Mondelez International reported solid Q1 2026 results with strong top-line growth in emerging markets, driven by increased brand investments. While overall revenue and EPS showed year-over-year increases, adjusted metrics and margins faced pressure, reflecting ongoing macro volatility and cost inflation.
Net revenues increased 8.2% to $10,080 million, driven by favorable currency and organic net revenue growth.
positiveDiluted EPS increased 41.9% to $0.44, primarily due to favorable mark-to-market impacts from derivatives.
positiveStrong top-line growth in Emerging Markets (+11.4% reported, +6.3% organic) and Asia, Middle East & Africa (+14.3% reported, +11.3% organic).
positiveGross profit margin improved 170 basis points to 27.8%, driven by favorable derivative impacts.
positiveAdjusted EPS decreased 14.9% on a constant currency basis to $0.67, driven by operating declines and higher income taxes.
negativeAdjusted Gross Profit margin decreased 270 basis points to 30.7% due to higher input cost inflation and unfavorable volume/mix.
negativeAdjusted Operating Income margin decreased 310 basis points to 11.7% due to higher input costs, unfavorable volume/mix, and increased advertising/promotion costs.
negativeOrganic Net Revenue growth slowed to 3.0%, driven by higher net pricing offset by unfavorable volume/mix (-0.5%).
attentionFree Cash Flow decreased significantly by $660 million year-over-year to $155 million, impacted by lower operating cash flow and higher capital expenditures.
negativeInventories decreased by $340 million sequentially from $4,419 million to $4,079 million, but still represent a significant portion of current assets.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Latin America | N/A | — | — | — | +5.1% |
Asia, Middle East & Africa | N/A | — | — | — | +11.3% |
Europe | N/A | — | — | — | -0.6% |
North America | N/A | — | — | — | +0.5% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Solid first quarter results led by strong top-line growth in Emerging Markets.
Reflects strong execution of consumer-centric strategy supported by increased investments.
Fundamentals of the business remain strong.
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