 |
% |
Divestitures |
|
0.3 |
pp |
|
|
- |
pp |
|
|
0.1 |
pp |
Acquisitions |
|
(5.0 |
) |
|
|
(3.8 |
) |
|
|
(4.3 |
) |
Currency |
|
9.5 |
|
|
|
0.6 |
|
|
|
4.1 |
|
%
Change - Organic (Non-GAAP) |
|
22.5 |
% |
|
|
13.5 |
% |
|
|
17.0 |
% |
|
|
|
|
|
|
Vol/Mix |
|
3.4 |
pp |
|
|
1.7 |
pp |
|
|
2.4 |
pp |
Pricing |
|
19.1 |
|
|
|
11.8 |
|
|
|
14.6 |
|
|
|
|
|
|
|
|
Schedule 5a |
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 September 30, 2023 |
|
Net
Revenues |
|
Gross
Profit |
|
Gross
Profit
Margin |
|
Operating
Income |
|
Operating
Income
Margin |
Reported (GAAP) |
$ |
9,029 |
|
|
$ |
3,494 |
|
|
38.7 |
% |
|
$ |
1,379 |
|
|
15.3 |
% |
Simplify to Grow Program |
|
- |
|
|
|
2 |
|
|
|
|
|
20 |
|
|
|
Intangible asset impairment charges |
|
- |
|
|
|
- |
|
|
|
|
|
26 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
(21 |
) |
|
|
|
|
(19 |
) |
|
|
Acquisition integration costs and contingent consideration
adjustments |
|
- |
|
|
|
6 |
|
|
|
|
|
68 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
1 |
|
|
|
|
|
14 |
|
|
|
Incremental costs due to war in Ukraine |
|
- |
|
|
|
1 |
|
|
|
|
|
1 |
|
|
|
Remeasurement of net monetary position |
|
- |
|
|
|
- |
|
|
|
|
|
22 |
|
|
|
Adjusted (Non-GAAP) |
$ |
9,029 |
|
|
$ |
3,483 |
|
|
38.6 |
% |
|
$ |
1,511 |
|
|
16.7 |
% |
Currency |
|
|
|
66 |
|
|
|
|
|
49 |
|
|
|
Adjusted @ Constant FX (Non-GAAP) |
|
|
$ |
3,549 |
|
|
|
|
$ |
1,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2022 |
|
Net
Revenues |
|
Gross
Profit |
|
Gross
Profit
Margin |
|
Operating
Income |
|
Operating
Income
Margin |
Reported (GAAP) |
$ |
7,763 |
|
|
$ |
2,613 |
|
|
33.7 |
% |
|
$ |
679 |
|
|
8.7 |
% |
Simplify to Grow Program |
|
- |
|
|
|
12 |
|
|
|
|
|
16 |
|
|
|
Intangible asset impairment charges |
|
- |
|
|
|
- |
|
|
|
|
|
23 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
184 |
|
|
|
|
|
186 |
|
|
|
Acquisition integration costs and contingent consideration
adjustments |
|
- |
|
|
|
1 |
|
|
|
|
|
27 |
|
|
|
Inventory step-up |
|
- |
|
|
|
20 |
|
|
|
|
|
20 |
|
|
|
Acquisition-related costs |
|
- |
|
|
|
72 |
|
|
|
|
|
292 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
1 |
|
|
|
|
|
6 |
|
|
|
Operating income from divestitures |
|
(1 |
) |
|
|
- |
|
|
|
|
|
- |
|
|
|
Incremental costs due to war in Ukraine |
|
- |
|
|
|
(2 |
) |
|
|
|
|
(7 |
) |
|
|
Remeasurement of net monetary position |
|
- |
|
|
|
- |
|
|
|
|
|
11 |
|
|
|
Adjusted (Non-GAAP) |
$ |
7,762 |
|
|
$ |
2,901 |
|
|
37.4 |
% |
|
$ |
1,253 |
|
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
|
|
Operating
Income |
|
|
$ Change - Reported (GAAP) |
|
|
$ |
881 |
|
|
|
|
$ |
700 |
|
|
|
$ Change - Adjusted (Non-GAAP) |
|
|
|
582 |
|
|
|
|
|
258 |
|
|
|
$ Change - Adjusted @ Constant FX (Non-GAAP) |
|
|
|
648 |
|
|
|
|
|
307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change - Reported (GAAP) |
|
|
|
33.7 |
% |
|
|
|
|
103.1 |
% |
|
|
% Change - Adjusted (Non-GAAP) |
|
|
|
20.1 |
% |
|
|
|
|
20.6 |
% |
|
|
% Change - Adjusted @ Constant FX (Non-GAAP) |
|
|
|
22.3 |
% |
|
|
|
|
24.5 |
% |
|
|
|
|
|
|
|
|
|
Schedule
5b |
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 Nine Months Ended September 30, 2023 |
|
Net
Revenues |
|
Gross
Profit |
|
Gross
Profit
Margin |
|
Operating
Income |
|
Operating
Income Margin |
Reported (GAAP) |
$ |
26,702 |
|
|
$ |
10,294 |
|
|
38.6 |
% |
|
$ |
4,309 |
|
|
16.1 |
% |
Simplify to
Grow Program |
|
- |
|
|
|
4 |
|
|
|
|
|
61 |
|
|
|
Intangible
asset impairment charges |
|
- |
|
|
|
- |
|
|
|
|
|
26 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
(238 |
) |
|
|
|
|
(239 |
) |
|
|
Acquisition
integration costs and contingent consideration adjustments |
|
- |
|
|
|
15 |
|
|
|
|
|
143 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
1 |
|
|
|
|
|
66 |
|
|
|
Incremental
costs due to war in Ukraine |
|
- |
|
|
|
(1 |
) |
|
|
|
|
(2 |
) |
|
|
Remeasurement of net monetary position |
|
- |
|
|
|
- |
|
|
|
|
|
60 |
|
|
|
Adjusted (Non-GAAP) |
$ |
26,702 |
|
|
$ |
10,075 |
|
|
37.7 |
% |
|
$ |
4,424 |
|
|
16.6 |
% |
Currency |
|
|
|
326 |
|
|
|
|
|
183 |
|
|
|
Adjusted @ Constant FX (Non-GAAP) |
|
|
$ |
10,401 |
|
|
|
|
$ |
4,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2022 |
|
Net
Revenues |
|
Gross
Profit |
|
Gross
Profit
Margin |
|
Operating Income |
|
Operating
Income
Margin |
Reported (GAAP) |
$ |
22,801 |
|
|
$ |
8,237 |
