Mondelez International (MDLZ)

Shep Dunlap Vice President, Investor Relations
Dirk Van De Put Chairman & Chief Executive Officer
Luca Zaramella Chief Financial Officer
Filippo Falorni RBC Capital Markets
Brian Spillane Bank of America
Chris Growe Stifel
Alexia Howard Bernstein
Jason English Goldman Sachs
Pamela Kaufman Morgan Stanley
Call transcript
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Good day and welcome to the Mondelez International Third Quarter 2021 Earnings Conference Call. Today's call is scheduled to last about one hour, including remarks by Mondelez management and the question-and-answer session. [Operator Instructions] I'd now like to turn the call over to Mr. Shep Dunlap, Vice President Investor Relations for Mondelez. Please go ahead, sir.

Shep Dunlap

for thanks and afternoon joining us. Good today, and CEO, me are CFO. Dirk Chairman our Put, de and Van With Luca our Zaramella, Earlier our our which out today, and we slides, presentation press are website. release on available sent

in During risk things Company's based These XX-K, the more statements refer our performance. and results Actual the we factors may this statements we due statements to see uncertainties. forward-looking X-K to will risks call, and how forward-looking filings about on make details on contained statements. today. are of differ cautionary XX-Q, materially Please for our

As financial we results measures, noted result. included unless non-GAAP for we'll adjusts GAAP as items certain reported, discuss our which in our be referencing our today,

constant In growth addition, results. comparability, on currency presenting We're a otherwise on given COVID we to revenue also noted. the provide unless our provide a XXXX CAGR on basis, basis two-year of better impact year-over-year growth

the our strategy today's our find will and can Luca presentation. results comparable In a to call, and and GAAP you take will of then slide outlook. financial back and business release You the provide earnings reconciliations the measures within update, Dirk GAAP through non-GAAP at

with to Q&A. I'll We will call over that, close the Dirk. turn With

Dirk Van De Put

continuation and as joining of used execution, as market pricing COVID higher the those very strong pre environments. as remains Thanks, growth in are emerging of innovation. of a developed inflationary higher remains QX for high was activation, solid in than Jeff. for a Demand result we our the markets quality multiple executed volume as that both within share to, our categories everyone in result categories, markets, and And of actions strength and light pricing thanks successfully marked contribution to our by across the we for marked top-line today. growth call another quarter well business. from These

poses in markets shortages As environment a as the as the you truck include and input cost operating inflation U.S. currently globally, we industry, that very in multiple of know, like challenges. rest dynamic well are and UK. like These labor the

the including pricing We appropriate and taking are to rounds navigate further cost of actions control. these,

hear will and on accelerated we top-line call. requires our and delivering moment current driven confident the virtuous, later the Despite remain in brands myself our our from Luca long-term environment, in strategy both which operating focused more a capabilities. this a growth You on in cycle, continuous investment in and through of

the X Let me consumer. to turn Slide and

much in to as now levels Ongoing is remain indulgence, which been pre-COVID as and candy, COVID, expected channel, but at this trend travel the uncertainty and confidence benefiting continues throughout as about general Mobility a India, Europe, stabilized and Latin gum provides which QX, geographies. Western improved well and a During ours. to the both boost in like of has consumers with fueling America for a trusted those finances in confidence of job least desire consumer call-out below through is rise, are personal prospects XXXX. notable course of to optimistic more are retail brand comfort and consistent

the and to are period. have for drinking on the historical all essentials spent share gained elevated from like home. emerging pre-COVID, lockdowns. elasticity All to contributing in strong COVID core Demand for our markets, treats of are they The than Consumers categories our markets our which especially this more developed portfolio, willing smaller are which during means but towards top Vietnam, benefiting. On is consumption or less levels. they price continued were this, we a COVID and that so faster is pay affordable growing of below demand is Not in-home categories skews in withstanding few suffering eating outside that markets. as

companies, other current moved higher the on X. have the half pronounced transportation Like cost inflation Costs are relative cost U.S. we and the to in moment a spend second most which particularly me in packaging, environment Slide are experiencing the half, Let of on globally, due XXXX. to operating is in like of on significant volatility trucking to also There supply first in at with an containers chain gap the UK. element demand the we and persist in labor combined and and inflation third-parties, between capacity U.S. supply and of expect a shortages places year

