CHICAGO, USA – Mondelēz International, Inc. reported its fourth quarter and full year 2024 results. Net revenues increased 1.2 percent as Organic Net Revenue growth of 4.3 percent and incremental net revenue from our acquisition of Evirth was partially offset by unfavorable currency-related items and the impact of our 2023 divestiture of the developed market gum business. Organic Net Revenue growth was driven by higher net pricing, partially offset by unfavorable volume/mix.
Gross profit increased $493 million, and gross profit margin increased 90 basis points to 39.1 percent primarily driven by favorable year-over-year change in mark-to-market impacts from derivatives and an increase in Adjusted Gross Profit1 margin, partially offset by lapping the operating results from the developed market gum business divested in 2023 and costs incurred for the ERP Systems Implementation program. Adjusted Gross Profit increased $674 million at constant currency, and Adjusted Gross Profit margin increased 30 basis points to 37.8 percent due primarily to higher pricing and lower manufacturing costs driven by productivity, partially offset by higher raw material and transportation costs.
Operating income increased $843 million, and operating income margin was 17.4 percent, up 210 basis points primarily due to favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, higher Adjusted Operating Income margin and lower divestiture-related costs. These favorable items were partially offset by higher intangible asset impairment charges, lapping prior-year gain and operating results from the developed market gum business divested in 2023 and costs incurred for the ERP Systems Implementation program. Adjusted Operating Income increased $456 million at constant currency while Adjusted Operating Income margin increased 30 basis points to 16.2 percent, driven primarily by higher net pricing, lower manufacturing costs driven by productivity and overhead leverage, partially offset by higher input cost inflation.
Diluted EPS was $3.42, down 5.5 percent, primarily due to lapping prior-year gain on marketable securities, lapping prior-year gain on equity method investment transactions, 2024 net loss on equity method transactions including an impairment, lapping prior-year gain and operating results from the developed market gum business divested in 2023, higher intangible asset impairment charges and costs incurred for the ERP Systems Implementation program. These unfavorable items were partially offset by an increase in Adjusted EPS, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, favorable year-over-year change in mark-to-market impacts from commodity and currency derivatives, lower divestiture-related costs, favorable year-over-year change in initial impacts from enacted tax law changes and lapping prior-year impact from European Commission legal matter.
Adjusted EPS was $3.36, up 13.0 percent on a constant currency basis driven by strong operating gains, fewer shares outstanding, lower taxes, lower interest expense and higher benefit plan non-service income, partially offset by lapping prior year dividend income related to our former KDP investment.
Capital Return: Mondelēz International returned $4.7 billion to shareholders in cash dividends and share repurchases.
Mondelēz International: Fourth Quarter Commentary
Net revenues increased 3.1 percent as Organic Net Revenue growth of 5.2 percent and incremental net revenue from our acquisition of Evirth was partially offset by unfavorable currency-related items and lapping prior-year sales from a short-term distributor agreement related to the developed market gum business divested in 2023. Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.
Gross profit increased $241 million, and gross profit margin increased 130 basis points to 38.6 percent primarily driven by favorable year-over-year change in mark-to-market impacts from derivatives, partially offset by an decrease in Adjusted Gross Profit1 margin. Adjusted Gross Profit decreased $440 million at constant currency, and Adjusted Gross Profit margin decreased 650 basis points to 31.5 percent due primarily to higher raw material and transportation costs, partially offset by higher pricing and lower manufacturing costs driven by productivity.
Operating income increased $418 million, and operating income margin was 16.8 percent, up 400 basis points primarily due to favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, lapping prior-year impact from the European Commission legal matter, lower remeasurement loss of net monetary position and lower divestiture-related costs. These favorable items were partially offset by lower Adjusted Operating Income margin, lapping prior-year gain from the developed market gum business divested in 2023 and costs incurred for the ERP Systems Implementation program. Adjusted Operating Income decreased $396 million at constant currency while Adjusted Operating Income margin decreased 510 basis points to 10.0 percent, driven primarily by higher input cost inflation, partially offset by higher net pricing, overhead leverage and lower manufacturing costs driven by productivity.
Diluted EPS was $1.30, up 85.7 percent, primarily due to favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, gain on equity method investment transactions, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, favorable year-over-year change in initial impacts from enacted tax law changes, lower remeasurement loss on of net monetary position and lower divestiture-related costs. These favorable items were partially offset by a decrease in Adjusted EPS, lapping prior-year gain from the developed market gum business divested in 2023 and costs incurred for the ERP Systems Implementation program.
Adjusted EPS was $0.65, down 15.9 percent on a constant currency basis driven by a decrease in operating results and lower equity method investment earnings, partially offset by lower taxes and fewer shares outstanding.
2025 Outlook
Mondelēz International provides its outlook on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including the impact of foreign exchange. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details.
For 2025, Mondelēz International expects Organic Net Revenue growth to be approximately 5 percent. The company expects Adjusted EPS to decline approximately 10% on a constant currency basis due to unprecedented cocoa cost inflation. The company also expects 2025 Free Cash Flow of $3+ billion. The company estimates currency translation would decrease 2025 net revenue growth by approximately 2.5 percent3 with a negative $0.12 impact to Adjusted EPS3.
Outlook is provided in the context of greater than usual volatility, including due to geopolitical, trade and regulatory uncertainty and commodity prices. This outlook does not reflect any imposition of import tariffs by the U.S. and potential retaliatory actions taken by other countries, as the tariff and trade environment is uncertain and rapidly evolving at this time.