|
|
36.1 |
% |
|
$ |
2,700 |
|
|
11.8 |
% |
Simplify to
Grow Program |
|
- |
|
|
|
33 |
|
|
|
|
|
69 |
|
|
|
Intangible
asset impairment charges |
|
- |
|
|
|
- |
|
|
|
|
|
101 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
265 |
|
|
|
|
|
268 |
|
|
|
Acquisition
integration costs and contingent consideration adjustments |
|
- |
|
|
|
2 |
|
|
|
|
|
96 |
|
|
|
Inventory
step-up |
|
- |
|
|
|
20 |
|
|
|
|
|
20 |
|
|
|
Acquisition-related costs |
|
- |
|
|
|
72 |
|
|
|
|
|
318 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
3 |
|
|
|
|
|
12 |
|
|
|
Operating
income from divestitures |
|
(22 |
) |
|
|
(3 |
) |
|
|
|
|
(4 |
) |
|
|
Incremental
costs due to war in Ukraine |
|
- |
|
|
|
35 |
|
|
|
|
|
121 |
|
|
|
Remeasurement of net monetary position |
|
- |
|
|
|
- |
|
|
|
|
|
26 |
|
|
|
Adjusted (Non-GAAP) |
$ |
22,779 |
|
|
$ |
8,664 |
|
|
38.0 |
% |
|
$ |
3,727 |
|
|
16.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
|
|
Operating
Income |
|
|
$
Change - Reported (GAAP) |
|
|
$ |
2,057 |
|
|
|
|
$ |
1,609 |
|
|
|
$
Change - Adjusted (Non-GAAP) |
|
|
|
1,411 |
|
|
|
|
|
697 |
|
|
|
$
Change - Adjusted @ Constant FX (Non-GAAP) |
|
|
|
1,737 |
|
|
|
|
|
880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change - Reported (GAAP) |
|
|
|
25.0 |
% |
|
|
|
|
59.6 |
% |
|
|
%
Change - Adjusted (Non-GAAP) |
|
|
|
16.3 |
% |
|
|
|
|
18.7 |
% |
|
|
%
Change - Adjusted @ Constant FX (Non-GAAP) |
|
|
|
20.0 |
% |
|
|
|
|
23.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 6a |
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 September 30, 2023 |
|
Operating Income |
|
Benefit plan non-service expense /
(income) |
|
Interest and other expense, net |
|
Marketable securities (gains)/losses |
|
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) |
$ |
1,379 |
|
|
$ |
(19 |
) |
|
$ |
66 |
|
|
$ |
1 |
|
$ |
1,331 |
|
|
$ |
354 |
|
|
26.6 |
% |
|
$ |
(1 |
) |
|
$ |
(10 |
) |
|
$ |
4 |
|
$ |
984 |
|
|
$ |
0.72 |
|
Simplify to Grow Program |
|
20 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
20 |
|
|
|
2 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
18 |
|
|
|
0.01 |
|
Intangible asset impairment charges |
|
26 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
26 |
|
|
|
6 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
20 |
|
|
|
0.02 |
|
Mark-to-market (gains)/losses from derivatives |
|
(19 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(19 |
) |
|
|
(9 |
) |
|
|
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
(11 |
) |
|
|
(0.01 |
) |
Acquisition integration costs and contingent consideration
adjustments |
|
68 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
68 |
|
|
|
17 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
51 |
|
|
|
0.04 |
|
Divestiture-related costs |
|
14 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
14 |
|
|
|
14 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Incremental costs due to war in Ukraine |
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
1 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
1 |
|
|
|
- |
|
Remeasurement of net monetary position |
|
22 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
22 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
22 |
|
|
|
0.02 |
|
Impact from pension participation changes |
|
- |
|
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
|
3 |
|
|
|
1 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
2 |
|
|
|
- |
|
Initial impacts from enacted tax law changes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(13 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
13 |
|
|
|
0.01 |
|
Gain on marketable securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
21 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(21 |
) |
|
|
(0.02 |
) |
Equity method investee items |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
(38 |
) |
|
|
- |
|
|
38 |
|
|
|
0.03 |
|
Adjusted (Non-GAAP) |
$ |
1,511 |
|
|
$ |
(19 |
) |
|
$ |
63 |
|
|
$ |
1 |
|
$ |
1,466 |
|
|
$ |
393 |
|
|
26.8 |
% |
|
$ |
- |
|
|
$ |
(48 |
) |
|
$ |
4 |
|
$ |
1,117 |
|
|
$ |
0.82 |
|
Currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40 |
|
|
|
0.02 |
|
Adjusted @ Constant FX (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,157 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2022 |
|
Operating Income |
|
Benefit plan non-service expense / (income) |
