Mondelēz International reports Q4 2025 results
Mondelēz reported solid top‑line growth in 2025 but faced margin pressure from cocoa costs; the company posted FY‑25 net revenues up 5.8%, generated US$4.5 billion of operating cash flow, and provided a cautious FY‑26 outlook while returning US$4.9 billion to shareholders.
USA – Mondelēz International has released its fourth quarter and full-year (FY) 2025 financial results, highlighting resilient revenue growth amid soaring cocoa costs and volume pressures.
Full-year net revenues climbed 5.8% to US$38.537 billion, with organic net revenues up 4.3%, though volume/mix declined 3.7% due to pricing actions offsetting unfavorable trends; Q4 net revenues surged 9.3% to US$10.496 billion, driven by 5.1% organic growth.
The company reported FY‑25 GAAP diluted EPS of US$1.89, a 44.7% decline year‑over‑year, while adjusted EPS was US$2.92, down 14.6% on a constant‑currency basis, reflecting higher input costs and mix pressures.
In the fourth quarter, Mondelēz reiterated that pricing actions and productivity programs helped offset some inflation but were not sufficient to neutralize the impact of commodity inflation on margins thoroughly.
Cash generation remained a bright spot: Mondelēz generated US$ 4.5 billion of cash provided by operating activities and US$3.2 billion of free cash flow in FY‑25, enabling the company to continue returning capital to shareholders while investing in growth initiatives.
The company returned US$4.9 billion to shareholders through dividends and share repurchases during the year, underscoring its continued focus on shareholder returns despite near‑term earnings pressure.
2026 Outlook
Looking ahead, Mondelēz provided a FY‑26 outlook that reflects cautious optimism: management expects market conditions to improve gradually, while remaining mindful of ongoing commodity volatility and foreign‑exchange dynamics.
The company emphasized actions to mitigate cost pressures, including accelerated productivity programs, targeted pricing, and portfolio management, while continuing to invest in innovation and marketing to support long‑term brand health.
For 2026, the company expects Organic Net Revenue growth in the range of flat to 2% and Adjusted EPS growth in the range of flat to 5% on a constant currency basis.
The company also expects Free Cash Flow of approximately US$3 billion in 2026.
The company currently estimates that currency translation would increase 2026 net revenue growth by approximately 2.0% and increase Adjusted EPS by US$0.063.
Management said unprecedented cocoa cost headwinds materially pressured margins during the year, contributing to a decline in reported earnings while the top line benefited from pricing and portfolio strength.
CEO Dirk Van de Put remarked, “We delivered solid top-line results, generated strong cash flow, and returned significant cash to shareholders in a dynamic and challenging 2025 environment.”
“While unprecedented cocoa cost headwinds impacted our profitability, our teams remained focused on what they can control to best position us for sustainable, profitable growth.”
Recently, Mondelēz International announced the appointment of Luca Zaramella as Chief Operating Officer (COO), in a move aimed at strengthening execution and accelerating decision-making across the global confectionery and snacking group.
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