FDBusiness.com

Mondelēz International has reported a 0.1% decrease in net revenues to $25.896 billion, driven by divestitures that offset organic net revenue growth and currency tailwinds. Organic net revenue increased by 0.9%, which included a negative impact of approximately 40 basis points from the June malware incident.

Operating income margin was 13.5%, up 360 basis points, driven by adjusted operating income margin expansion, lower 2014-2018 Restructuring Program costs, benefits from the resolution of tax matters and a net gain on divestitures, partially offset by malware incident incremental expenses. Adjusted operating income margin expanded 130 basis points to 16.3%. These results reflected supply chain productivity savings and reductions in overhead costs.

“We are pleased with the solid results for 2017,” says Brian Gladden, Chief Financial Officer. “We delivered a strong year of margin expansion and earnings growth, marking significant progress from four years ago. Our improved top-line performance was fuelled by our Power Brands and favourable trends in emerging markets.”

“I’m very excited about the opportunities ahead to create value at Mondelēz International,” says Dirk Van de Put (pictured above), Chief Executive Officer. “We have strong foundational pillars in place, and we enter the year with improving momentum in our business. Our 2018 plan reflects an emphasis on execution, ongoing improvements in top-line growth and continuing actions to expand margins. As we develop our long-term strategic plan for sustainable growth, we’re focused on how we can optimize and accelerate our strengths to create more moments of joy for our consumers, customers, communities, colleagues and shareholders.”

For 2018, Mondelēz International expects organic net revenue to increase 1 to 2% and adjusted operating income margin of approximately 17%.