Mondelez International raises its full-year forecast

Mondelez International, Inc. has announced third quarter 2014 results, reflecting strong Adjusted Operating Income margin expansion and Adjusted EPS growth as well as solid Organic Net Revenue growth. On a reported basis for the third quarter, net revenues were USD 8.3 bn, down 1.6%. Operating income was USD 853 m, down 32.4%, including a negative 27.3 percentage point impact from cycling the prior-year reversal of an indemnity accrual related to the 2010 acquisition of Cadbury and a negative 17.5 percentage point impact from restructuring costs.

The concern raised full year 2014 guidance for Adjusted EPS to USD 1.82 - USD 1.87 on a constant-currency basis and Adjusted Operating Income margin to approximately 13%. Year to date, reported net revenues were USD 25.4 bn, down 1.5%. Operating income was USD 2.7 bn, down 10.4%, including a negative 12.1 percentage point impact from cycling the prior year. Diluted EPS was USD 0.98, down 22 cents, including a loss of 18 cents related to debt extinguishment.

“We took another strong step toward our longer term margin goals in the third quarter,” said David Brearton, Executive Vice President and CFO. ”We continue to execute our cost-reduction programs to deliver sustainable margin improvement. As a result, we now anticipate Adjusted Operating Income margin of approximately 13% for 2014. Additionally, we’re increasing our Adjusted EPS target range by 9 cents as we pass through the benefits of tax and interest favorability, as well as operating gains.”

www.mondelezinternational.com