The quarter. a our support Southeast and And This felt new In in in as that to China continues to we unlock centers additional acutely good in had now certain give news at the growth in in strike temporary capacity geographies. flexibility was the resolved, contracts as for in The impacted of X disruption be is resulted demand outstripped aware, Vietnam, the example. Asia the many COVID-XX in addition, electricity factory are most has energy of of also our cause in a QX you X plants our shortages and U.S. ambition. us closure in strike there supply but is distribution might our output and areas. production

equipped strength are Although our deliver challenging, our we to believe of dynamics. these are managing against brands, through continued pricing on investments, our our to well necessary, continue objectives, We and execution. as all we focus given the

in support quarter is as continues we results indicator EPS growth healthy drive growth, X.X% which And of profitable, X the growth well deliver Turning year-to-date, be chain high cycle. growth continuing ability the be slide but inflation adjusted sorry, part single-digit of Gross outlook X, can in X% the and the our pricing in by our is long-term We cost X.X% over to financial capital consistently and that to to return a a year-to-date, deliver you first of X%, our to lapping and see our ability by very consider XXXX. X.X% quarters was of profit our grew that algorithm. to XXXX volatility impacted supply and QX, to revenue to driven shareholders. strategy needed a volume our virtuous

last Slide our execution mean have and XX% brands capabilities, portfolio growth year-to-date in activation cumulative of long-term of are we basis, record on performance Our our or X-year strategy gaining we or a media across we launching holding line of and working can are have And to year. of cash realize runway versus opportunities to share year-to-date. These advantage -- combined QX X.X% And advantage we higher X. that increased year. our year-to on based plus X growth pricing enablers believe purpose-led increased consistently generation of of necessary. to rate. investment, enablers, increased since that we with double-digit the grow see investments the free and approximately Adding X% on averaging long marketing, cash can last And algorithm of growth to we of versus when revenue XXXX, the year-to-date for in flow slide our them. quality shareholders. return, and by returned capital track late instance, capital show quarterly our we our And include, $X.X $XXX and million now revenue terms a in And billion our excess we on brand in you

Gaga increasing and selling XXXX, in this Oreo XXX,XXX growth by India on continued surpassing the presence lapping includes quarter, U.S., high also billion Oreo Pokemon, year. our and where XX% make drivers. This by reported like key distribution which of our in exposures XX,XXX like against China added set includes our quarters. fastest this to gain previous activations where we These grew channels are like And quarter Lady to emerging previous another XX% in with our the Oreos. This the end expanding growth which to we underrepresented. segments, the this a on we progress And to $X commerce, addition Game markets include also Thrones basis, of digital places with journey continue records our by growth of in stores continuing became grow finally, all-time and of key

brands breakthrough to For on being, suitable clear and this the the has Plant well innovation to in is potential in Bar largest announced expand UK, sugar where other which vegans, with Cadbury the our example, China, which Oreo for quarter Zero we geographies. our

our XX, critical our and issue facing Slide part is we you to me Turning a Climate let help. must journey. our sustainability on to update do planet change

We Company. a returns, must consistent also want if we long-term growth know snacking be deliver we to that sustainable and shareholder

For materials emissions we carbon also those the ambition for by which our allow applies This necessary take net below all business our plan our initiative degrees greenhouse our to where us focusing we In gas XXXX. net-zero contributors X, that raw announced case, to scopes join of strengthening from target our Nation's sees recently believe actions targets by X will to X.X the we of to well science-based previous across achieve emissions. our the X This highest to deliver emissions commitment will that that target footprint. X, We X position reasons, campaign, is are X. that United we degrees. contribute race a the as major and XX% on well us as

will programs equity, sustainable Tolko agenda, to And owned sourcing, of diversity, our net-zero will we in Alongside our wheat towards will advance Support We of net-zero other all harmony emissions, leveraging amplify technology ESG this. life packaging. at inclusion, existing low focus and we and operations. ingredient emerging carbon our including on like pillars working continue and

to I'm investments, deliver sustainable our ESG our excited journey and our for our confident executional a will details come. preferred Luca to more strategy, our financials. With With continue brands, are strong performance Company. we enhanced compounding for are to proven to that, our that over build hand We agenda, I well-positioned to snacking excellence, on years our

Luca Zaramella

and Dirk, good you, afternoon. Thank

board. with more dollar grew on growth branding significant the quarter, Our X-year including and cost excellent They and by inflation. profit XX% strong volume nearly third We strong displaying accelerated a execution. flow. good basis. goal, our categories than solid markets quarter cash to trends, X% underpinned counter Emerging across implementing we been grew was investment that have X.X% the continued delivered growth, pricing resilience for of unprecedented the performance and operating and top-line Revenue free

high in results growth emerging and as Our markets markets China, us. growth Brazil, single-digit attractive Africa. as These double-digit are Mexico, India, and for Russia, well growth include engines in

as power spaces, and continues white feel, distribution consumers that's we As consumer up. as pursue trade purchasing expansion we to grow,

We them big way. in continue to invest a behind

limited developed X% trends are X%. For robust X these America. consumption Albeit, restrictions growth, average of Demand chain supply specifically growth markets at North the quarter and remains growth with year solid markets. our in a

