Mondelez Reports Significant FY25 EPS Decline Amid Cocoa Headwinds; Provides Modest FY26 Outlook

summarizeSummary

Mondelez International reported a substantial decline in full-year 2025 diluted and adjusted EPS, primarily due to unprecedented cocoa cost headwinds, while Q4 adjusted EPS showed modest growth. The company provided a cautious outlook for 2026.

check_boxKey Events

• Full-Year 2025 EPS Decline

  Reported diluted EPS decreased 44.7% to $1.89, and adjusted EPS declined 14.6% on a constant currency basis, primarily due to cocoa cost headwinds.

• Q4 2025 Adjusted EPS Growth

  Fourth quarter adjusted EPS increased 4.6% on a constant currency basis to $0.72, showing some operational improvement.

• FY26 Outlook Provided

  The company forecasts 2026 Organic Net Revenue growth of flat to 2% and Adjusted EPS growth of flat to 5% on a constant currency basis, with Free Cash Flow of approximately $3 billion.

• Impact of Cocoa Costs

  Management cited unprecedented cocoa cost headwinds as a significant factor impacting profitability in 2025.

auto_awesomeAnalysis

Mondelez International's full-year 2025 results indicate significant profitability challenges, with reported diluted EPS falling by 44.7% and adjusted EPS by 14.6% on a constant currency basis. This decline is largely attributed to 'unprecedented cocoa cost headwinds' and unfavorable mark-to-market impacts from derivatives. While the fourth quarter showed some resilience with adjusted EPS growing 4.6% on a constant currency basis, the overall annual performance reflects a difficult operating environment. The company's 2026 outlook projects modest organic net revenue growth of flat to 2% and adjusted EPS growth of flat to 5% on a constant currency basis, suggesting continued caution. Investors will likely focus on the company's ability to manage commodity costs, drive volume growth, and achieve its stated cost savings and brand investments to improve profitability in the coming year.