|
Interest and other expense, net |
|
Marketable securities (gains)/losses |
|
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) |
$ |
679 |
|
|
$ |
(30 |
) |
|
$ |
71 |
|
|
$ |
- |
|
$ |
638 |
|
|
$ |
184 |
|
|
28.8 |
% |
|
$ |
6 |
|
|
$ |
(85 |
) |
|
$ |
1 |
|
$ |
532 |
|
|
$ |
0.39 |
|
Simplify to Grow Program |
|
16 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
16 |
|
|
|
3 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
13 |
|
|
|
0.01 |
|
Intangible asset impairment charges |
|
23 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
23 |
|
|
|
6 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
17 |
|
|
|
0.01 |
|
Mark-to-market (gains)/losses from derivatives |
|
186 |
|
|
|
- |
|
|
|
69 |
|
|
|
- |
|
|
117 |
|
|
|
22 |
|
|
|
|
|
(3 |
) |
|
|
- |
|
|
|
- |
|
|
98 |
|
|
|
0.07 |
|
Acquisition integration costs and contingent consideration
adjustments |
|
27 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
28 |
|
|
|
6 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
22 |
|
|
|
0.02 |
|
Inventory step-up |
|
20 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
20 |
|
|
|
5 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
15 |
|
|
|
0.01 |
|
Acquisition-related costs |
|
292 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
292 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
292 |
|
|
|
0.21 |
|
Divestiture-related costs |
|
6 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
6 |
|
|
|
2 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
4 |
|
|
|
- |
|
Net earnings from divestitures |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(2 |
) |
|
|
|
|
- |
|
|
|
18 |
|
|
|
- |
|
|
(16 |
) |
|
|
(0.01 |
) |
Incremental costs due to war in Ukraine |
|
(7 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(7 |
) |
|
|
(2 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(5 |
) |
|
|
- |
|
Remeasurement of net monetary position |
|
11 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
11 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
11 |
|
|
|
0.01 |
|
Impact from pension participation changes |
|
- |
|
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
|
3 |
|
|
|
1 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
2 |
|
|
|
- |
|
Initial impacts from enacted tax law changes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(13 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
13 |
|
|
|
0.01 |
|
Loss on equity method investment transactions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
(1 |
) |
|
|
|
|
(3 |
) |
|
|
- |
|
|
|
- |
|
|
4 |
|
|
|
- |
|
Equity method investee items |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
|
(13 |
) |
|
|
(0.01 |
) |
Adjusted (Non-GAAP) |
$ |
1,253 |
|
|
$ |
(30 |
) |
|
$ |
136 |
|
|
$ |
- |
|
$ |
1,147 |
|
|
$ |
211 |
|
|
18.4 |
% |
|
$ |
- |
|
|
$ |
(54 |
) |
|
$ |
1 |
|
$ |
989 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 6b |
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 Nine Months Ended September 30, 2023 |
|
Operating Income |
|
Benefit plan non-service expense /
(income) |
|
Interest and other expense, net |
|
Marketable securities (gains)/losses |
|
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) |
$ |
4,309 |
|
|
$ |
(60 |
) |
|
$ |
258 |
|
|
$ |
(606 |
) |
|
$ |
4,717 |
|
|
$ |
1,280 |
|
|
27.1 |
% |
|
$ |
(465 |
) |
|
$ |
(116 |
) |
|
$ |
9 |
|
$ |
4,009 |
|
|
$ |
2.92 |
|
Simplify to Grow Program |
|
61 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
61 |
|
|
|
9 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
52 |
|
|
|
0.04 |
|
Intangible asset impairment charges |
|
26 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26 |
|
|
|
6 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
20 |
|
|
|
0.02 |
|
Mark-to-market (gains)/losses from derivatives |
|
(239 |
) |
|
|
- |
|
|
|
(6 |
) |
|
|
- |
|
|
|
(233 |
) |
|
|
(38 |
) |
|
|
|
|
3 |
|
|
|
- |
|
|
|
- |
|
|
(198 |
) |
|
|
(0.14 |
) |
Acquisition integration costs and contingent consideration
adjustments |
|
143 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
143 |
|
|
|
39 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
104 |
|
|
|
0.08 |
|
Divestiture-related costs |
|
66 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
66 |
|
|
|
22 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
44 |
|
|
|
0.03 |
|
