Mondelēz faces macroeconomic uncertainty, including fluctuating consumer demand, inflationary pressures, supply constraints, and exchange rate volatility. Higher cocoa and other raw material costs are a concern. Geopolitical risks, like the war in Ukraine and Middle East conflicts, impact sales and operations. Legal proceedings, including a European Commission investigation, pose potential financial penalties. The company's ERP system implementation involves significant operating expenses. Currency fluctuations, especially in Argentina, create remeasurement losses. The effectiveness of hedging strategies is uncertain.
Financial Upside
Mondelēz saw net revenue growth in Q3 2024, driven by higher pricing and favorable volume mix. Organic net revenue increased. Adjusted operating income and EPS increased in both Q3 and the first nine months of 2024. The company has significant remaining share repurchase capacity. Acquisitions, like Evirth, and divestitures, like the gum business, are expected to contribute to future results. The company expects to continue to generate substantial cash from operations.
