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Mondelez stock boosted following Q4 earnings beat

Yahoo Finance food reporter Brooke DiPalma breaks down Mondelez International's earnings report.

Video Transcript


DAVID BRIGGS: Ritz crackers, Philadelphia Cream Cheese, Oreos-- a few of my favorite products made by Mondelez. You can see, shares popping a bit after hours, after reporting their fourth quarter earnings beat. Yahoo Finance's Brooke DiPalma here to break down the numbers. You got to love Ritz crackers. If you don't, we're not friends.

BROOKE DIPALMA: Oh, we are certainly friends, Dave. Because I love Ritz crackers. And it turns out investors do too. Oreo maker Mondelez, certainly beating on both the top and bottom line here as consumers look to their favorite chocolate treats, and perhaps those Ritz crackers, during inflation. As you can see here, they posted a Bed revenue coming in at $8.7 billion. Adjusted earnings per share, coming in at $0.73-- both higher than Wall Street's expectations, largely driven by pricing and volume.

CEO, saying that on the release today. As I noted before, consumers are hammered by their spending power. But they are still flocking to those known brands like Oreos, their favorite here. In addition to that, taking a closer look at full-year revenue here, jumping across all markets. Latin America, up nearly 30%. Asia, Middle East, and Africa, up nearly 5%. Europe, up 2.4%. North America, up 16.6%.

CEO, noting that these results were underscored by the strength in emerging markets-- largely Latin America. In addition to that, they also did note that drivers of this past year, as well as the fourth quarter results, were based upon acquisitions of Clif Bar, among other acquisitions. But they were offset by unfavorable currency that impacted across the board in 2022.

In addition to that, they did note that they announced an agreement with Perfetti Van Melle to acquire developed markets of gum business. So of course, they are the makers behind Trident and Stride. Those businesses are in US, Canada, and Europe. That deal, expected to close in the fourth quarter of 2023.

Another announcement made on this earnings release is a $6 billion share buyback program that's expected to go through December of 2025. So lots to unpack as investors and Main Street certainly look to this company for a sweet relief, I guess you could say.

DAVID BRIGGS: Toblerone. Legendary airport purchase, the Toblerone. Cadbury is pretty good, too. All right. What are analysts looking for on the call? What do they want to hear?

BROOKE DIPALMA: Yeah. Well, I really think they do want to understand how exactly the consumer is responding during this time-- largely looking, as Easter is around the corner, for that Cadbury purchases perhaps. Are they responding to a higher price? Are they still going to flock to those favorite treats, especially upon the Easter season?

I think, in addition to that, they definitely want to hear more on just the impact that we're seeing overseas, as Europe continues to work through those high inflationary pressures as we heard from other executives, like McDonald's, today on the call. In addition to that, as we spoke to Mondelez last year, and I believe what was 2021, Ukraine continues to be a major business for them. So perhaps analysts hoping to hear more on that front, as well.

DAVID BRIGGS: A huge number in Latin America-- about 30% revenues. Brooke DiPalma, thanks so much. Good to see you, my friend.