Brazil, high the from Gum quarter. more average Biscuits China and X% all single-digits, and portfolio grew to than Russia, continues mobility. France and and X%. The than standout grew double-digit and delivered with growth, a resulting a growth, XX and performer. year two while grew growth more India posted performance. mid-single-digits. Milka India, candy Slide mid-single-digits. more Russia Mexico double-digits. to on Brazil, for posted grew continued and be two-year grew a Lacta than Cadbury, Turning average. Oreo Chocolate X.X% XX% UK volume-led of grew improvement robust a in double-digit and

Moving to share XX. performance slide on market

have to gain U.S., base. and a base, South continue primarily gainers Russia, a see community performance our X-year chocolate basis to due Brazil we gaining gum share the include good of We heads China, year has the XX% candy Chocolate. On share on held of and shown in gained China, or and business. U.K., Africa and Australia, in Notable revenue scaled, X in or These performance. of France. and skits XX% and Gum share Russia, Russia, XX% B our in revenue basis

level, pre-COVID mobility improve trends. still to continues below Although with this category

as inflation quarter, North in Moving elevated page impact for and X% commodities, grew labor transportation the acute costs dollars XX, in America. profit reflecting to of well Gross as the

elevated they as other increases in display deal significant adopted month our all XXXX, have promo still But line expectations. GP to pricing spending go we the we environment. persist inflation, and into dollars growth which with we the at of price markets. face announced our taken across Of announced cost of all trade year. new in we and expect will a the U.S., next have of into number dynamics effect round these short-term, While also note, some a start to the regions last In

robust markets a not agenda too. as pricing cost in are the also Although pressures for we as U.S. have other high

Southeast to addition in units. have Mexico, in We Russia, business implemented and Asia, pricing Brazil, other

Our funds simplification goal X.X% profitability dollar to remains these XXXX overhead dollars investment. initiatives. actions levels increased which management from Operating to to enter income strong support virtuous due cycle improved continues and with the

that's in was invest which year-to-date X% grown quarter. margin has up double-digit dollars nearly operating X%. the a On to more while continue than gross increased increased has A&C basis, in income double-digits. almost We by A&C,

a -- X.X% Overall, strong grew regional growth virtual year, X XX. revenue on resulting a Operating third-party service logistics X.X% to on average X.X% last Moving a and and results results dollars while in and impacting U.S. X% the as the America These have primarily quarter Slide year, in Europe declined income constraints growth of two-year transportations X-year quarter. grew both basis, by America cost in last were in grew constraints of cycle. and shortages partners. X.X%. versus are impacted impacted reflecting manufacturing X.X% on the our X.X% top North level [Indiscernible]. negatively North external labor

expect with recently of in We improve next much effect that our announced of conjunction increases to dollar Xst U.S. as growth into profit portfolio year. January price go across

COVID XX% growth income investments. strength India AMEA with our strike it. America X% restrictions the make business AMEA mitigated continuing grew where both Mexico and increasing from growth prior delivered will in Nevertheless, there nearly delivered posted continuity double-digits ahead quarter, and in sizable Latin and in double-digits and included outlook. impact the route quarter growth. China an the Asia inventory year grew to did grew discuss a and For dollars impact to X-year QX. while our broad-based will grew X.X% growth. Latin plan, double-digit in the was by X-year single-digit X.XX% six-week in pricing of -related high of U.S. Southeast I average. to working over due of impact a QX, market of QX XX% volume dollars America media be levels which average on Brazil apart and a while operating which

at XX. constant EPS X%. increase primarily driven turning X.X% Now, Slide nearly EPS QX operating year-to-date increased EPS by currency, on with gains, of to

flow a $X.X year-to-date cash third delivered to cash the We free to return Slide and billion capital basis. on of million $XXX bringing XX. Moving in flow us on quarter,

despite in and total costs also reduced quick attractive in a been by Slide three on and us at in net prices. around first best spend repurchased time, We driving I initiatives we of in $X.X maturity to-date XX% in cost significantly X.X in some same pension in expense approximately funding improvements facture average has shares has September, the from on Since current Similarly effectively improved the At wanted have billion financing the our X.X%. to X.X our the a approximately quarters with of borrowings in to pension moment requirements XX. costs XX% costs. XXXX, the years we rate interest our increase now reductions an And the years. issued first GPG our pension extended material recent and years contribution our was X target. sector, enabling fund [Indiscernible], which largest sustainability to carbon significant focal packaging to

our inflation, a The with capacity. spend environment cost current environment like at transportation others train on the chain me chain remains many the shortages slide and a XX as [Indiscernible] moment for higher challenge Let and actions. as regarding and labor well Xrd-parties supply us, supply

These strategy, price additional brand. in include increases strength as the to improve of simplification SKU We over time. of overall levels supply opportunities mitigate RGM and pressures and a to supported implementation of service have journey our of successful by our continuing rate [Indiscernible] part well-established We're portfolio also inflation efficiency. the to reduction chain and our impact identify of

terms of network, are networks. In plants in our to some and manufacturing capacity actions with our more up free of logistics flexibility taking we

are will growth, input these the dollar lumpiness the with will which commodities, allow long-term looking cost majority drive we programs this increase. currently given continue of unrealized at key pressures us effective, are believe of that and to some our as we pricing albeit gains the of also seeing and and year. cadence to can we initiatives execute mark-to-market tell you Overall, offset confident by profit been hedging realized We have our

our on to Slide Moving outlook XX.

