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1. Company Snapshot

1.a. Company Description

Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe.It provides biscuits, including cookies, crackers, and salted snacks; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products.The company's snack brand portfolio includes Cadbury, Milka, and Toblerone chocolates; Oreo, belVita, and LU biscuits; Halls candies; Trident gums; and Tang powdered beverages.


It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, third party distributors, and other facilities, as well as through independent sales offices and agents, and e-commerce channels.The company was formerly known as Kraft Foods Inc.and changed its name to Mondelez International, Inc.


in October 2012.Mondelez International, Inc.was incorporated in 2000 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on MDLZ

Mondelez International's recent performance was negatively driven by escalating cocoa costs, which squeezed profit margins despite strong pricing moves. The company's reliance on international revenue and emerging market growth may not be enough to offset the impact of high cocoa prices on its margins. Additionally, volume declines, although manageable, may continue to be a concern, and the company's diversified snacking portfolio may not be enough to fully mitigate these pressures.

1.c. Company Highlights

2. Mondelez International's Q3 2025 Earnings: A Mixed Bag

Mondelez International reported actual EPS of $0.73, slightly beating estimates of $0.724. Revenue growth was muted, but the company is taking steps to address the challenges it faces in Europe and the US. The company's gross margin was impacted by the substantial price increases, around 30%, due to high cocoa costs. As Dirk Van de Put noted, "the chocolate business is fine, but we're addressing pockets of pressure, including retailers taking more margin and competitors not increasing prices as much."

Publication Date: Oct -30

📋 Highlights
  • European Price Elasticity Challenge:: Elasticity rose to 0.7-0.8 (vs. 0.4-0.5 historically), driven by 30% price hikes and competitive pressures, requiring precise pricing adjustments.
  • 2026 EPS Growth Target:: High single-digit EPS growth projected, supported by cocoa deflation and cost productivity, despite Q4 guidance impacts from tariffs and destocking.
  • Emerging Markets Recovery:: Volume growth expected in China, India, Brazil, and Mexico (offsetting declines in Argentina and India), with India exceeding expectations.
  • US Strategy Shift:: Focus on value/convenience via Club, E-commerce, and "on-the-go" multi-packs, alongside premium brands like Tate’s and belVita for profit margins.
  • Supply Chain & Cost Efficiency:: Multi-year North America supply chain program aims to reduce costs in bakeries and logistics, improving margin resilience amid inflationary pressures.

Regional Performance

In Europe, the company faced challenges due to substantial price increases, resulting in elasticity of around 0.7 to 0.8, higher than expected. However, the company is working to hit the right price points and expects a significant improvement going forward, particularly with the heaviest cocoa cost behind them. In the US, the category is slowing down, and consumers are seeking value and essentials. The company is working to increase its presence in channels like Club, Value, and E-commerce.

Outlook and Guidance

The company is targeting high single-digit EPS growth for 2026, with cocoa expected to be deflationary. CFO Luca Zaramella noted that the company needs to put together its thinking on cocoa levels for 2026 but expects volume growth in the chocolate business in Europe and continuous growth in developing markets. Analysts estimate next year's revenue growth at 4.1%.

Valuation

Mondelez International's current valuation metrics are as follows: P/E Ratio of 21.36, P/B Ratio of 2.88, P/S Ratio of 1.99, EV/EBITDA of 17.46, Dividend Yield of 3.3%, Free Cash Flow Yield of 3.06%, ROIC of 6.48%, and ROE of 13.44%. The stock's P/E Ratio suggests that the market is pricing in moderate growth expectations, while the Dividend Yield provides a relatively attractive return for income investors.

Cost Management and Investments

The company is taking steps to improve its cost structure, including a new multi-year North America supply chain program aimed at addressing costs, particularly in US bakeries, and improving logistics. Luca Zaramella stated that working media spending will increase in 2026, while non-working media will continue to decline. Overhead costs are expected to be in line with 2025 levels, excluding incentives.

