Successful Year For Mondelēz International
Mondelēz International, the global snacking group, has reported a 2.8% rise in net revenue to $26.58 billion for 2020, primarily driven by organic growth of 3.7% and incremental sales from the company’s acquisitions of Perfect Snacks in July 2019 and Give & Go, which was completed in April 2020, partially offset by unfavorable currency impacts. Organic net revenue grew in all four regions – North America; Europe, Latin America; and Asia, Middle East & Africa.
Mondelēz International’s operating income increased by 0.3% to $ 3.853 billion and operating income margin was 14.5%, down 40 basis points primarily due to lower year-over-year mark-to-market gains from currency and commodity derivatives, higher intangible asset impairments, costs associated with the JDE Peet’s transaction, lapping the prior-year gain on a divestiture and lapping the benefit from prior-year pension participation changes, partially offset by the favorable change from the resolution of tax matters (a benefit in 2020 as compared to an expense in 2019) and lower restructuring costs.
Dirk Van de Put, Chairman and CEO of Mondelēz International.
The company returned $3.1 billion to shareholders in cash dividends and share repurchases during the year.
For 2021, Mondelēz International expects performance in line with its long-term growth algorithm of 3+ percent organic net revenue growth, high single-digit percent adjusted EPS growth on a constant currency basis and free cash flow of $3+ billion.
Dirk Van de Put, Chairman and Chief Executive Officer of Mondelēz International, comments: “2020 was a successful year for Mondelēz International and I am proud of our performance, including record share gains, in a challenging operating environment. Our categories were resilient, with the exception of gum which represented 5% of our revenue in 2020. The strength of our brands was evident, as was the dedication of colleagues around the world who executed with excellence in difficult circumstances. We made meaningful progress with our strategic agenda in 2020, continuing to increase investment in brands and capabilities, simplifying our portfolio, expanding into adjacent categories and making acquisitions in high growth areas of snacking. We moved quickly to mitigate incremental COVID-related costs and delivered on our commitment to generate strong cash flow.”
He adds: “We enter 2021 in a strong position financially and in the marketplace which gives us confidence that we can deliver on our long-term growth targets in 2021 and beyond.”
