Mondelez (MDLZ) Q3 Earnings Meet Estimates, Sales Up Y/Y

Mondelez International, Inc. (MDLZ - Free Report) reported third-quarter 2020 results, with the top line surpassing the Zacks Consensus Estimate for the eighth successive time. Also, sales increased year over year. The bottom line was in line with the consensus mark during the quarter. However, earnings declined year over year. The company witnessed growth in developed markets, while performance in the emerging markets improved sequentially in the third quarter.

Q3 Performance

Adjusted earnings came in at 63 cents per share, down 1.6% on a year over year. The metric was in line with the Zacks Consensus Estimate of 63 cents. On a constant-currency (cc) basis, adjusted earnings were flat year over year on the back of operating gains, which were offset by unfavorable taxes.

Net revenues increased 4.9% year over year to $6,665 million. Sales surpassed the Zacks Consensus Estimate of $6,493.5 million. The upside was driven by strong organic net revenue growth of 4.4%. Favorable volumes and pricing were somewhat offset by an unfavorable mix.

Revenues from emerging markets declined 3.1% to $2,289 million, while the same increased by 5.3% on an organic basis. Revenues from developed markets increased by 9.6% to $4,376 million, while the same rose 3.8% on an organic basis.

Regional-wise, revenues in Asia, Middle East & Africa, Europe and North America increased by 3.6%, 6.3% and 12.9% year over year, respectively. However, the same declined by 17.1% in Latin America. On an organic basis, revenues increased 3.1%, 4.2%, 3.4% and 6.3% in Latin America, Asia, Middle East & Africa, Europe and North America, respectively.

Mondelez International, Inc. Price, Consensus, and EPS Surprise

Mondelez International, Inc. Price, Consensus and EPS Surprise

Adjusted gross profit increased $152 million at cc. Adjusted gross profit margin expanded 20 basis points (bps) to 39.9% thanks to volume leverage, improved pricing, and enhanced productivity. However, these upsides were partially offset by escalated raw material expenses and incremental pandemic-related costs.

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