3. NewsRoom

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Market Today: Deal Talks, Retail Wins, AI Chips, and Crypto Volatility

Dec -02

Source: gurufocus.com

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San Francisco sues Kraft, Mondelez over ultra-processed foods

Dec -02

Source: reuters.com

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Mondelēz Global LLC Conducts Limited Voluntary Recall of 1 SKU of RITZ Peanut Butter Cracker Sandwiches in New York, New Jersey, Pennsylvania, Georgia, Arkansas, Missouri, Oklahoma, and Alabama

Nov -28

Source: globenewswire.com

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Cocoa Melts To 2-Year Lows — Just In Time For Hot Chocolate Season

Nov -27

Source: feeds.benzinga.com

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Mondelez Delivers a Solid Q3: Does the Guidance Cut Signal Trouble?

Nov -27

Source: zacks.com

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Mondelez International, Inc. $MDLZ Holdings Lowered by American Century Companies Inc.

Nov -23

Source: defenseworld.net

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ABN AMRO Bank N.V. Invests $3.06 Million in Mondelez International, Inc. $MDLZ

Nov -21

Source: defenseworld.net

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Mondelez International, Inc. $MDLZ Shares Purchased by Bronte Capital Management Pty Ltd.

Nov -20

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.49%)

6. Segments

Europe

Expected Growth: 4.5%

Mondelez International's European operations are expected to grow driven by increasing demand for snacking, expansion in emerging markets, and the company's focus on innovation and cost savings initiatives.

North America

Expected Growth: 3.5%

Mondelez International's North America operations are expected to grow steadily, driven by increasing demand for premium and healthy snack options, as well as the company's strong brand portfolio, including Oreo, Chips Ahoy!, and Trident.

Asia, Middle East & Africa (AMEA)

Expected Growth: 4.8%

Growing middle-class population, increasing demand for convenience and premium products, and strategic expansion into emerging markets drive Mondelez International's growth in Asia, Middle East & Africa.

Latin America

Expected Growth: 6.2%

Mondelez International's Latin America operations are driven by a growing middle class, urbanization, and an increasing demand for convenience and premium products, particularly in Mexico and Argentina.

7. Detailed Products

Chocolate

Mondelez International offers a wide range of chocolate products, including bars, boxes, and seasonal items, under brands such as Cadbury, Milka, and Toblerone.

Biscuits

Mondelez International's biscuit portfolio includes brands such as Oreo, Chips Ahoy!, and Belvita, offering a variety of flavors and textures.

Gum and Candy

Mondelez International's gum and candy products, including Trident, Dentyne, and Halls, provide a range of flavors and textures for consumers.

Beverages

Mondelez International's beverage portfolio includes coffee, tea, and chocolate-flavored drinks, under brands such as Jacobs and Milka.

Snack Bars

Mondelez International's snack bar portfolio includes brands such as Clif Bar and Luna, offering a range of flavors and nutritional benefits.

8. Mondelez International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Mondelez International, Inc. faces moderate threat from substitutes due to the presence of alternative snack options, but the company's strong brand portfolio and product diversification mitigate this threat.

Bargaining Power Of Customers

Mondelez International, Inc. has a large and diversified customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand portfolio and product offerings give it an upper hand in negotiations.

Bargaining Power Of Suppliers

Mondelez International, Inc. faces moderate bargaining power from suppliers due to the concentration of suppliers in certain categories, but the company's scale and global presence help to mitigate this threat.

Threat Of New Entrants

Mondelez International, Inc. operates in a highly competitive industry, but the company's strong brand portfolio, global presence, and significant investments in research and development create barriers to entry for new entrants.

Intensity Of Rivalry

Mondelez International, Inc. operates in a highly competitive industry with many established players, leading to intense rivalry. The company must continuously innovate and invest in marketing and advertising to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.31%
Debt Cost 3.95%
Equity Weight 58.69%
Equity Cost 6.71%
WACC 5.57%
Leverage 70.40%

11. Quality Control: Mondelez International, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

54.9$

Current Price

54.91$

Potential

-0.00%

Expected Cash-Flows