Growth increased high on focus level our Management of the expect QX strong in QX raising outlook trends, have Based people, capabilities. taker continued emerging into revenue X and resilience, solid full-year to trends of and our transportation X.X%. approximately We categories headwind and most U.S. to and of assumes continued inflation supply continued This wider North QX, that growth extend our X% for our markets, American friends, recent of including growth in nearly our we experienced in on labor two-year region, the demand are a brands both in of demand robust implies businesses, or impact we year-to-date, Revenue transportation from and X.X% a investment a across developed on activities and categories and constraints top-line chain span markets the approximately and of and the point in results the logistic strikes pressure

reflect fluid, a this current conditions does worsening outlook environment. remain the material not market As from

terms In labor commodities and the in and for growth we initial the America. continue pressure expect high single-digit full despite of year to EPS, North transportation from dynamics

of expect We flow free plus. billion $X also generation cash

positively by EPS from Forex the to related One rates. impact and is now to plan. translation note our year expected restructuring grow current revenue reported our simplified to X% points, based by market on $X.XX

as the X to program is return million funds about we're high and related We program have of of year left available with still The chain extended overheads projects. restructuring supply by we spend unchanged. on overall plan the amount that $XXX

next in not anything does for our this So outlook this year. else change

Our are our worsening factor wrap on the brands current environment for degradation in that across of geographies. of does triggered would a updated trajectory be categories our is To and COVID by the and outlook conditions supply up, on significant material or operating encouraged chain not based we by restrictions. demand

management, up flow let's for cost against that, to With business, and strategy open going growth, and our top balance and cash it strong line continued means Q&A. forward. are reinvestment confident our in our and We generation. This bottom consistent continue growth in disciplined it free to ability execute


Barclays. Lazar take [Operator question a Instructions] from We'll of Andrew

is line open. Your

Andrew Lazar

much. for X me. Great, thanks very

more behind little for give Luca sales the growth and seeing the more bottom key could a bit emerging key bit the deceleration there, developed if and touch dynamics on so you if talk trends about in then Dirk, then line. could and First, top consumer and a rationale both markets, us much. implied maybe you're and XXXX, expectations you preliminary XQ organic in Thanks really

Dirk Van De Put

markets, The Brazil, time if is volume growing emerging double-digit be this and I only Mexico, us. very consumer, at as personal Andrew. where CAGR, in at that the X-year vaccine in the talked serious is markets, but effect see our where Luca. consumer they're on QX Southeast seeing high to quiet of X is which they hand about particularly it and life for engine parts They consumption. our single-digit India, Africa, QX, Pakistan, roll in double-digit. Particularly more what they're continue Asia, in The I home, over so a operating in U.S. you, then the their Vietnam linking the same and they are smaller double-digit, on spent a first has in We strong we're temporary. the but at places high going growth markets with start to Well, that time what plant categories. some better look about strong well. that that emerging developed is we closed like I will is restrictions. at China be markets improving think the the k I'll I disruption their big severe seeing for Year-to-date, America, a out, confidence the looking they execution the those And some In At very and in an they reflected they're normal. major markets, there are countries Poland, being back Thank finances challenging was particularly strong to Latin feel all hopefully demand grew to growing growth entered X still that they're quarter. good it's a benefits COVID and very had strong Russia. But India say, so pricing. same time, single-digit growth, and growth can bric weeks, environment, and in countries would cases were there in we've seeing From

had where so home But U.S. is where lapping were X% that over growing So we well particularly and in X% up in markets. average the year-to-date QX before benefiting behavior in a at spending just And are pandemic; a than strong consumption in developed very at is we categories portfolio. see last we our the spikes big the the if above in year. in it's we our over two-year you XXXX, we were But and where far look X%. CAGR, X% more That XX% about XXXX, clearly is consumer consumer on time revenue

the while thing least XXXX we've at The X%, and a Maybe for are We've a more second than well for or Europe, here in would other Looking done, mobility. to is specifically in in labor the And last Nordics. the -- very last had we as the and our mass got still the recovery then -- was North year-to-date, and almost will slightly from and CAGR demand service now QX. robust regaining the a a in strong strong I quarter, half, say on been plan at inflationary convenience travel the prices for growth resolved, quite North impact consumer we're in a extremely categories due time challenges as the the seeing of growing But that benefiting two-year year-to-date revenue to biscuits, increase year-to-date we lapping a good. very America. is UK, pressures America, Company. to core very an for retail growth that remains retail, in which that is very the course Germany, environment. an robust. year on I'm declining in for the it's particularly We've versus is probably the is which increasing and have solid demand solid but impact but strike, year. an QX strong very continue we're year logistic again, capacity, third-party servil and prices

