Mondelez International Reports Q3 Results; Reaffirms 2015 Outlook And 2016 Margin Target
DEERFIELD, Ill., Oct. 28, 2015 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. today reported its third quarter 2015 results, reflecting continued strong Adjusted Operating Income1 margin expansion and solid Organic Net Revenue1 growth. Adjusted EPS1was flat versus the prior year on a constant-currency basis due to dilution related to the company's recently created coffee joint venture.
"We delivered strong margin expansion in the third quarter by progressing our transformation agenda in a volatile and challenging macroeconomic environment," said Irene Rosenfeld, Chairman and CEO. "We're continuing to aggressively reduce costs to expand margins and provide the fuel for incremental investments behind our Power Brands and route-to-market capabilities to drive sustainable revenue growth and improve market shares. As a result, we remain confident in our ability to deliver our 2015 outlook and our 2016 Adjusted Operating Income margin target of 15 to 16 percent, while continuing to return significant capital to our shareholders."
On a reported basis, net revenues were $6.8 billion, down 17.8 percent, including a negative 13.6 percentage point impact from currency and a negative 9.3 percentage points from the coffee business transactions. Operating income was $7.8 billion, up 815 percent, including a $7.1 billion pre-tax gain from the coffee transaction. Diluted EPS was $4.46, up $3.93.
Organic Net Revenue increased 3.7 percent, as the company raised prices to recover currency-driven input cost inflation. Volume/mix was unfavorable, largely due to price elasticity as well as a 70 basis point headwind resulting from strategic decisions to exit certain low-margin product lines. Power Brands2 grew 5.1 percent. Organic Net Revenue from emerging markets3 was up 10.3 percent, while developed markets4 decreased 0.5 percent. Full report.
