Mondelez Surpasses Third Quarter Predictions, Shares Surge on Strong Results

CHICAGO - Mondelez International, Inc. (NASDAQ:MDLZ) reported third-quarter earnings and revenue that exceeded expectations, causing shares to rise 1.5% in after-hours trading. The snack food giant recorded strong growth and reaffirmed its full-year outlook.

Mondelez reported adjusted earnings of $0.99 per share, surpassing analyst estimates of $0.85. Revenue for the quarter was $9.2 billion, exceeding the consensus estimate of $9.11 billion, representing a 1.9% increase year-over-year. Excluding the effects of acquisitions and foreign exchange fluctuations, organic net revenue grew by 5.4%.

"We achieved strong results in the third quarter with accelerated top-line growth, solid earnings, and attractive cash flow generation," said Chairman and CEO Dirk Van de Put. "These results stem from our commitment to excellence in execution across our categories, markets, and brands."

The company reaffirmed its 2024 outlook, expecting organic net revenue growth to be at the upper end of the 3% to 5% range, with adjusted earnings per share showing high single-digit growth on a constant currency basis. Mondelez anticipates free cash flow of over $3.5 billion for the year.

In the quarter, volume and product mix grew by 0.3%, while diluted earnings per share fell 12.5% to $0.63. Year-to-date, cash generated from operating activities was $3.5 billion, and free cash flow was $2.5 billion.

Mondelez also announced that it has signed an agreement to acquire a majority stake in Evirth, one of China's leading cake and bakery producers, as part of its strategy to expand its premium product range in the rapidly growing cake and bakery segment.