Net earnings from divestitures |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4 |
) |
|
|
|
|
- |
|
|
|
28 |
|
|
|
- |
|
|
(24 |
) |
|
|
(0.02 |
) |
Incremental costs due to war in Ukraine |
|
(2 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(2 |
) |
|
|
- |
|
Remeasurement of net monetary position |
|
60 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
60 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
60 |
|
|
|
0.04 |
|
Impact from pension participation changes |
|
- |
|
|
|
- |
|
|
|
(8 |
) |
|
|
- |
|
|
|
8 |
|
|
|
2 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
6 |
|
|
|
- |
|
Loss on debt extinguishment and related expenses |
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
1 |
|
|
|
- |
|
Initial impacts from enacted tax law changes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(15 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
15 |
|
|
|
0.01 |
|
Gain on marketable securities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
593 |
|
|
|
(593 |
) |
|
|
(135 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(458 |
) |
|
|
(0.33 |
) |
Gain on equity method investment transactions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(124 |
) |
|
|
|
|
462 |
|
|
|
- |
|
|
|
- |
|
|
(338 |
) |
|
|
(0.25 |
) |
Equity method investee items |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
(82 |
) |
|
|
- |
|
|
82 |
|
|
|
0.06 |
|
Adjusted (Non-GAAP) |
$ |
4,424 |
|
|
$ |
(60 |
) |
|
$ |
243 |
|
|
$ |
(13 |
) |
|
$ |
4,254 |
|
|
$ |
1,042 |
|
|
24.5 |
% |
|
$ |
- |
|
|
$ |
(170 |
) |
|
$ |
9 |
|
$ |
3,373 |
|
|
$ |
2.46 |
|
Currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
173 |
|
|
|
0.12 |
|
Adjusted @ Constant FX (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,546 |
|
|
$ |
2.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2022 |
|
Operating Income |
|
Benefit plan non-service expense / (income) |
|
Interest and other expense, net |
|
Marketable securities (gains)/losses |
|
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) |
$ |
2,700 |
|
|
$ |
(93 |
) |
|
$ |
337 |
|
|
$ |
- |
|
|
$ |
2,456 |
|
|
$ |
595 |
|
|
24.2 |
% |
|
$ |
19 |
|
|
$ |
(300 |
) |
|
$ |
8 |
|
$ |
2,134 |
|
|
$ |
1.54 |
|
Simplify to Grow Program |
|
69 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
70 |
|
|
|
16 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
54 |
|
|
|
0.04 |
|
Intangible asset impairment charges |
|
101 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
101 |
|
|
|
25 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
76 |
|
|
|
0.05 |
|
Mark-to-market (gains)/losses from derivatives |
|
268 |
|
|
|
- |
|
|
|
51 |
|
|
|
- |
|
|
|
217 |
|
|
|
41 |
|
|
|
|
|
(3 |
) |
|
|
- |
|
|
|
- |
|
|
179 |
|
|
|
0.13 |
|
Acquisition integration costs and contingent consideration
adjustments |
|
96 |
|
|
|
- |
|
|
|
(4 |
) |
|
|
- |
|
|
|
100 |
|
|
|
57 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
43 |
|
|
|
0.03 |
|
Inventory step-up |
|
20 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
20 |
|
|
|
5 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
15 |
|
|
|
0.01 |
|
Acquisition-related costs |
|
318 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
318 |
|
|
|
3 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
315 |
|
|
|
0.23 |
|
Divestiture-related costs |
|
12 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
12 |
|
|
|
3 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
9 |
|
|
|
0.01 |
|
Net earnings from divestitures |
|
(4 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4 |
) |
|
|
(19 |
) |
|
|
|
|
- |
|
|
|
116 |
|
|
|
- |
|
|
(101 |
) |
|
|
(0.07 |
) |
Incremental costs due to war in Ukraine |
|
121 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
121 |
|
|
|
(4 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
125 |
|
|
|
0.09 |
|
Remeasurement of net monetary position |
|
26 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
26 |
|
|
|
0.02 |
|
Impact from pension participation changes |
|
- |
|
|
|
- |
|
|
|
(8 |
) |
|
|
- |
|
|
|
8 |
|
|
|
2 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
6 |
|
|
|
- |
|
Loss on debt extinguishment and related expenses |
|
- |
|
|
|
- |
|
|
|
(129 |
) |
|
|
- |
|
|
|
129 |
|
|
|
31 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
98 |
|
|
|
0.07 |
|
