Mondelez Q2 revenue beats estimates, partly helped by higher pricing

Overview

• Snack maker's Q2 revenue rose 4.1%, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations, though declined 2.7% on constant currency basis

• Company announced a 4% increase to its quarterly dividend

Outlook

• Mondelez expects at least 2% organic net revenue growth for 2026

• Company maintains 2026 adjusted EPS growth in range of flat to 5% on constant currency

• Mondelez expects 2026 free cash flow of about $3 bln

Result Drivers

• PRICING AND VOLUME/MIX - Co said Q2 organic net revenue growth was driven by higher net pricing and favorable volume/mix

• FAVORABLE DERIVATIVES IMPACT - Gross profit margin rose mainly due to a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives

• HIGHER RAW MATERIAL AND OTHER COSTS - Adjusted operating income and EPS were negatively affected by higher raw material costs, increased ERP implementation expenses and incremental costs due to geopolitical conflicts

Company press release: ID:nGNX9ZD1Fb

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for Mondelez International Inc is $68.00, about 12.1% above its July 27 closing price of $60.67

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• July 28 - Unilever lifts outlook on strongest volume growth in over a decade

• July 28 - Family-owned companies have big appetites for US snack MA

• July 28 - Coca-Cola hails World Cup hydration breaks as it lifts annual forecasts

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)