below good elasticity For are almost speak and what is historic levels of. to the nothing levels that is

performance. overall over the helping is that Maybe to you, Luca. So

Luca Zaramella

revenue as far revenue business Andrew. Thank place. you, would Dirk And with fundamentally good as simply in is and say start hi the I I'll guidance. a goals,

might seen our pricing pages might you presented share are two-year the Chocolate and On gains in have are categories also is have a very that contribution increasing that And noticed You vibrant. Biscuit we stock, that good. as you is are we the cost that businesses would say can well all for positioned volume expect and We up that given facing. are pressures But very both quite QX well. holding also virtually international also XXXX.

North predominantly, chain, America, that X-week and Dirk obviously the demand in some the where putting good. volatility our However, the on is strike a is performance, mentioned, but will QX is that market also the steadily pressure positive quite and in supply context impact

we the estimate be of impact whole revenue because of of strike that for there point a that QX, X So the Mondelez. will mostly pressure in

the there I end So pressure in quite have full-year and one-time is and are fact, is feel to feel transportation and X%, And pressure considering in supply flat. versus all pressure that high-single-digit the regions some in good believe standpoint, we and into at by with know, GP still recognize momentum dollar the that GP that most up, dollars America for terms And a QX outlook. our we line some line GP From is industry-wide double-digits The it increasing it in impact. driving be last chain declined to this at XXXX. revenue EBIT QX context is region sum said is, that, to all In going top about also and there over of above the feel the is we XXXX. EPS of year-on-year. year-to-date the to comfortable close that with or the compounded, growth up by only guidance QX in think that you of quite profit North with our will X% into goal profitability GP XXXX. Having by X% partly frankly, into costs is in A&C the commodity due where a its I good I strike constraints. a quarter, to when about point, GP quarter, and other year persist I good

taking the cost are to those We spikes. appropriate counter actions

We X% increase in have take effect a which in list U.S, to price the January. announced recently will XXXX, X%

We have Western across in also Southeast Europe. Russia, announced Brazil, QX Mexico, Asia, pricing in Africa, and

We going after times, are productivity cost general and RGM said measures. also we leveraging as many

sequential pricing improvement versus kicks we the more in following previous as years So expect quarters in.

at point, this that increases be volume through So believe obviously EBITDA point. growth A&C still we pricing, XXXX mix at we're meaningful our and this solid productivity, contemplating will

So algorithm on and today. we because should be based pressure XXXX and will bit what an more earnings next EBITDA the we a from in little comprehensive know standpoint cycle on more for [Indiscernible] QX obviously be provide guidance will clear XXXX.

Andrew Lazar

Thank you.

Luca Zaramella

Thank you, Andrew.


question Our next Capital is from Nick RBC Markets. Modi of

Filippo Falorni

This for Nick. guys. on afternoon, good Falorni is Hey, Filippo

Luca Zaramella

Filippo. Hi

Filippo Falorni

this average, growth to since consistently back organic X% for X% you clearly I just year. a range your now, just pretty raised for strategy, guidance to guidance new sales you've implementation the go of organic and that of you've on shown plus, long-term quarters want slide on several delivered a Hi, your and

was outlook growth and I X% going a your in confidence of forward? organic sales consistently raising potentially wondering long-term So going forward delivering just your

Luca Zaramella

Maybe I'll here. Yes. and [Indiscernible] start obviously the

Looking end, the see we the as algorithm a long-term baseline.

Our look good and gain a been have X if start clearly to share. to levels, plan growing percent, We is they that place categories you plus at at historical -- from.

more on the with that the In really are And executing than end, drives a So algorithms. we is to by always should be we X we and focused baseline. that's than actuals aim well, closer number what with obviously, long-term mark X% this above X. being at

namely than plus. If we algorithm in algorithm. I the right, the long-term behind higher portfolio the be that that and some and track record some X% more opportunity But And acquisitions, revisit so rationale that's formally something aim really to good for there are I us end, for the you're think the catalyst, the will at think changes declare speaks we have itself.

delivering we steadily and higher do forward. so been to going have plan We growth also

Filippo Falorni

a then And quick helpful. that's much, very you follow-up. Thank it. Got

over like global your how Your a very been in market last extremely your years, Oreo and local some you last couple well. about recent and share performance brands year strong bit or of of quarters have just they've talk so? and been done the recently over brands has the Can doing

Dirk Van De Put


our been been a -related our local ed but of in global changes than activations. jewels global by grew accelerating faster local global COVID largely we have There number was growth than and because faster and growing jewels have through our of different. historically, impact our jewels, brands XXXX local consumer So behavior. the brands our renovations brands were

So Trident of cough travel reduced limited because instance, Hall's gum very mobility. the because Toblerone, by and retail impacted season. then because And was cold was category for decline, it

If faster global brands local brands very growing And than declining strongly. w'are ago, you our are in a XXXX very to Both -- the now mid-single-digit. few group. XXXX, look local I where are single-digit as growing mid at [Indiscernible]. at are this again But then from moment, said, flat both years happy are now, they're year-to-date with

to up and to continue local activate jewels over going step we're to continued time. more investments We year-over-year brand

to the ideal balance, keep we So as on to going we think continue and we've we found are. continue --

Filippo Falorni

it on. pass guys. Thanks, I'll Great.

