- Confirms strong long-term growth prospects and competitive advantages as a global snacking leader
- Unveils evolution of long-term strategy to accelerate growth and focus portfolio on attractive chocolate, biscuits and baked snacks categories
- Updates long-term algorithm to 3% - 5% Organic Net Revenue growth, up from 3%+
- Continues portfolio reshaping to accelerate growth and focus
“Our competitive advantages in the marketplace and focused strategy on global snacking leadership give us great confidence in our ability to sustain strong top- and bottom-line growth for many years to come,” said
The Company will continue to prioritize Growth, Execution and Culture as three pillars of its strategy – investing in differentiated marketing and sales capabilities, while strengthening its local-first operating model to further empower employees and promote a growth culture. Recognizing the urgent challenges facing the planet and the communities in which it operates, the Company also is elevating Sustainability to become a fourth pillar in its long-term growth strategy. By further advancing its Snacking Made Right agenda across a focused set of environmental, social and governance priorities, Mondelēz International aims to help drive positive change at scale – creating long-term value for both the business and its stakeholders.
Accelerated Growth and Portfolio Focus
Mondelēz International is reshaping its portfolio, with a long-term vision to accelerate growth and generate 90% of revenue in chocolate and biscuits, including baked snacks. Chocolate and biscuits are attractive and historically durable categories in both developed and emerging markets, with significant headroom to increase penetration and per capita consumption.
The Company will strengthen its presence in its core categories in major markets by building on existing distribution, expanding in high-growth channels and leveraging its iconic brands to establish multi-category leadership positions.
As it continues to reshape its portfolio, Mondelēz International will drive value through organic growth and targeted acquisitions that expand its presence in chocolate, biscuits and baked snacks by filling geographic gaps and extending into under-represented segments and price tiers. The eight acquisitions Mondelēz International has completed or announced since 2018 add
Additionally, the Company announced plans to divest its developed market gum business after completing a strategic review over the past year. The Company also disclosed its intention to divest the global Halls business. Mondelēz International will continue to operate other brands and products within its candy business, as well as its emerging market gum business.
Investing in Capabilities and Culture
To enable its refined growth strategy, Mondelēz International announced significant investments in capabilities and culture – including investing more than
“Our growth ambition will not be possible without the passion, dedication and commitment of our people – the very best in the consumer packaged goods industry,”
Updating Long Term Growth Algorithm
Mondelēz International is updating its long-term growth algorithm to 3%- 5% Organic Net Revenue growth, up from 3% plus previously, to reflect the evolution of the strategy. The Company continues to expect Adjusted EPS growth on a constant currency basis in the high single digits and gradually increasing Free Cash Flow of
The Company is confident it can accelerate and sustain profitable growth and achieve this refined long-term algorithm as a result of:
- Increasing portfolio focus on the core of chocolate and biscuits
- Taking both organic and inorganic steps to fill geographic white spaces
- Expanding distribution in high-growth channels where the Company has clear headroom to grow
- Increasing presence in under-represented segments and price tiers
- Attracting, developing and retaining the best talent in the CPG industry
“Consistent delivery against our financial commitments, investment in the long-term health of our brands and the capabilities of our people – combined with our key competitive advantages – position us well to create significant value for our stakeholders,” said Luca Zaramella, Mondelēz International’s Chief Financial Officer.
Webcast and Materials
The investor update presentation and presentation slides will be available in the investors section of the Company’s website (www.mondelezinternational.com), and a recording of the event will also be available on the website after the presentation.
About Mondelēz International
Mondelēz
End Note
Organic Net Revenue, Adjusted EPS, Free Cash Flow and presentation of amounts at constant currency are non-GAAP financial measures. For definitions of these non-GAAP financial measures and how the Company uses them to evaluate performance, as well as why the Company is not able to reconcile these forward-looking measures to their most directly comparable GAAP financial measures, please refer to “Definitions of the Company’s Non-GAAP Financial Measures” and “Outlook” in Exhibit 99.1 to the Company’s Form 8-K furnished with the
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words, such as “will,” “expect,” “may,” “aim,” “intend,” “plan,” “position,” "prospect," “target,” “guidance,” “outlook” and similar expressions are intended to identify the Company’s forward-looking statements, including, but not limited to, statements about: the Company’s strategic priorities and growth strategy, including acceleration and portfolio evolution; the Company’s evolution, leadership positions and future potential; the Company’s future performance, including its future revenue growth, profitability, earnings per share and cash flow; the Company’s competitive advantages; currency and the effect of currency translation on the Company’s results of operations; the Company’s strategy to accelerate consumer-centric growth, drive operational excellence, create a winning growth culture and scale sustainable snacking; the Company’s business and opportunities in developed and emerging markets; channel and category expansion and growth, including digital commerce; productivity initiatives; marketing effectiveness; the Company’s investments and the results and potential of those investments; portfolio reshaping; strategic transactions, including the Company’s planned divestitures of its developed markets gum and Halls businesses; the Company’s environmental, social and governance strategies, goals, targets and initiatives; value creation for shareholders; and the Company’s long-term growth algorithm. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, and many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic, including the spread of new variants of COVID-19 such as Omicron. Important factors that could cause the Company’s actual results to differ materially from those indicated in the Company’s forward-looking statements include, but are not limited to, the impact of ongoing or new developments in the war in
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