DEERFIELD, Ill., U.S. — Mondelēz International, Inc. yesterday reported its second quarter 2019 results. Net revenues declined 0.8% driven by unfavorable currency impacts. Organic Net Revenue1 grew 4.6%, through a combination of volume/mix and pricing. Diluted EPS was $0.55, up 162%, lapping prior-year impact from pension participation changes. Adjusted EPS1 was $0.57, up 9% on a constant-currency basis.
Year-to-date cash from operating activities was $1.0 billion. Free Cash Flow1 was $581 million. Return of capital to shareholders was approximately $700 million. Raising Organic Net Revenue and Adjusted EPS growth outlook for full year. The company announced a 10% increase to quarterly dividend
“Our strong second quarter performance demonstrates the potential of our strategy to accelerate volume-driven top-line growth in both developed and emerging markets,” said Dirk Van de Put, Chairman and CEO for Mondelēz International. “Our more consumer-centric mindset is driving investments in advertising and promotion of our global and local brands, as well as accelerated innovation and improved distribution capabilities, building a sustainable foundation for long-term growth and value creation for our shareholders.”
Key Strategic Initiatives
- Mondelēz continued to make good progress against the strategies of accelerating consumer-centric growth, driving operational excellence and building a winning growth culture this quarter. Examples included:
- Expansion of Channels and Key Markets: investing in fast-growing sales channels, including e-commerce, and winning in high-potential emerging markets
- Investment in Global and Local Brands: continuing momentum on two of the company’s largest brands, Oreo and Cadbury Dairy Milk, as well as reigniting local jewels like Nutter Butter in the U.S., which celebrated its 50-year anniversary with double-digit growth in the quarter
- Partnerships and M&A: entering nutrition bars with Perfect Snacks acquisition
- Marketing & Sales Excellence: leveraging the company’s leadership in the chocolate category by driving growth and gaining share in key markets with best-in-class Easter execution
- Continuous Cost Improvement: maintaining cost discipline throughout the organization with ongoing initiatives like waste reduction in the U.S. network and embedded ZBB processes
- Local First Culture: delivering efficiencies including a 40% reduction in business planning meetings in Europe as a result of the company’s new structure and culture
- Speed, Agility and Simplicity: getting innovation to market faster like new Cadbury Go Nuttier in the U.K., leveraging Agile methodology and a pilot launch
- Sustainable Snacking: advancing in the company’s sustainability journey this quarter with the publication of the company’s Impact 2025 commitments, including its goals to source 100% of cocoa for its chocolate through Cocoa Life and achieve 100% packaging recyclability. In addition, the company reached an agreement with Enel Green Power to source solar power in support of its goal to cut CO2 emissions in manufacturing by 15% by 2020.