Mondelēz earnings down 29% in third quarter
DEERFIELD, ILL. — Net income at Mondelēz International, Inc. in the third quarter ended Sept. 30 totaled $652 million, equal to 37c per share on the common stock, down 29% from $922 million, or 52c per share, in the same period a year ago. Net revenues in the quarter also were lower, falling 2% to $12,909 million from $13,226 million.
Operating income totaled $1,652 million in the third quarter, down 3% from $1,698 million in the same period a year ago.
The most recent financials include the results of Kraft Foods Group, Inc., which was spun off on Oct. 1. Beginning in the fourth quarter of fiscal 2012, Kraft Foods Group’s historical financial results for the periods prior to Oct. 1, 2012, will be reflected in Mondelēz’s financial statements as a discontinued operation.
Breaking down the standalone financial results for Mondelēz International on an adjusted pro forma continuing operations basis, operating income for the third quarter ended Sept. 30 was $1,091 million, up 2% from $1,068 million in the same period a year ago. Net revenues for Mondelēz totaled $8,326 million, down 5% from $8,778 million.
“As we expected, our top-line growth this quarter was modest,” said Irene Rosenfeld, chairman and chief executive officer. “This reflected the lapping of our exceptional performance in the third quarter last year and a lower contribution from pricing. We also had some short-term executional missteps in a few key countries, but these issues should be largely resolved by the end of the year. Growth in our core categories continues to be robust. And we remain confident in our ability to deliver our 2013 and long-term targets.”
Mondelēz said strong U.S. biscuit performance drove solid top- and bottom-line growth in North America, where operating income was $293 million, up 14% from $256 million, and sales were $1,768 million, up 2% from $1,735 million.
“Biscuits in the U.S. increased mid-single-digits, reflecting the benefits of a more focused direct-store delivery sales force,” Mondelēz said. “Gum and candy was flat as double-digit growth in candy and the launch of Stride ID offset weakness in other gum brands. The region’s Power Brands grew 9%, led by Honey Maid, Ritz, Triscuit and Oreo biscuits and Halls candy.”
Mondelēz reaffirmed its 2013 net organic revenue growth outlook to be at the low end of the company’s long-term growth target of 5% to 7%, and operating earnings per share to be $1.50 to $1.55.
For the nine months ended Sept. 30, net income at Mondelēz International (including Kraft Foods Group, Inc.) was $2,494 million, or $1.40 per share, down 8% from $2,697 million, or $1.53 per share, in the same period a year ago. Net sales totaled $39,288 million, down 1% from $39,677 million.
As a standalone, Mondelēz operating income in the nine months was $3,244 million, up 5% from $3,095 million in the same period a year ago. Net sales were $25,520 million, down 2% from $26,131 million.