Mondelez International, Inc.

What they do

Mondelez makes and sells chocolate, biscuits and baked snacks as its core business, with additional businesses in gum & candy, cheese & grocery and powdered beverages. Its portfolio includes global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop in biscuits and baked snacks, and Cadbury Dairy Milk, Milka and Toblerone in chocolate. The company operates through regional units: Latin America, Asia/Middle East/Africa (AMEA), Europe and North America, and sells primarily through retail channels in both developed and emerging markets.

Revenue drivers

• Europe — Largest reported segment in Q2 2026 with $3,377 million of net revenues, but organic net revenues declined 3.5% on negative volume mix and pricing.
• North America — Q2 2026 net revenues of $2,633 million, up 3.0% reported and 3.4% organic, with positive volume mix of 1.2 pp and pricing of 2.2 pp.
• Asia, Middle East Africa (AMEA) — Q2 2026 net revenues of $1,971 million, up 8.2% reported and 7.1% organic, driven mainly by 5.2 pp of volume mix.
• Latin America — Q2 2026 net revenues of $1,374 million, up 15.1% reported and 8.4% organic, driven primarily by 7.9 pp of pricing.

Recent performance

Q2 2026 net revenues rose 4.1% to $9,355 million, with organic net revenues up 2.2% on 0.7 pp volume mix and 1.5 pp pricing. Reported diluted EPS increased 144.9% to $1.20, and adjusted EPS was $0.73, down 2.7% on a constant-currency basis. Gross profit margin rose to 42.6%, up 9.9 pp, driven largely by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency. Year-to-date 2026 net revenues were $19,435 million, up 6.2% reported and 2.6% organic; YTD adjusted operating income fell 9.5% reported and 12.8% constant-currency. Emerging markets grew 7.4% reported and 4.4% organic in Q2, while developed markets grew 1.9% and 0.7% organic.

Strategy

Management's strategy targets global leadership in snacking through four priorities: accelerating consumer-centric growth, driving operational excellence, building a winning growth culture and scaling sustainable snacking. The company is prioritizing its fast-growing core categories of chocolate, biscuits and baked snacks and investing in global and local brands. It plans to expand in high-growth channels and underrepresented segments and price tiers, while leveraging a global shared services platform and digital transformation to drive cost efficiency and digital commerce. Local teams have been given more autonomy to respond to consumer preferences, while the company continues to leverage regional operating scale.

Risks

• Cocoa and input cost inflation — Mondelez expects cocoa costs to remain elevated compared to historical levels in the near- and medium-term, pressuring margins despite pricing actions.
• Pricing elasticity hurting demand — Pricing increases taken to offset higher raw material costs have adversely impacted consumer demand, particularly in the United States and Europe.
• Tariffs and trade uncertainty — The company paid approximately $20 million of IEEPA tariffs, has received about $6 million in refunds as of June 30, 2026, and expects additional tariff actions to adversely impact revenue and cost of goods sold.
• Russia/Ukraine exposure — Mondelez continues to consolidate its Russian and Ukrainian subsidiaries; in Q2 2026 Russia generated 3.8% and Ukraine 0.4% of consolidated net revenue, with Russian profitability and assets above historic levels.

Outlook

Management says its overall outlook for future snacks revenue growth remains strong but anticipates ongoing volatility. The company expects cocoa prices to remain elevated compared to historical levels in the near- and medium-term even as they are below prior-year peaks. It also expects new or additional tariffs to adversely impact revenue and cost of goods sold and says impacts could be significant if further tariff actions are implemented. Mondelez announced a 4% increase to its quarterly dividend.