Initial impacts from enacted tax law changes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(22 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
22 |
|
|
|
0.01 |
|
Loss on equity method investment transactions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
|
|
|
(16 |
) |
|
|
- |
|
|
|
- |
|
|
17 |
|
|
|
0.01 |
|
Equity method investee items |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
7 |
|
|
|
- |
|
|
(7 |
) |
|
|
- |
|
Adjusted (Non-GAAP) |
$ |
3,727 |
|
|
$ |
(94 |
) |
|
$ |
247 |
|
|
$ |
- |
|
|
$ |
3,574 |
|
|
$ |
732 |
|
|
20.5 |
% |
|
$ |
- |
|
|
$ |
(177 |
) |
|
$ |
8 |
|
$ |
3,011 |
|
|
$ |
2.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 7a |
Mondelēz International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Diluted EPS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Three Months
Ended September 30, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
$ Change |
|
% Change |
Diluted EPS attributable to Mondelēz International
(GAAP) |
$ |
0.72 |
|
|
$ |
0.39 |
|
|
$ |
0.33 |
|
|
84.6 |
% |
Simplify to Grow Program |
|
0.01 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
Intangible asset impairment charges |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
(0.01 |
) |
|
|
0.07 |
|
|
|
(0.08 |
) |
|
|
Acquisition integration costs and contingent consideration
adjustments |
|
0.04 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
Inventory step-up |
|
- |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
Acquisition-related costs |
|
- |
|
|
|
0.21 |
|
|
|
(0.21 |
) |
|
|
Net earnings from divestitures |
|
- |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
Remeasurement of net monetary position |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
Initial impacts from enacted tax law changes |
|
0.01 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
Gain on marketable securities |
|
(0.02 |
) |
|
|
- |
|
|
|
(0.02 |
) |
|
|
Equity method investee items |
|
0.03 |
|
|
|
(0.01 |
) |
|
|
0.04 |
|
|
|
Adjusted EPS (Non-GAAP) |
$ |
0.82 |
|
|
$ |
0.72 |
|
|
$ |
0.10 |
|
|
13.9 |
% |
Impact of unfavorable currency |
|
0.02 |
|
|
|
- |
|
|
|
0.02 |
|
|
|
Adjusted EPS @ Constant FX (Non-GAAP) |
$ |
0.84 |
|
|
$ |
0.72 |
|
|
$ |
0.12 |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
Adjusted EPS @ Constant FX - Key
Drivers |
|
|
|
|
|
|
|
Increase in operations |
|
|
|
|
$ |
0.16 |
|
|
|
Impact from acquisitions |
|
|
|
|
|
0.01 |
|
|
|
Change in benefit plan non-service income |
|
|
|
|
|
(0.01 |
) |
|
|
Change in interest and other expense, net |
|
|
|
|
|
0.04 |
|
|
|
Dividend income from marketable securities |
|
|
|
|
|
- |
|
|
|
Change in equity method investment net earnings |
|
|
|
|
|
(0.01 |
) |
|
|
Change in income taxes |
|
|
|
|
|
(0.08 |
) |
|
|
Change in shares outstanding |
|
|
|
|
|
0.01 |
|
|
|
|
|
|
|
|
$ |
0.12 |
|
|
|
|
|
|
|
|
|
|
Schedule 7b |
Mondelēz International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Diluted EPS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Nine Months Ended
September 30, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
$ Change |
|
% Change |
Diluted EPS attributable to Mondelēz International
(GAAP) |
$ |
2.92 |
|
|
$ |
1.54 |
|
|
$ |
1.38 |
|
|
89.6 |
% |
Simplify to Grow Program |
|
0.04 |
|
|
|
0.04 |
|
|
|
- |
|
|
|
Intangible asset impairment charges |
|
0.02 |
|
|
|
0.05 |
|
|
|
(0.03 |
) |
|
|
Mark-to-market (gains)/losses from derivatives |
|
(0.14 |
) |
|
|
0.13 |
|
|
|
(0.27 |
) |
|
|
Acquisition integration costs and contingent consideration
adjustments |
|
0.08 |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
Inventory step-up |
|
- |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
Acquisition-related costs |
|
- |
|
|
|
0.23 |
|
|
|
(0.23 |
) |
|
|
Divestiture-related costs |
|
0.03 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
Net earnings from divestitures |
|
(0.02 |
) |
|
|
(0.07 |
) |
|
|
0.05 |
|
|
|
Incremental costs due to war in Ukraine |
|
- |
|
|
|
0.09 |
|
|
|
(0.09 |
) |
|
|
Remeasurement of net monetary position |
|
0.04 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
Loss on debt extinguishment and related expenses |
|
- |
|
|
|
0.07 |
|
|
|
(0.07 |
) |
|
|
Initial impacts from enacted tax law changes |
|
0.01 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
Gain on marketable securities |
|
(0.33 |
) |
|
|
- |
|
|
|
(0.33 |
) |
|
|