Dirk Van De Put



from Thank Goldman We'll take Ken JPMorgan. you. next our of question

next to And want check to open. switch, may Spillane. of site is line mute Mr. line Your move We'll your is you open. your the Goldman, Brian

open. is line Your Of America. of Bank

Bryan Spillane

Good Hi, Operator. afternoon, everyone. thank you,

Luca Zaramella

Hi, Brian.

Bryan Spillane

So quick for ones just me. two X.

for commentary XQ, the on Luca. follow-up a Just

you line. on gross Are gross to listening of deterioration? further a margins to similar XQ in saw quarter expect and going be we what the of somewhat fourth profit puts do or in the kind the to Just some takes

Luca Zaramella

pressure. a went some pricing, Versus a we bit which additional into last specifically July, markets have implementing little in they effect be better. in We less little are year, August. should Remember, emerging bit should

it so when to be year. And last better should compared sequentially

Bryan Spillane

I in but it think sequentially? just what third Year-over-year, about quarter. XX.X% was the

fourth going that is So be quarter in to neighborhood?

Luca Zaramella

Yes, it around a would most number. likely little be pure bit on neighborhood a that lower,

Bryan Spillane

rounds pricing then taking to be offset it'll And on And time. perspective the just guess you're different Okay. Dirk, that your how incremental inflation. I of this

you just and And time it to prior definitely different, it around demand, kind versus a to go your the the Mondelez, at was pricing the Mondelez or a been big and lean different build you you've we you've in change to ability approaching build into or just really what's an or will of there tried way could that that how margin? the if talk taken this so --to was on your volume over be time protect time to quite think Mondelez of dynamic I about what pricing part of had address about on pricing margins. maybe to one of time how it's this time power maybe thought impact have and protect last came to some to bit issues back pricing about coming

Dirk Van De Put

build mix, Yes. that, principal, we're on to I use our how top increase inflation, it. the mean, to as the a volume we whole of program, what is to offset a do pricing, the about think extra it margins. not we're and from growth, which different And then the trying as needs the trying from we extra pricing, productivity mixture those between trying aggressive of of we we to have that's comes we're sense pricing, three then productivity on the It's it past through because programs. mixture margin things, And is. the maintain as are not in that

continue is difference increase that our in our we big the versus investment other year-over-year past The brands. to

much A&C our into also pot, are media. all, overall of working but A&C First shifting then how we within

you prices the increase I your is not increase brands. can think do, for your and support So worst

supporting been and our now more. we've more every So brands year

that increased Our X brand the X, see has health increasing. years pressure can media significantly is versus We ago.

So better. our differences, versus and it the what more two to I the pricing should big a susceptible ago. now it was Those Bryan, accept few years think brands consumer are are

Bryan Spillane

Thanks, Thanks, Thanks. right. Dirk. Luca. All

Luca Zaramella

Bryan. you, Thank


Chris next of Stifel. take from Growe We'll question our

Chris Growe

afternoon. Thank you. Good Hi.

Luca Zaramella

Hi, Chris.

Dirk Van De Put

Chris. Hi,

Chris Growe

had Hi. question. a I just

we next to because be favorable about expect such consumer your you're as more think you a First, for with what planning as place, that the -- just with in you do you I'm model especially today? strong outlook, that elasticities do as -- some that, the remain represents or seeing that assumption going upside year it's to average, like about if better think you historical their the U.S., have into and you how curious elasticities that very then, pricing than

Dirk Van De Put

modeling we historical is the the At Yes. elasticity. what moment, are

better. also and an into we would be that to seeing know that current take so -- elasticity that we're us. the is for We have potentially account upside

comfort, Growth demand rise. straightforward to is on more using work it of the consumer like not they're the RGM, our always which ongoing time what look that that's gives strong confidence call think and mixture we mobility have I categories. techniques consumer, We Revenue spending at They thing Management, All a they it's a for I also different can here, desire call if is are is want I that, that for snack an a stabilizing, If increase. so at price at main very and home. is the

world more that are growing X% categories for. like X% the plan around usually a we versus Our

so is remain we think to elasticity that a moment. at hope, consumers the And quite or have we I -- think while. that to will leading And no that almost the

next And believe our want so in at don't planning there but do think we better for what might year, for that than moment. the elasticity we do I to be planning that we

Chris Growe

one have about in strike. maybe you I the this I to if question understand more you me gave quarter, you had missed contend but some revenue just fourth if hit shipped North if you it, around forgive know detail would I the below this any Okay.And around and little relation in then other talked costs a on and I America, consumption quarter. that to

from effect Thank that the I the to quarter had. strike this business saw all that's understand QX overall, Just in on we the and you.

