DEF 14A: Mondelz International Reports Strong 2024 Performance, Focuses on Sustainable Growth

Mondelz International delivered balanced top-line growth and strong earnings in 2024, reinvesting in the business and returning $4.7 billion to shareholders.

Summary

• Mondelz International had a strong year in 2024, delivering balanced top-line growth and strong earnings despite a challenging operating environment.
• The company reinvested in its brands, expanded distribution, and improved capabilities to position itself for sustainable growth.
• Approximately $4.7 billion was returned to shareholders through dividends and share repurchases.
• E-commerce business grew at a double-digit rate.
• The company purchased Evirth, a Chinese frozen-to-chilled pastries leader, and partnered with Lotus Bakeries for co-branded chocolates.
• About 90% of cocoa volume was sourced through the Cocoa Life program.
• Carbon emissions from manufacturing operations were reduced by about 38% compared to the 2018 baseline.
• Approximately 80% of snacks revenue came from individually wrapped mindful portion serving sizes or labeled with clear mindful portion recommendations.
• The company is adapting product sizing and pricing to address rising cocoa costs and investing in brand communications and store visibility.
• The company is working to improve the resilience and stability of the cocoa supply chain through direct sourcing, agronomy improvements, and alternative technologies.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong financial performance and progress on strategic initiatives. While challenges are acknowledged, the overall tone is optimistic and confident in the company's ability to navigate them.

Positives

• Strong top-line growth and earnings were achieved in 2024.
• Significant progress was made toward sustainability objectives.
• The company is adapting to challenges like rising cocoa costs.
• The company is well-prepared for anticipated shifts in food policy and consumer preference.
• The company has a leading and talented team.

Negatives

• The company faces unprecedented increases in the cost of cocoa, its largest commodity.
• The company faces heightened volatility in the global business environment.

Risks

• Unprecedented increases in the cost of cocoa pose a significant challenge.
• Shifts in food policy and consumer preference could disrupt operations.
• International trade developments could create challenges.
• The company faces heightened volatility in the global business environment.

Future Outlook

The company remains focused on executing its long-term growth strategy and is confident in its ability to navigate input cost headwinds and evolving external environments.

Management Comments

• 2024 was another strong year for Mondelz International.
• We delivered balanced top-line growth, as well as strong gross profit dollar growth and earnings, while reinvesting in the business to position ourselves for sustainable growth.
• We delivered to you, our shareholders, approximately $4.7 billion through dividends and share repurchases.
• We remain confident that chocolate is a fundamentally strong category, and that our playbook will enable us to successfully navigate these input cost headwinds.
• With the right strategy, the right brands, the right geographic footprint, and most importantly, the right people Im confident that we are well positioned for attractive long-term growth.

Industry Context

The announcement highlights Mondelz International's efforts to lead the future of snacking while addressing sustainability concerns, reflecting a broader industry trend towards responsible and sustainable business practices.

Comparison to Industry Standards

• The company's commitment to sourcing 90% of cocoa volume through the Cocoa Life program aligns with industry efforts to promote sustainable cocoa farming, similar to initiatives by Hershey and Mars.
• The company's carbon emissions reduction target of 38% compared to the 2018 baseline is in line with the science-based targets adopted by other major consumer goods companies like Unilever and Nestle.
• The company's goal of having approximately 80% of snacks revenue from mindful portion sizes is comparable to efforts by PepsiCo and General Mills to offer healthier snacking options.
• The company's focus on e-commerce growth mirrors the strategies of competitors like Nestle and Danone, who are also investing heavily in digital channels.
• The company's capital allocation strategy, balancing investment in growth and returning cash to shareholders, is consistent with the approach of other large consumer packaged goods companies like Procter & Gamble and Coca-Cola.

Management Changes

Corporate Governance

Related Party Transactions

• BlackRock, Inc. acted as an investment manager with respect to certain investment options under our U.S., Canadian and Puerto Rican retirement savings plans and Canadian, Irish and U.K. pension plans. BlackRocks fees were approximately $4.0 million during 2024.

Stakeholder Impact

• Shareholders will benefit from the company's strong financial performance and return of capital.
• Employees will benefit from the company's commitment to a positive work environment and talent development.
• Customers will benefit from the company's focus on providing great-tasting snacks and mindful snacking choices.
• Suppliers will benefit from the company's commitment to responsible sourcing and sustainable practices.
• Communities will benefit from the company's philanthropic activities and contributions.

Next Steps

• The company will continue to execute its long-term growth strategy.
• The company will continue to adapt product sizing and pricing to address rising cocoa costs.
• The company will continue to invest in brand communications and store visibility.
• The company will continue to work to improve the resilience and stability of the cocoa supply chain.
• The company will continue to prepare for anticipated shifts in food policy and consumer preference.

Key Dates

Keywords

Mondelz International, financial performance, sustainability, cocoa, growth strategy, shareholder value, executive compensation, corporate governance, risk management, board of directors, proxy statement, annual meeting, snacking