(Gain)/loss on equity method investment transactions |
|
(0.25 |
) |
|
|
0.01 |
|
|
|
(0.26 |
) |
|
|
Equity method investee items |
|
0.06 |
|
|
|
- |
|
|
|
0.06 |
|
|
|
Adjusted EPS (Non-GAAP) |
$ |
2.46 |
|
|
$ |
2.17 |
|
|
$ |
0.29 |
|
|
13.4 |
% |
Impact of unfavorable currency |
|
0.12 |
|
|
|
- |
|
|
|
0.12 |
|
|
|
Adjusted EPS @ Constant FX (Non-GAAP) |
$ |
2.58 |
|
|
$ |
2.17 |
|
|
$ |
0.41 |
|
|
18.9 |
% |
|
|
|
|
|
|
|
|
Adjusted EPS @ Constant FX - Key
Drivers |
|
|
|
|
|
|
|
Increase in operations |
|
|
|
|
$ |
0.43 |
|
|
|
Impact from acquisitions |
|
|
|
|
|
0.06 |
|
|
|
Change in benefit plan non-service income |
|
|
|
|
|
(0.02 |
) |
|
|
Change in interest and other expense, net |
|
|
|
|
|
- |
|
|
|
Dividend income from marketable securities |
|
|
|
|
|
0.01 |
|
|
|
Change in equity method investment net earnings |
|
|
|
|
|
(0.01 |
) |
|
|
Change in income taxes |
|
|
|
|
|
(0.09 |
) |
|
|
Change in shares outstanding |
|
|
|
|
|
0.03 |
|
|
|
|
|
|
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 8a |
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 September 30, 2023 |
|
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) |
$ |
1,305 |
|
|
$ |
1,791 |
|
|
$ |
3,086 |
|
|
$ |
2,847 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
9,029 |
|
Divestitures |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted (Non-GAAP) |
$ |
1,305 |
|
|
$ |
1,791 |
|
|
$ |
3,086 |
|
|
$ |
2,847 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
9,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
156 |
|
|
$ |
302 |
|
|
$ |
494 |
|
|
$ |
532 |
|
|
$ |
19 |
|
|
$ |
(86 |
) |
|
$ |
(38 |
) |
|
$ |
- |
|
|
$ |
1,379 |
|
Simplify to Grow Program |
|
- |
|
|
|
4 |
|
|
|
1 |
|
|
|
12 |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
20 |
|
Intangible asset impairment charges |
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
20 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26 |
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(19 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(19 |
) |
Acquisition integration costs and contingent consideration
adjustments |
|
13 |
|
|
|
- |
|
|
|
6 |
|
|
|
46 |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
68 |
|
Divestiture-related costs |
|
- |
|
|
|
- |
|
|
|
12 |
|
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
14 |
|
Incremental costs due to war in Ukraine |
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
Remeasurement of net monetary position |
|
20 |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
22 |
|
Adjusted (Non-GAAP) |
$ |
189 |
|
|
$ |
306 |
|
|
$ |
522 |
|
|
$ |
611 |
|
|
$ |
- |
|
|
$ |
(79 |
) |
|
$ |
(38 |
) |
|
$ |
- |
|
|
$ |
1,511 |
|
Currency |
|
(11 |
) |
|
|
27 |
|
|
|
31 |
|
|
|
1 |
|
|
|
- |
|
|
|
(2 |
) |
|
|
3 |
|
|
|
- |
|
|
|
49 |
|
Adjusted @ Constant FX (Non-GAAP) |
$ |
178 |
|
|
$ |
333 |
|
|
$ |
553 |
|
|
$ |
612 |
|
|
$ |
- |
|
|
$ |
(81 |
) |
|
$ |
(35 |
) |
|
$ |
- |
|
|
$ |
1,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ Change - Reported (GAAP) |
$ |
44 |
|
|
$ |
45 |
|
|
$ |
81 |
|
|
$ |
67 |
|
|
n/m |
|
|
$ |
(28 |
) |
|
$ |
(6 |
) |
|
n/m |
|
|
$ |
700 |
|
$ Change - Adjusted (Non-GAAP) |
|
59 |
|
|
|
24 |
|
|
|
96 |
|
|
|
119 |
|
|
n/m |
|
|
|
(34 |
) |
|
|
(6 |
) |
|
n/m |
|
|
|
258 |
|
$ Change - Adjusted @ Constant FX (Non-GAAP) |
|
48 |
|
|
|
51 |
|
|
|
127 |
|
|
|
120 |
|
|
n/m |
|
|
|
(36 |
) |
|
|
(3 |
) |
|
n/m |
|
|
|
307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change - Reported (GAAP) |
|
39.3 |
% |
|
|
17.5 |
% |
|
|
19.6 |
% |
|
|
14.4 |
% |
|
n/m |
|
|
|
(48.3 |
)% |
|
|
(18.8 |
)% |
|
n/m |
|
|
|
103.1 |
% |
% Change - Adjusted (Non-GAAP) |
|
45.4 |
% |
|
|
8.5 |
% |
|
|
22.5 |
% |
|
|
24.2 |
% |
|
n/m |
|
|
|
(75.6 |
)% |
|
|
(18.8 |
)% |
|
n/m |
|
|
|
20.6 |
% |
% Change - Adjusted @ Constant FX (Non-GAAP) |
|
36.9 |
% |
|
|
18.1 |
% |
|
|
29.8 |
% |
|
|
24.4 |
% |
|
n/m |
|
|
|
(80.0 |
)% |
|
|
(9.4 |
)% |
|
n/m |
|
|
|
24.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported % |
|
12.0 |
% |
|
|
16.9 |
% |
|
|
16.0 |
% |
|
|
18.7 |
% |
|
|
|
|
|
|
|
|
|
|
15.3 |
% |
Reported pp change |
|
(0.3 |
)pp |
|
|
1.8 |
pp |
|
|
0.4 |
pp |
|
|
0.1 |
pp |
|
|
|
|
|
|
|
|
|
|
6.6 |
pp |
Adjusted % |
|
14.5 |
% |
|
|
17.1 |
% |
|
|
16.9 |
% |
|
|
21.5 |
% |
|
|
|
|
|
|
|
|
|
|
16.7 |
% |
Adjusted pp change |
|
0.2 |
pp |
|
|
0.6 |
