Mondelez International Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did MDLZ Beat Earnings? Q3 2025 Results
Mondelēz International posted a mixed but technically better-than-expected third quarter, with adjusted EPS of $0.73 edging past the $0.71 consensus estimate by 2.95% even as the figure marked a sharp 24.2% decline on a constant-currency basis from the prior year. Revenue of $9.74 billion, up 5.9% year-over-year and modestly ahead of the $9.68 billion consensus, masked a painful underlying story: record cocoa cost inflation drove gross margin down 580 basis points to 26.8% and compressed adjusted operating margin by 690 basis points to 12.0%, as the company leaned heavily on 8.0 points of pricing to offset surging input costs, triggering a 4.6-point volume and mix decline as consumers across developed and emerging markets pulled back. The dynamic echoes broader pressure felt across the packaged food sector, where peers have similarly flagged demand softness tied to pricing-driven consumer resistance. Looking ahead, Mondelēz now guides for full-year organic revenue growth of 4% or more and adjusted EPS declining roughly 15% on a constant-currency basis, with management pointing to signs of cocoa price moderation as a potential tailwind into 2026.
- Record-high cocoa cost inflation, with Q3 representing peak costs of the year
- Higher net pricing of 8.0 percentage points drove organic revenue growth
- Unfavorable volume/mix of -4.6 percentage points across all segments
- Adjusted gross profit margin declined 1,010 basis points to 30.4% due to higher raw material and transportation costs
- Lower manufacturing costs driven by productivity partially offset input cost inflation
- Acquisition of Evirth contributed incremental net revenue
- Favorable currency-related items contributed to reported revenue growth
“We delivered solid top-line growth despite the impact of record-high cocoa cost inflation, with the third quarter representing peak costs of the year. Although we anticipate challenging conditions to continue in some markets, we are encouraged by recent moderation in cocoa prices, as well as promising signs for a strong cocoa crop this fall. Our teams are focused on executing clear plans for volume improvement, significantly increasing growth investments, and driving meaningful cost efficiencies. We remain confident in our teams' proven track record of navigating volatility, as well as our strong business fundamentals, which position us well for next year and beyond.”
Mondelez International CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2025, Mondelēz now expects Organic Net Revenue growth of 4%+ and Adjusted EPS to decline approximately 15% on a constant currency basis. The company continues to expect Free Cash Flow of $3+ billion. Currency translation is estimated to increase 2025 net revenue growth by approximately 0.5% and increase Adjusted EPS by $0.05. The outlook is provided in the context of greater than usual volatility, including geopolitical, trade, and regulatory uncertainty and commodity prices, and does not reflect any potential tariff changes to USMCA-compliant trade.
MDLZ YoY Financials
MDLZ Revenue by Segment
MDLZ Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.