Luca Zaramella

-- Maybe Yes.

Dirk Van De Put


Luca Zaramella

May --

Dirk Van De Put

Go ahead.


Luca Zaramella

I'll Maybe take that.

given as consumption, is So that stock, actively QX, no in impact strike standpoint, said on a enter impact with was new. There the quarter high fairly the stop. elevated virtually depleted as have the we trade the we from top-line we

in under-absorption with QX. a of impact, for at strain -- the far And as some but the on are in for negative, so we in are that's and I of a all a not together little Clearly, and will they in but standpoint, value chain bit goes, one From pressure but at obviously QX, meaningful profile an takes mitigated revenue QX. is quantify the have puts we cost there slightly impact cost other the related issues supply point the P&L pressure P&L as put some QX, no kicking will material we some it a overall point. of on cost - demand this chain, little would have supply say, bit top

Chris Growe

Great. Okay. Thank you.


Alexia our next Howard of from take Bernstein. question We'll

Alexia Howard

everyone. evening, Good

Luca Zaramella

Hi Alexia.

Dirk Van De Put

Hi Alexia.

Alexia Howard

Hi there.

questions. So have X I

pricing -- the and number North and got wondering then things just changing in where in takes world it The remember more to have is how able therefore, a regions the better I that than take or you've makes make think other here yet something though procedural you. might to see around after And get few in I'm commitments. achieve that. out was in visibility you other something what earlier it lengthier, it that Did of or first net that zero lesser question companies if sounded about pricing are in months commitment there's structural to goal a It and than made. been early on observations one the you're as getting is I or some and really you you've the into that January if make you.Thank pricing to that commitment a my of ago, changed? North that Did America you I take that. have follow-up just on is harder, America longer pricing.

Luca Zaramella


Dirk Van De Put

out pricing at You taking Luca? think X

Luca Zaramella

Dirk. here, partner let's Yes,

had to some preference of We -- simple and activities. promotional activities. had promotional price lot well to Also certain go we increase particularly discussed. activities Company at really promotional us a we windows even internal January Xst. the XXX% which for being luck as the to a our windows I being obviously customers that on So certain and dynamics further is our answer giving our we than disrupting QX before bound was promo that with And promo thought full rather supply chain, and

the and a of had to was location. considering that at might -- all-in-all as still go holiday in But Christmas here. these there the season us and with next what be better Obviously, So extent costs I season effects couple internal know all for of the effect year. will don't extremely it we nimble we quarters in the We QX spike during think, external, be pricing of will U.S. logistics to

this So point, that at what has pricing been if cost waves, additional simultaneous see point, we out than rule and continuous will more this cannot time. we we to be last see at it it pressure,

Dirk Van De Put

sure that as that worked Okay. On could. potentially this have thinking detail --the as we the zero, to much was make we wanted we

represent has were few past a team bit we homework. until little in so their years declare anything And to the done the

we've told understand in the exercises of gone quite that being how they've trying there. hard, I'm you so And working quite been deep. really deepest to do one probably it's get

make were know step-by-step, doable. we a Can wondering. it's so began we believe really Hey, it the wanted And that realistically in there? details means. plan to we will get And we then different but that

all And our very bit, Celsius. grasses acceleration announcement Applies greenhouse X.X for we to an initiative. existing and the and SVTI the it business the to It's joining our obviously and us. of this, ambition a So it's full really summarize if UN degree scope X X. with race significant supply little chain, extension an a I and for X, are so X,

ingredients. footprint, from XX% our coming of at look is footprint you our If

about And cocoa so means That's own and our ingredients, the investment is X our factors. on we it's of that the need work in big and areas And those it's that in continue ingredients, logistics. to our if it, think one increase to big operations life. you

networks. own We the we efficiency change and need all needed We warehouse our our And also vehicles, the We but our distribution, we've understand of virgin over on have our operations, ovens. and XX% significantly, so recyclable, clear but done change whole electricity. to need on make all our to use waste on. change hydrogen do on We and plastic of in which emissions, to our operations, is the on sure into need working recyclability our electric quite so agriculture. the to instance. a program related that. trucks, work switch extend packaging regenerative We more. in then XX% wheat We logistics, we need in need for get approach to boilers, years. food to renewable to to We to to and that our reduce need need

of Just to this things what a few means. name

have plan is we're It's which, that team We've of that. XX-year around XXXX, clear. for XXXX, planning and net-zero Investor And thing been costs also Company, we had make of all that they've sure the and another through details not a credible. Vision the up that the a plan, the with all into So during has these worked which easy. come to we made that is Day wanted built cost plan

add we is felt past a I we this think that we and really be little believe we deliver. exercise feels in come in. the this because you if why hesitant the the were announcements through month didn't But know all easy, we've going that's something I but right with and can make really Company now. this that up plan is why up working we that's were bit So can that not to It's the strong

Alexia Howard

it pass Thank all you very color.I'll much for the on.

