Mondelez International Posts Sweet Earnings Beat; MDLZ Stock Runs On A Sugar High

Chocolate and snack company Mondelez International's stock reached new highs after the company reported higher-than-expected earnings.

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Jun 7, 2023 • 2 min read

Mondelez International's (MDLZ), a confectionery, snack and beverage firm, beat its first-quarter expectations.

The Chicago-based company Mondelez produces chocolate, biscuits and candy as well as gums and powdered drinks. It is one of the biggest snack companies and supplies sweets to more than 150 different countries. Mondelez has a portfolio that includes Oreos, Toblerones, Ritzs, Chips Ahoys, Cadburys, belVitas, Trident and many other brands.

According to the website, Mondelez holds the number two spot in chocolate and is the leader of biscuit sales worldwide, including cookies and crackers. The website claims that Mondelez is the global leader in biscuit sales, including cookies and crackers. It also holds the No. 2 spot for chocolate.

Results: Mondelez's adjusted earnings jumped 17.3%, to 89 cents a share. Revenue grew 18.1% to $9.17 Billion. GAAP earnings soared 149%, to $1.52 a share. Management noted that organic revenue increased 19.4%.

FactSet polled analysts who expected earnings to fall 3.6%, to 81 cents a share. Sales would increase 9% to $8.46 Billion.

In 2022, Mondelez is expected to average a quarterly growth of 4.25% and an increase in sales of 9.75%.

Mondelez's outlook is for organic net revenues to increase by more than 10% between 2023 and the current forecast of 5%-7%. The company expects to see adjusted earnings rise by 10% or more compared with the previous outlook of high single digit growth. Mondelez maintained its outlook for free cash flow at $3.3 billion and above. The company claims that the updated outlook is a reflection of the strong performance it has had so far this year.

Mondelez, however, estimates that currency translations in 2023 will increase net revenue by around 2%. This would result in a reduction of adjusted earnings per share (EPS) by 9 cents.

Analysts expect earnings to rise 7.5% in fiscal 2023 to $3.17 a share, on sales that will increase 11% to $34.96 Billion.

According to IBD Stock Checkup, Mondelez International is ranked second in the Food-Confectionery Group. Only Hershey, the world's largest chocolate maker, is ahead of it.

MDLZ's stock climbed nearly 3.9% Friday to 76.72, reaching a record intraday high of 78.59 as it continued ascending from the buy zone of its flat base. The first time the shares surpassed the 68.91 buying point was on March 24.

The stock of Mondelez has soared by 18.5% in the last three months, and is up 15.1% for this year.

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