pp |
|
|
0.8 |
pp |
|
|
1.8 |
pp |
|
|
|
|
|
|
|
|
|
|
0.6 |
pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 2022 |
|
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) |
$ |
913 |
|
|
$ |
1,704 |
|
|
$ |
2,649 |
|
|
$ |
2,497 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,763 |
|
Divestitures |
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1 |
) |
Adjusted (Non-GAAP) |
$ |
912 |
|
|
$ |
1,704 |
|
|
$ |
2,649 |
|
|
$ |
2,497 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
7,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
112 |
|
|
$ |
257 |
|
|
$ |
413 |
|
|
$ |
465 |
|
|
$ |
(186 |
) |
|
$ |
(58 |
) |
|
$ |
(32 |
) |
|
$ |
(292 |
) |
|
$ |
679 |
|
Simplify to Grow Program |
|
(1 |
) |
|
|
1 |
|
|
|
8 |
|
|
|
- |
|
|
|
- |
|
|
|
8 |
|
|
|
- |
|
|
|
- |
|
|
|
16 |
|
Intangible asset impairment charges |
|
- |
|
|
|
23 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
23 |
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
186 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
186 |
|
Acquisition integration costs and contingent consideration
adjustments |
|
6 |
|
|
|
1 |
|
|
|
13 |
|
|
|
7 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27 |
|
Inventory step-up |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
20 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
20 |
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
292 |
|
|
|
292 |
|
Divestiture-related costs |
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5 |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
Incremental costs due to war in Ukraine |
|
- |
|
|
|
- |
|
|
|
(7 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(7 |
) |
Remeasurement of net monetary position |
|
12 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11 |
|
Adjusted (Non-GAAP) |
$ |
130 |
|
|
$ |
282 |
|
|
$ |
426 |
|
|
$ |
492 |
|
|
$ |
- |
|
|
$ |
(45 |
) |
|
$ |
(32 |
) |
|
$ |
- |
|
|
$ |
1,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported % |
|
12.3 |
% |
|
|
15.1 |
% |
|
|
15.6 |
% |
|
|
18.6 |
% |
|
|
|
|
|
|
|
|
|
|
8.7 |
% |
Adjusted % |
|
14.3 |
% |
|
|
16.5 |
% |
|
|
16.1 |
% |
|
|
19.7 |
% |
|
|
|
|
|
|
|
|
|
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 8b |
Mondelēz International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Segment Data |
(in millions of U.S. dollars) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2023 |
|
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) |
$ |
3,744 |
|
|
$ |
5,339 |
|
|
$ |
9,319 |
|
|
$ |
8,300 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
26,702 |
|
Divestitures |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted (Non-GAAP) |
$ |
3,744 |
|
|
$ |
5,339 |
|
|
$ |
9,319 |
|
|
$ |
8,300 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
26,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
429 |
|
|
$ |
869 |
|
|
$ |
1,450 |
|
|
$ |
1,678 |
|
|
$ |
239 |
|
|
$ |
(242 |
) |
|
$ |
(114 |
) |
|
$ |
- |
|
|
$ |
4,309 |
|
Simplify to Grow Program |
|
(2 |
) |
|
|
6 |
|
|
|
30 |
|
|
|
20 |
|
|
|
- |
|
|
|
7 |
|
|
|
- |
|
|
|
- |
|
|
|
61 |
|
Intangible asset impairment charges |
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
20 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26 |
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(239 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(239 |
) |
Acquisition integration costs and contingent consideration
adjustments |
|
29 |
|
|
|
2 |
|
|
|
15 |
|
|
|
93 |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
|
|
- |
|
|
|
143 |
|
Divestiture-related costs |
|
- |
|
|
|
- |
|
|
|
49 |
|
|
|
10 |
|
|
|
- |
|
|
|
7 |
|
|
|
- |
|
|
|
- |
|
|
|
66 |
|
Incremental costs due to war in Ukraine |
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
Remeasurement of net monetary position |
|
41 |
|
|
|
- |
|
|
|
19 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
60 |
|
Adjusted (Non-GAAP) |
$ |
497 |
|
|
$ |
877 |
|
|
$ |
1,567 |
|
|
$ |
1,821 |
|
|
$ |
- |
|
|
$ |
(224 |
) |
|
$ |
(114 |
) |
|
$ |
- |
|
|
$ |
4,424 |
|
Currency |
|
3 |
|
|
|
87 |
|
|
|
92 |
|
|
|
6 |
|
|
|
- |
|
|
|
(7 |
) |
|
|
2 |
|
|
|
- |
|
|
|
183 |
|
Adjusted @ Constant FX (Non-GAAP) |
$ |
500 |
|
|
$ |
964 |
|
|
$ |
1,659 |
|
|
$ |
1,827 |
|
|
$ |
- |
|
|
$ |
(231 |
) |
|
$ |
(112 |
) |
|
$ |
- |
|
|
$ |
4,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ Change - Reported (GAAP) |
