8-K: Mondelz International Highlights Sustainable Growth and Cakes & Pastries Opportunities at CAGNY Conference

Mondelz International showcases its continued growth, portfolio transformation, and commitment to long-term value creation, emphasizing opportunities in the cakes and pastries market at the 2025 CAGNY Conference.

Summary

• Mondelz International presented at the 2025 Consumer Analyst Group of New York (CAGNY) Conference, highlighting its sustainable growth strategy.
• The company is focusing on its core categories of chocolate, biscuits, and baked snacks.
• Mondelz is also targeting growth in the cakes and pastries market, where it currently holds the #3 global share position.
• In 2024, Mondelz achieved 4.3% organic net revenue growth and 5.1% adjusted gross profit dollar growth, despite rising cocoa costs.
• The company's cakes and pastries business generates $2 billion in revenue.
• Mondelz is focused on disciplined capital allocation, including growth-accretive M&A and balance sheet flexibility.

Sentiment

Score: 8

Explanation: The document presents a positive outlook for Mondelz International, highlighting growth, strategic initiatives, and market opportunities. The emphasis on sustainable growth and value creation further contributes to the positive sentiment.

Positives

• Mondelz International delivered 4.3% organic net revenue growth in 2024.
• The company achieved 5.1% adjusted gross profit dollar growth in 2024.
• Mondelz has a strong position in the cakes and pastries market with a $2 billion business and #3 global share.
• The company is focused on disciplined capital allocation and growth-accretive M&A.

Risks

• The company faces record cocoa input cost inflation.
• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

Future Outlook

Mondelz International aims to continue delivering against its long-term growth algorithm, focusing on portfolio reshaping and strong execution to derive 90% of revenue from chocolate, biscuits, and baked snacks, while also winning in the fast-growing cakes and pastries category.

Management Comments

• Dirk Van de Put, Chair and CEO of Mondelz International, stated that the company's strong foundation of iconic brands and attractive categories position it for continued value creation.
• Luca Zaramella, Chief Financial Officer, emphasized the company's focus on acquiring the right opportunities, executing a strong integration plan, and accelerating growth in newly acquired brands.

Industry Context

Mondelz's focus on the cakes and pastries market reflects a broader trend in the food industry towards expanding into adjacent categories to drive growth. The company's emphasis on sustainable growth aligns with increasing investor and consumer demand for environmentally and socially responsible business practices.

Comparison to Industry Standards

• Mondelz's organic net revenue growth of 4.3% in 2024 is comparable to other major players in the packaged food industry, such as Nestle and PepsiCo, which have also reported similar growth rates.
• The company's focus on the cakes and pastries market mirrors similar moves by competitors like Grupo Bimbo and Hostess Brands, which have established strong positions in this category.
• Mondelz's commitment to sustainable growth aligns with industry-wide efforts to reduce environmental impact and improve social responsibility, as seen in initiatives by companies like Unilever and Danone.

Stakeholder Impact

• Shareholders can expect continued focus on value creation and growth.
• Employees may see opportunities for growth and development within the company.
• Customers can anticipate innovative products and brand extensions.
• Suppliers may benefit from the company's continued growth and expansion.
• Creditors can expect disciplined financial management and balance sheet flexibility.

Next Steps

• Mondelz International will continue to advance its portfolio reshaping and strong execution to deliver 90% of revenue from chocolate, biscuits and baked snacks.
• The company will focus on winning in the fast-growing, $97 billion cakes and pastries category.
• Mondelz will continue to unlock value through cash generation and disciplined capital allocation.

Key Dates