Mondelez posted solid revenue growth in the fourth quarter of 2024, but profitability came under pressure due to skyrocketing cocoa costs. For 2025, the company expects earnings to further decline.
Growth overshadowed by cost pressures
Mondelez’ net revenue rose 3.1% to 9.6 billion dollars (9.27 billion euros) in the fourth quarter, driven by 5.2% organic revenue growth. However, this momentum was partially offset by unfavorable currency effects and the loss of revenue from the 2023 sale of its chewing gum business.
Operating income increased by 418 million dollars (403.8 million euros), resulting in an operating margin of 16.8%. However, the adjusted operating margin declined by 510 basis points to 10%, primarily due to the sharp rise in cocoa and transportation costs. Although Mondelez raised prices to partially offset these increases, it was unable to fully pass on the higher costs to consumers.
“Unprecedented” cocoa prices
For the full year 2024, Mondelez’s revenue grew by 1.2% to 40.5 billion dollars (39.10 billion euros). Organic revenue growth reached 4.3%, with price increases compensating for a decline in sales volumes (-1%). Adjusted earnings per share grew by 13.0% on a constant currency basis, reaching 3.36 dollars (3.25 euros).
In 2025, the Milka and Cadbury producer expects organic net revenue growth of approximately 5%. However, earnings per share are projected to decline by 10%, primarily due to the “unprecedented” cocoa cost inflation. The company also estimates that currency effects will reduce revenue growth by 2.5 percentage points. Yet, uncertainty around trade tariffs, geopolitical tensions, and commodity price fluctuations may lead to even more volatility.
