Mondelez International, Inc.

Mondelez International operates in the global snack food industry, selling products in over 150 countries around the world. The company is one of the world's largest snack companies, with a core business of making and selling chocolate, biscuits and baked snacks, alongside additional businesses in adjacent categories including gum & candy, cheese & grocery and powdered beverages. The industry is characterized by highly competitive markets comprised of global, regional and local competitors, including new start-up brands and businesses, with competition based on product quality, brand recognition, service, product innovation, taste, convenience, nutritional value, and effectiveness of sales and marketing strategies.

The company competes with global, regional and local food, snack and beverage companies, and in many markets with retailers offering their own branded and private label products. Mondelez International's competitive advantages include its advantaged global footprint, operating scale, and a portfolio of iconic global and local brands such as Oreo, Ritz, LU, Clif Bar, Tate's Bake Shop, Cadbury Dairy Milk, Milka, and Toblerone. The portion of net revenues generated outside the United States was 75.8% in 2025 ¹, 74.0% in 2024 ² and 73.4% in 2023 ³.

The company generates revenue by manufacturing and selling snack products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets, as well as directly to businesses and consumers through e-retail platforms, direct-to-consumer websites and social media platforms. No single customer accounted for 10% or more of net revenues from continuing operations in 2025 ⁴. The business model is transactional, with demand generally balanced throughout the year and increases in the fourth quarter primarily because of holidays and other seasonal events.

Mondelez International's product portfolio spans five categories: Biscuits & Baked Snacks (including cookies, crackers, salted snacks, snack bars and cakes & pastries), Chocolate, Gum & candy, Beverages, and Cheese & grocery. The company's portfolio includes global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. The company is prioritizing its fast-growing core categories of chocolate, biscuits and baked snacks as part of its strategic plan.

The company's operations are organized into four reportable segments: Latin America, AMEA (Asia, Middle East and Africa), Europe, and North America. For the year ended December 31, 2025, Latin America segment net revenues were $4,899 million ⁵, AMEA segment net revenues were $7,932 million ⁶, Europe segment net revenues were $15,027 million ⁷, and North America segment net revenues were $10,679 million ⁸. Segment operating income was $569 million ⁹ for Latin America, $985 million ¹⁰ for AMEA, $1,820 million ¹¹ for Europe, and $1,904 million ¹² for North America.

During the period, the company completed several significant operational developments. In 2024, the company completed the acquisition of Evirth (Shanghai) Industrial Co., Ltd., a leading manufacturer of cakes and pastries in China, for cash consideration of ¥1.8 billion ($255 million) ¹³, net of cash received. In the fourth quarter of 2024, the company sold its remaining 85.9 million shares ¹⁴ in JDE Peet's to JAB Holding Company, receiving €2.2 billion ($2.3 billion) ¹⁵ of proceeds and recording a gain of €313 million ($332 million) ¹⁶. In 2025, the company became entitled to a cash payment of €145 million ($169 million) ¹⁷ from JAB as a result of the definitive agreement for KDP to acquire JDEP. In July 2024, the Board of Directors approved funding of $1.2 billion ¹⁸ for a multi-year ERP System Implementation program. During the year ended December 31, 2025, the company repurchased $2.3 billion ¹⁹ of its Common Stock under a program authorized for up to $9.0 billion ²⁰ through December 31, 2027. The company also recognized non-cash pre-tax settlement losses of $282 million ²¹ related to the MDLZ Global Plan buy-out conversion in the second quarter of 2025 and $54 million ²² related to the Mondelez Canada Inc. pension plan buy-out in the third quarter of 2025.

Net revenues were $38,537 million ²³ in 2025, an increase of 5.8% from $36,441 million ²⁴ in 2024. Net earnings attributable to Mondelez International were $2,451 million ²⁵ in 2025, a decrease of 46.8% from $4,611 million ²⁶ in 2024. Diluted EPS attributable to Mondelez International decreased 44.7% to $1.89 ²⁷ in 2025 from $3.42 ²⁸ in 2024. Operating income decreased 44.1% to $3,548 million ²⁹ in 2025 from $6,345 million ³⁰ in 2024. Adjusted Operating Income, a non-GAAP measure, decreased 13.9% to $5,074 million ³¹ in 2025 from $5,896 million ³² in 2024. Adjusted EPS, a non-GAAP measure, decreased 12.8% to $2.92 ³³ in 2025 from $3.35 ³⁴ in 2024.

The company states that it expects 2026 capital expenditures to be up to $1.5 billion ³⁵, including capital expenditures in connection with the ERP System Implementation program and for funding strategic priorities.

A key growth vector is the company's strategic focus on accelerating consumer-centric growth by prioritizing its fast-growing core categories of chocolate, biscuits and baked snacks. The company plans to invest in both global and local brands, deliver multi-category growth in key geographies, expand presence in high growth channels, and increase presence in under-represented segments and price tiers. Another growth vector is the expansion of the portfolio of cakes and pastries, supported by the November 1, 2024 acquisition of Evirth, a leading manufacturer of cakes and pastries in China, which added incremental net revenues of $316 million ³⁶ (constant currency basis) through the one-year anniversary of the acquisition. The company also continues to expand its portfolio of cakes and pastries in new markets and with updated formats including Oreo cakester line extensions and Milka and Lacta croissants in Europe and Brazil, respectively.

