Mondelez Dips 2% Following Q4 Print
Shares of Mondelez International Inc (NASDAQ: MDLZ) were trading lower by more than 2 percent early Wednesday morning after the company reported its fourth quarter results.
Mondelez it earned $0.46 per share in the fourth quarter on revenue of $7.36 billion. Wall Street analysts were expecting the company to earn $0.49 per share on revenue of $7.3 billion.
Diluted EPS was a $(0.46) per share in the quarter, including a $0.48 per share impact related to a Venezuela accounting change, a $(0.19) impact from the adjustment to the coffee transaction (combining the company's wholly owned coffee business with those of D.E Master Blender to create a new company, JDE) and a $(0.09) impact from unfavorable currency rates.
Mondelez also posted an operating loss of $557 million during the fourth quarter, down 194.6 percent,
Organic net revenue rose 4.7 percent during the quarter as the company raised prices of certain products to recover currency-driven inflation in emerging markets. Of note, organic net revenue from emerging markets rose 12.4 percent while organic net revenue from operations in developed markets was essentially flat.
Looking forward to fiscal 2016, Mondelez expects to see organic sales growth of at least 2 percent and an adjusted earnings per share growth in the double-digit range. The company also guided its adjusted operating income margin to increase from 13.7 percent in 2015 to 15-16 percent in 2016 and 17-18 percent in 2018.
"We remain confident in our ability to execute our transformation agenda despite weakening macroeconomic conditions in emerging markets," said Irene Rosenfeld, Chairman and CEO. "As a result, in 2016, we expect to deliver another year of strong margin expansion and double-digit EPS growth on a constant currency basis by continuing to reduce supply chain and overhead costs. We also expect underlying organic revenue growth that's in line with our categories as we prudently invest behind our Power Brands and innovation platforms. In addition, we'll continue to build on this momentum going forward and now have clear line of sight to an Adjusted Operating Income margin of 17 to 18 percent in 2018, which represents about a 400 basis point improvement from 2015."
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