Mondelez International, Inc. reported first quarter 2013 results. Net revenues were $8.7 billion, up 0.9 percent. Organic net revenues increased 3.8 percent, including solid contributions from higher volume/mix of 2.5 percentage points and favorable pricing of 1.3 percentage points. The pass-through of lower coffee commodity costs tempered the company's overall top-line growth by 1.3 percentage points.
Revenues from emerging markets accelerated sequentially, up 9.3 percent, led by double-digit gains in China, Brazil and India, and continued improvement in Russia. Developed markets grew 0.4 percent, with growth in North America partially offset by the impact of lower coffee pricing in Europe and continued gum weakness.
Power Brands grew 7.5 percent, nearly double the company rate. Tuc/Club Social, Chips Ahoy!, Barni and Oreo biscuits, Milka, Cadbury Dairy Milk and Lacta chocolate, Halls candy, Stride gum and Tang beverages each posted strong increases.
Gross profit was $3.2 billion, up 1.5 percent, while gross profit margin was 37.1 percent. Adjusted gross profit increased 3.9 percent on a constant currency basis, driven by strong volume/mix gains. Pricing fully offset higher input costs. Adjusted gross profit margin was flat to prior year.
Operating income was $0.8 billion, down 7.6 percent, while operating income margin was 9.5 percent.
Adjusted operating income decreased 4 percent on a constant currency basis, and included a negative 3.4 percentage point impact from previously disclosed prior year one-time items. Excluding these items, gross profit gains were more than offset by higher SG&A predominately in emerging markets, including increased investments in sales capabilities, route-to-market expansion as well as advertising and consumer support.
Adjusted operating income margin was 10.3 percent, down 1.6 percentage points, including the negative impacts of 0.6 percentage points due to the devaluation of net monetary assets in Venezuela and 0.4 percentage points from prior year one-time items.
Diluted earnings per share (EPS) were $0.32. Operating EPS was $0.34, including a negative $0.04 impact from currency. On a constant currency basis, Operating EPS increased 22.6 percent, reflecting a positive $0.09 impact of lower taxes, primarily from discrete items.
"Our first quarter results were in line with the expectations we outlined earlier this year as we work through some near-term headwinds," said Irene Rosenfeld, chairman and CEO in a prepared statement. "Although we're not satisfied that our top-line growth remained below our long-term target, our results show that we've built solid underlying momentum. And I'm confident that we'll deliver our 2013 commitments as we continue to leverage our advantaged category mix, leading market positions and strong geographic footprint, particularly in emerging markets."
