Mondelez International, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Full Year of 2018
January 31, 2018 at 10:49 am EST
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Mondelez International, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net revenues of $6,966 million against $6,770 million a year ago. Operating income was $844 million against $507 million a year ago. Earnings before income taxes were $724 million against loss of $68 million a year ago. Net earnings attributable to the company were $802 million or $0.53 per diluted share against $93 million or $0.06 per basic and diluted share a year ago. Adjusted net revenues were $6,960 million against $6,578 million a year ago. Adjusted operating income was $1,108 million against $925 million a year ago. Adjusted earnings before income taxes were $988 million against $777 million a year ago. Adjusted net earnings attributable to the company were $862 million or $0.57 per diluted share against $688 million or $0.44 per diluted share million a year ago.
For the year, the company reported net revenues of $25,896 million against $25,923 million a year ago. Operating income was $3,506 million against $2,569 million a year ago. Earnings before income taxes were $3,124 million against $1,454 million a year ago. Net earnings attributable to the company were $2,922 million or $1.91 per diluted share against $1,659 million or $1.05 per diluted share a year ago. Net cash provided by operating activities was $2,593 million against $2,838 million a year ago. Capital expenditures were $1,014 million against $1,224 million a year ago. Adjusted net revenues were $25,626 million against $25,270 million a year ago. Adjusted operating income was $4,178 million against $3,802 million a year ago. Adjusted earnings before income taxes were $3,738 million against $3,211 million a year ago. Adjusted net earnings attributable to the company were $3,270 million or $2.14 per diluted share against $2,922 million or $1.86 per diluted share million a year ago.
For the year 2018, the company expects organic net revenue to grow between 1% to 2%. The company does expect that 2018 will be another year of double-digit EPS growth at constant currency, which sets apart from others in the industry. The outlook for free cash flow is approximately $2.8 billion. Adjusted effective tax rate is to be in the low to mid-20s and likely very close to 2017 rate. Adjusted OI margin is approximately 17% in 2018. Improving cash flow performance in 2018 and beyond as CapEx spending is now below 4% of revenue. The company estimates currency translation would increase net revenue growth by approximately 4% and adjusted EPS by approximately $0.12.
Mondelez International, Inc. is one of the world's leading food processing groups. Net sales break down by family of products as follows:
- cookies and snacks (48.9%): Barni, belVita, Chips Ahoy, Club Social, Enjoy Life Foods, Honey Maid, Kinh Do, LU, Oreo, Prince, Ritz, Tate's Bake Shop, Tiger, Triscuit, TUC, Wheat Thins, etc. brands;
- chocolates (29.5%): 5 Star, Alpen Gold, Cadbury, Cadbury Dairy Milk, Côte d'Or, Daim, Freia, Hu, Lacta, Marabou, Milka, Toblerone, etc. brands;
- chewing gums and candies (12.3%): Halls, Clorets, Maynards Bassett's, Sour Patch Kids, Stride, etc. brands;
- cheese and grocery products (6%);
- beverages (3.3%): juices, teas and powdered beverages (Tang brand) and malted beverages (Cadbury Bournvita).
At the end of 2023, the group had 148 manufacturing sites worldwide.
Net sales are distributed geographically as follows: the United States (26.6%), North America (4.2%), Europe (35.7%), Asia/Pacific/Middle East/Africa (19.6%) and Latin America (13.9%).
Mondelez International, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Full Year of 2018