Mondelēz International (MDLZ) Q3 2025 Financial Results Summary
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Mondelēz International (MDLZ) Q3 2025 Financial Results Summary
Released on October 28, 2025, Mondelēz International, Inc. reported its financial results for the third quarter of 2025. Despite facing challenges such as record-high cocoa costs and a decrease in diluted earnings per share, the company showed solid net revenue growth.
Key Highlights
- Net Revenues:
- Increased by 5.9% compared to the same quarter last year
- Organic Net Revenues grew by 3.4%
-
Volume/Mix decreased by 4.6%
-
Earnings Per Share (EPS):
- Diluted EPS decreased by 9.5% to $0.57
-
Adjusted EPS was $0.73, representing a decline of 24.2% on a constant currency basis
-
Operating Income:
- Reported at $744 million, a decrease of 35.5%
-
Operating Income Margin dropped 490 basis points to 7.6%
-
Gross Profit:
- Gross Profit reduced by 12.9% to $2.612 billion
-
Gross Profit Margin decreased by 580 basis points to 26.8%
-
Cash Flow:
- Year-to-date cash provided by operating activities was $2.1 billion
-
Free Cash Flow totaled $1.2 billion
-
Shareholder Returns:
-
Total return of capital to shareholders was $3.7 billion in the first nine months of 2025, which includes both cash dividends and share repurchases.
-
Outlook for FY 2025:
- Expected Organic Net Revenue growth of 4%+
- Anticipated Adjusted EPS decline of approximately 15% on a constant currency basis
- Free Cash Flow expected to exceed $3 billion
- Currency translation is estimated to contribute approximately 0.5% to net revenue growth and $0.05 to Adjusted EPS.
Regional Performance Breakdown
- Latin America:
- Reported Net Revenue of $1,238 million (up 2.8%).
-
Organic Net Revenue grew by 4.7% despite a Volume/Mix decrease of 4.0%.
-
Asia, Middle East & Africa:
- Reported Net Revenue reached $2,017 million (up 9.0%).
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Organic Net Revenue growth of 5.3%, with volume/mix down 4.0%.
-
Europe:
- Net Revenue was $3,674 million (up 10.6%).
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Organic growth of 5.1%, with a 7.5% decline in volume/mix.
-
North America:
- Reported Net Revenue of $2,815 million (a slight decrease of 0.4%).
- Organic Net Revenue declined by 0.3%, with volume/mix down by 1.8%.
Capital Management and Returns to Shareholders
- The company prioritized returning capital to shareholders amidst challenging conditions, with $3.7 billion returned in the first nine months.
- Dividends paid were highlighted, continuing the company’s commitment to returning value to shareholders.
Key Takeaways
The financial results for Q3 2025 indicate that Mondelēz faced substantial headwinds with declining profitability metrics and increased costs, particularly in the cocoa sector. Despite these challenges, the company was able to deliver modest revenue growth and maintain its commitment to returning capital to shareholders. With a cautiously optimistic outlook, Mondelēz is focused on navigating ongoing market volatility while executing strategic growth plans.
For further details, Mondelēz will host a conference call for investors at 5 p.m. ET on the release date, accessible via their corporate website.