The company's margin and cost outlook is shaped by expectations of continued elevated cocoa costs as compared to historical levels in the near- and medium-term, though cocoa costs are expected to be lower in 2026 compared to the current year. The company plans to drive operational excellence through productivity gains and cost improvements, including leveraging its global shared services platform, driving greater efficiencies in its supply chain, and applying strong cost discipline. The ERP System Implementation program, with Board-approved funding of $1.2 billion ³⁷, is expected to involve spending continuing over the next three years, with expected completion by year-end 2028 ³⁸, and a majority of the spending is expected to relate to operating expenses.

The company's operational outlook includes a focus on boosting digital commerce and its digital transformation program. The company expects 2026 capital expenditures to be up to $1.5 billion ³⁹, including capital expenditures in connection with the ERP System Implementation program. The company had approximately 91,000 employees ⁴⁰ at December 31, 2025, with approximately 12,000 U.S. employees ⁴¹ and approximately 79,000 employees ⁴² outside the United States.

The company's capital allocation priorities include share repurchases and dividends. Effective January 1, 2025, the Board of Directors authorized a program for the repurchase of up to $9.0 billion ⁴³ of Common Stock through December 31, 2027. During the year ended December 31, 2025, the company repurchased $2.3 billion ⁴⁴, and as of December 31, 2025, had approximately $6.7 billion ⁴⁵ in share repurchase authorization remaining. The company paid dividends of $2,487 million ⁴⁶ in 2025. On July 29, 2025, the Audit Committee declared a quarterly cash dividend of $0.50 ⁴⁷ per share, an increase of 6 percent, which would be $2.00 ⁴⁸ per common share on an annualized basis. Capital expenditures were $1,279 million ⁴⁹ in 2025, $1,387 million ⁵⁰ in 2024 and $1,112 million ⁵¹ in 2023.

A significant headwind is the volatility of cocoa and other commodity input costs. During 2025, price volatility and higher aggregate costs were driven by soaring commodity prices, especially for cocoa beans, disrupted international supply chains, labor market challenges and increased transportation and labor costs. The company expects to continue to face elevated cocoa costs as compared to historical levels in the near- and medium-term. Another headwind is trade and regulatory uncertainty, as the U.S. maintains higher tariffs on imported goods from many trading partners, which have increased costs for finished products, ingredients, and packaging, and have resulted in retaliatory measures on U.S. goods entering foreign markets.

Geopolitical uncertainty, including the war in Ukraine, is a key constraint. The company has discontinued new capital investments and suspended advertising spending in Russia. Russia accounted for 3.7% ⁵² of 2025 consolidated net revenues and Ukraine accounted for 0.4% ⁵³ of 2025 consolidated net revenues. The war could result in the temporary or permanent loss of assets due to expropriation or further curtailment of the ability to conduct business operations in Russia, and Russian assets may become partially or fully impaired.

The company faces material risk from volatility in commodity and other input prices, particularly cocoa, which is a critical raw material. During 2025, price volatility and higher aggregate costs were driven by soaring commodity prices, especially for cocoa beans, and the company expects to continue to face elevated cocoa costs as compared to historical levels in the near- and medium-term. The company is subject to risks from operating globally, with 75.8% ⁵⁴ of 2025 net revenues generated outside the United States, exposing it to trade policy changes, tariffs, and geopolitical uncertainty, including the war in Ukraine where Russia accounted for 3.7% ⁵⁵ of 2025 consolidated net revenues. The company faces risks related to the execution of its strategy in a highly competitive industry, including the need to respond to channel shifts, pricing pressures, and changing consumer preferences. The company is also exposed to risks from unanticipated business disruptions, including cybersecurity threats, given its reliance on information technology and third-party service providers for global business processes. Additionally, the company faces risks related to tax matters, as changes in tax laws in the U.S. and other countries, including the One Big Beautiful Bill Act enacted on July 4, 2025, could materially affect its effective tax rate and deferred tax assets and liabilities.

Management's message emphasizes a strategy to be the global leader in snacking by focusing on growth, execution, culture and sustainability. The strategic plan builds on strong foundations including leadership in attractive categories, an attractive global footprint, a strong core of iconic global and local brands, and marketing, sales, distribution and cost excellence capabilities. The four strategic priorities for driving long-term growth are: accelerate consumer-centric growth, drive operational excellence, build a winning growth culture, and scale sustainable snacking. Management states that the successful delivery of the strategic plan will drive consistent top- and bottom-line growth and enable the creation of long-term value for shareholders. The company expects 2026 capital expenditures to be up to $1.5 billion ⁵⁶, including capital expenditures in connection with the ERP System Implementation program and for funding strategic priorities.