Mondelēz International, Inc. (NASDAQ: MDLZ) has reported its fourth quarter 2020 results. Net revenues increased 2.8% primarily driven by Organic Net Revenue growth of 3.7% and incremental sales from the company’s acquisitions of Perfect Snacks in July 2019 and Give & Go, which was completed in April 2020, partially offset by unfavourable currency impacts. Volume and pricing drove Organic Net Revenue growth, partially offset by unfavourable mix. Organic Net Revenue grew in all four regions.
- Net revenues increased 2.8% primarily driven by Organic Net Revenue growth of 3.7%
- Diluted EPS was $2.47, down 8.2%; Adjusted EPS was $2.59, up 6.5% on a constant-currency basis
- Cash provided by operating activities was $4.0 billion, flat versus prior year; Free Cash Flow was $3.1 billion, an increase of $0.1 billion versus prior year
- Return of capital to shareholders was $3.1 billion
Fourth quarter highlights
- Net revenues increased 5.6% primarily driven by Organic Net Revenue growth of 3.2%
- Diluted EPS was $0.80, up 60.0%; Adjusted EPS was $0.67, up 8.2% on a constant-currency basis
- Resumed share repurchase program in November and returned $1.1 billion of capital to shareholders including $0.7 billion in repurchases
“2020 was a successful year for Mondelēz International and I am proud of our performance, including record share gains, in a challenging operating environment. Our categories were resilient, with the exception of gum which represented 5% of our revenue in 2020. The strength of our brands was evident, as was the dedication of colleagues around the world who executed with excellence in difficult circumstances. We made meaningful progress with our strategic agenda in 2020, continuing to increase investment in brands and capabilities, simplifying our portfolio, expanding into adjacent categories and making acquisitions in high growth areas of snacking. We moved quickly to mitigate incremental COVID-related costs and delivered on our commitment to generate strong cash flow.
“We enter 2021 in a strong position financially and in the marketplace which gives us confidence that we can deliver on our long-term growth targets in 2021 and beyond,” said Dirk Van de Put, Chairman and Chief Executive Officer.
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Editor, International Confectionery
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