Condensed Consolidated Statements of Earnings
(in millions of U.S. dollars and shares, except per share data)
| For the Three Months Ended September 30, | 2025 | 2024 | For the Nine Months Ended September 30, | 2025 | 2024 |
|---|---|---|---|---|---|
| Net revenues | $ 9,744 | $ 9,204 | Net revenues | $ 28,041 | $ 26,837 |
| Cost of sales | -7,132 | -6,205 | Cost of sales | -20,062 | -16,291 |
| Gross profit | 2,612 | 2,999 | Gross profit | 7,979 | 10,546 |
| Gross profit margin | 26.8 % | 32.6 % | Gross profit margin | 28.5 % | 39.3 % |
| Selling, general and administrative | -1,795 | -1,630 | expenses | -5,231 | -5,459 |
| Asset impairments and exit costs | -41 | -176 | Asset impairments and exit costs | -45 | -238 |
| Amortization of intangible assets | -32 | -40 | Amortization of intangible assets | -107 | -115 |
| Operating income | 744 | 1,153 | Operating income | 2,596 | 4,734 |
| Operating income margin | 7.6 % | 12.5 % | Operating income margin | 9.3 % | 17.6 % |
| Benefit plan non-service expense/income | -27 | 25 | Benefit plan non-service expense/income | -273 | 76 |
| Interest and other expense, net | -22 | -46 | Interest and other expense, net | -228 | -146 |
| Earnings before income taxes | 695 | 1,132 | Earnings before income taxes | 2,095 | 4,664 |
| Income tax provision | -137 | -326 | Income tax provision | -521 | -1,253 |
| Effective tax rate | 19.7 % | 28.8 % | Effective tax rate | 24.9 % | 26.9 % |
| Gain/(loss) on equity method investment | 169 | -4 | Gain/(loss) on equity method investment | 169 | -669 |
| transactions | |||||
| Equity method investment net earnings | 19 | 54 | Equity method investment net earnings | 54 | 133 |
| Net earnings | 746 | 856 | Net earnings | 1,797 | 2,875 |
| less: Noncontrolling interest earnings | -3 | -3 | less: Noncontrolling interest earnings | -11 | -9 |
| Net earnings | $ 743 | $ 853 | Net earnings | $ 1,786 | $ 2,866 |
| Per share data: | Per share data: | ||||
| Basic earnings per share attributable | $ 0.57 | $ 0.64 | Basic earnings per share attributable | $ 1.38 | $ 2.13 |
| to Mondelēz International | to Mondelēz International | ||||
| Diluted earnings per share attributable | $ 0.57 | $ 0.63 | Diluted earnings per share attributable | $ 1.37 | $ 2.12 |
| to Mondelēz International | to Mondelēz International | ||||
| Average shares outstanding: | Average shares outstanding: | ||||
| Basic | 1,293 | 1,339 | Basic | 1,296 | 1,343 |
| Diluted | 1,296 | 1,344 | Diluted | 1,300 | 1,349 |
Condensed Consolidated Balance Sheets
(in millions of U.S. dollars)
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | $ 1,367 | $ 1,351 |
| Trade receivables | 4,189 | 3,874 |
| Other receivables | 1,049 | 937 |
| Inventories, net | 5,098 | 3,827 |
| Other current assets | 1,444 | 3,253 |
| Total current assets | 13,147 | 13,242 |
| Property, plant and equipment, net | 10,333 | 9,481 |
| Operating lease right-of-use assets | 750 | 767 |
| Goodwill | 24,250 | 23,017 |
| Intangible assets, net | 19,611 | 18,848 |
| Prepaid pension assets | 1,132 | 987 |
| Deferred income taxes | 437 | 333 |
| Equity method investments | 669 | 635 |
| Other assets | 1,029 | 1,187 |
| TOTAL ASSETS | $ 71,358 | $ 68,497 |
| LIABILITIES | ||
| Short-term borrowings | $ 2,645 | $ 71 |
| Current portion of long-term debt | 1,543 | 2,014 |
| Accounts payable | 10,022 | 9,433 |
| Accrued marketing | 2,650 | 2,558 |
| Accrued employment costs | 956 | 928 |
| Other current liabilities | 3,696 | 4,545 |
| Total current liabilities | 21,512 | 19,549 |
| Long-term debt | 17,134 | 15,664 |
| Long-term operating lease liabilities | 611 | 623 |
| Deferred income taxes | 3,451 | 3,425 |
| Accrued pension costs | 356 | 391 |
| Accrued postretirement health care costs | 95 | 98 |
| Other liabilities | 1,970 | 1,789 |
| TOTAL LIABILITIES | 45,129 | 41,539 |
| EQUITY | ||
| Common Stock | — | — |
| Additional paid-in capital | 32,299 | 32,276 |
| Retained earnings | 36,390 | 36,476 |
| Accumulated other comprehensive losses | -11,464 | -12,471 |
| Treasury stock | -31,048 | -29,349 |
| Total Mondelēz International | 26,177 | 26,932 |
| Shareholders’ Equity | ||
| Noncontrolling interest | 52 | 26 |
| TOTAL EQUITY | 26,229 | 26,958 |
| TOTAL LIABILITIES AND EQUITY | $ 71,358 | $ 68,497 |