$ |
124 |
|
|
$ |
129 |
|
|
$ |
280 |
|
|
$ |
341 |
|
|
n/m |
|
|
$ |
(72 |
) |
|
$ |
(18 |
) |
|
n/m |
|
|
$ |
1,609 |
|
$ Change - Adjusted (Non-GAAP) |
|
160 |
|
|
|
28 |
|
|
|
173 |
|
|
|
428 |
|
|
n/m |
|
|
|
(74 |
) |
|
|
(18 |
) |
|
n/m |
|
|
|
697 |
|
$ Change - Adjusted @ Constant FX (Non-GAAP) |
|
163 |
|
|
|
115 |
|
|
|
265 |
|
|
|
434 |
|
|
n/m |
|
|
|
(81 |
) |
|
|
(16 |
) |
|
n/m |
|
|
|
880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change - Reported (GAAP) |
|
40.7 |
% |
|
|
17.4 |
% |
|
|
23.9 |
% |
|
|
25.5 |
% |
|
n/m |
|
|
|
(42.4 |
)% |
|
|
(18.8 |
)% |
|
n/m |
|
|
|
59.6 |
% |
% Change - Adjusted (Non-GAAP) |
|
47.5 |
% |
|
|
3.3 |
% |
|
|
12.4 |
% |
|
|
30.7 |
% |
n/m |
|
|
|
(49.3 |
)% |
|
|
(18.8 |
)% |
|
n/m |
|
|
|
18.7 |
% |
% Change - Adjusted @ Constant FX (Non-GAAP) |
|
48.4 |
% |
|
|
13.5 |
% |
|
|
19.0 |
% |
|
|
31.2 |
% |
|
n/m |
|
|
|
(54.0 |
)% |
|
|
(16.7 |
)% |
|
n/m |
|
|
|
23.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported % |
|
11.5 |
% |
|
|
16.3 |
% |
|
|
15.6 |
% |
|
|
20.2 |
% |
|
|
|
|
|
|
|
|
|
|
16.1 |
% |
Reported pp change |
|
(0.2 |
)pp |
|
|
1.8 |
pp |
|
|
1.3 |
pp |
|
|
0.7 |
pp |
|
|
|
|
|
|
|
|
|
|
4.3 |
pp |
Adjusted % |
|
13.3 |
% |
|
|
16.4 |
% |
|
|
16.8 |
% |
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|
16.6 |
% |
Adjusted pp change |
|
0.3 |
pp |
|
|
(0.2 |
)pp |
|
|
(0.2 |
)pp |
|
|
1.6 |
pp |
|
|
|
|
|
|
|
|
|
|
0.2 |
pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2022 |
|
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) |
$ |
2,615 |
|
|
$ |
5,106 |
|
|
$ |
8,210 |
|
|
$ |
6,870 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
22,801 |
|
Divestitures |
|
(22 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(22 |
) |
Adjusted (Non-GAAP) |
$ |
2,593 |
|
|
$ |
5,106 |
|
|
$ |
8,210 |
|
|
$ |
6,870 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
22,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
305 |
|
|
$ |
740 |
|
|
$ |
1,170 |
|
|
$ |
1,337 |
|
|
$ |
(268 |
) |
|
$ |
(170 |
) |
|
$ |
(96 |
) |
|
$ |
(318 |
) |
|
$ |
2,700 |
|
Simplify to Grow Program |
|
- |
|
|
|
7 |
|
|
|
23 |
|
|
|
28 |
|
|
|
- |
|
|
|
11 |
|
|
|
- |
|
|
|
- |
|
|
|
69 |
|
Intangible asset impairment charges |
|
- |
|
|
|
101 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
101 |
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
268 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
268 |
|
Acquisition integration costs and contingent consideration
adjustments |
|
6 |
|
|
|
1 |
|
|
|
81 |
|
|
|
8 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
96 |
|
Inventory step-up |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
20 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
20 |
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
318 |
|
|
|
318 |
|
Divestiture-related costs |
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9 |
|
|
|
- |
|
|
|
- |
|
|
|
12 |
|
Operating income from divestitures |
|
(4 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4 |
) |
Incremental costs due to war in Ukraine |
|
- |
|
|
|
- |
|
|
|
121 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
121 |
|
Remeasurement of net monetary position |
|
27 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26 |
|
Adjusted (Non-GAAP) |
$ |
337 |
|
|
$ |
849 |
|
|
$ |
1,394 |
|
|
$ |
1,393 |
|
|
$ |
- |
|
|
$ |
(150 |
) |
|
$ |
(96 |
) |
|
$ |
- |
|
|
$ |
3,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported % |
|
11.7 |
% |
|
|
14.5 |
% |
|
|
14.3 |
% |
|
|
19.5 |
% |
|
|
|
|
|
|
|
|
|
|
11.8 |
% |
Adjusted % |
|
13.0 |
% |
|
|
16.6 |
% |
|
|
17.0 |
% |
|
|
20.3 |
% |
|
|
|
|
|
|
|
|
|
|
16.4 |
% |
|
|
|
|
|
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 Nine Months Ended
September 30, |
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
$ Change |
|
|
|
|
|
|
Net Cash Provided by Operating Activities
(GAAP) |
$ |
3,150 |
|
|
$ |
2,516 |
|
|
$ |
634 |
|
Capital Expenditures |
|
(780 |
) |
|
|
(621 |
) |
|
|
(159 |
) |
Free Cash Flow (Non-GAAP) |
$ |
2,370 |
|
|
$ |
1,895 |
|
|
$ |
475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contacts: |
|
Tracey Noe (Media) |
|
Shep Dunlap (Investors) |
|
|
|
|
1-847-943-5678 |
|
1-847-943-5454 |
|
|
|
|
news@mdlz.com |
|
ir@mdlz.com |
|
|
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