Mondelez International Inc - Class A

Mondelēz International delivered a beat-across-the-board second quarter despite an operating environment defined by crushing cocoa cost pressures, with adjusted EPS of $0.73 clearing the $0.68 consensus estimate by 7.69% and revenue of $8.98 billion topping expectations by 1.71% while growing 7.7% year over year. The headline numbers, however, obscure significant underlying strain: adjusted gross profit margin contracted 680 basis points to 33.7% as raw material inflation, particularly in cocoa, forced the company to absorb costs that aggressive pricing could only partially offset, with organic revenue growth of 5.6% driven by 7.1 points of pricing but hampered by 1.5 points of unfavorable volume and mix. The dynamic mirrors broader pressure across the chocolate industry, where cocoa supply disruptions in West Africa have pushed input costs sharply higher. Looking ahead, management held its full-year outlook steady, targeting approximately 5% organic revenue growth while guiding for an approximately 10% decline in constant-currency adjusted EPS, with free cash flow of $3 billion or more expected for 2025.