Mondelez International announces first quarter 2015 results

Mondelez International, the maker of Cadbury chocolate, has reported better-than-expected first quarter 2015 results.

The results reflect continued strong Adjusted Operating Income margin expansion and Adjusted EPS growth on a constant currency basis, as well as solid Organic Net Revenue growth. 

Mondelez International remains focused on productivity and cost reduction

“We’re making good progress executing our transformation agenda.  Our solid first quarter positions us well to deliver our full year 2015 outlook and 2016 margin targets,” said Irene Rosenfeld, Chairman and CEO.  “We remain intently focused on productivity and cost reduction to drive strong margin expansion and earnings growth.  This enables continued investment in our Power Brands, supply chain, and sales and distribution capabilities to drive sustainable revenue and earnings growth.”

On a reported basis, net revenues were $7.8 billion, down 10.2%, including a negative 14.5 percentage point impact from currency.  Operating income was $811 million, down 3.8%.  Diluted EPS was $0.19, up $0.10.

For the rest of 2015, the company continues to expect Organic Net Revenue growth of at least 2%, Adjusted Operating Income margin of approximately 14%, Adjusted EPS growth at a double-digit rate on a constant-currency basis and Free Cash Flow excluding items of $1.2 billion. 

The company estimates foreign exchange translation to reduce 2015 net revenue growth by approximately 12 percentage points and Adjusted EPS by approximately $0.33 due to the strengthening of the U.S. dollar versus other currencies.

Mondelez International split from Kraft Foods Group in 2012.