Dirk Van De Put


Luca Zaramella

Thank you.


of Jason Sachs. next We'll question from take our Goldman English

Jason English

Hey, good Thanks on folks. a in afternoon, me to good result. and spot congrats

Luca Zaramella

you, Jason. Thank

Dirk Van De Put

Jason. right, All

Jason English

A for me. couple questions of

our that in models. expect to effects? the what flowing? that it on portfolio, increase X should X% we paper we to to Is see be U.S. on we actually should considering Anything pen dampening partial weighted price is as the put First, Or look average? to

Luca Zaramella

It increase the in U.S. is an net portfolio. overall average price

on well. announced all to little with candy gum that's a and the will it Hall's the and all cycle. are average going bit close to we the we very have going in as Biscuit, in But X%. that be So X%, for number, be is later

Jason English

it. Got

million quickly, they're -- America, are think being charges out I roughly backed And sticking simplify year-to-date. there North Okay. in substantial, growth the $XXX then pretty that

that Could return we're expense chunky all expected on what investment? all what this this the elaborate really you is on backing? is So numbers. And

Luca Zaramella

reset having some in of of the been that's cost earlier the all closure the the U.S. And the year the of part have plants. the announced with restructuring. really we biggest the around We network, in activities of

really that's, it So at this what that's point. is

Jason English

from expect return savings that? that And generated to or you the anticipated be

Luca Zaramella

cost an have well excess return that of of we Obviously, is in internal of expectation rate capita.

to into relates cost as imagine particularly it plans, go fixed we're as X that might avoid year. next the You we going to

yield the on we strike of so But On benefits the the to It a going good side. fixed I going our this win-win believe. cost, together for with gave us additional resolution that, did And additional the us to is whom is good flexibility, avoidance and returns. top the to return flexibility. program of was gets employees high be itself

Jason English

Excellent. Pass on. you. it Thank Great stuff.


We'll Palmer take our next question from David Evercore of ISI.

David Palmer

declined. margin could afternoon. Good gross you. if about talk the Thank you Third Wondering Quarter

Your X%. was of other pricing How in you much quick was the inefficiencies think the input follow-up. have the I factors supply a like U.S. impact chain versus and inflation UK? And

Luca Zaramella


the and regions, is, Latin have and constraints EMEA The we it I when logistics release frankly, the pressure end business, look GP at transportation the cost As America seen. I America business, said,in European the across and that from can good for feel growth to North business. I the our quite across really what the board mostly accomplished attributable quite about was

also to though, some oils, that etc. particularly has commodities like some acknowledge There We had been pressure. edible around

attributable is comes mostly line to the logistics commodity of that say business. would GP QX North the America it I So because pressure the and mostly cost. And in

But goal have it QX, QX, And in going in QX margins and so fiscally, we cost think forward, really a QX little should and pricing a high bit as the the my not into XXXX. and s you amount in into year. in severity improve QX believe proportionately is because quite same in I seen next further can

So that's around color GP a of the line. little bit

David Palmer

to doesn't are up get 'XX. wouldn't the add 'XX perhaps like back And might of 'XX, in into for in just curious you mentioned XXXX 'XX. about that right? into those Jason's increases global price first upwards number to heading that -- alone retail, sounds can't common in quick levels, of of then the I'm some U.S., it your of for increases but point back you to the price the half you announced question a remarks a end Is those your entirety price just prepared travel even get mean that that And follow of world

far those 'XX? versus below how were Thanks. businesses So in 'XX

Luca Zaramella

with go gum the questions. and part and Yeah. I'll first Maybe answer the candy

big you I a total America for do. North X% Company have the would how you and is think increase in what know price of a X%, sense

Obviously we are year, think that been to is question do in moving that's protracted need we're So is I And this increases away to price at will the little how historically, the mark moment the what to than point. question price your seeing is, consumers. what see our anchors more they And is but next ballpark. a bit and from volume at benign need have the see react? some going math we to it elasticities into

and at I As I of being though, Company see the well. as time, I the next this momentum for year revenue revenue on good for said going algorithm totality into 'XX, see

Dirk Van De Put

on gum candy first on So gum. on and maybe be can

I I last was coming world roughly, think it of because what travel XXXX in it gum to would of in on gum retail. XX% drops say But to XX% about mobility. year, is

then gap XXXX. the I of to XX% in XXXX. XX, we roughly maybe think going will for be it's close And around total where that 'XX, was expect it in that of it

recuperation the Now, an of slower. of gum. recuperation have of the in was the Recently, the year, acceleration beginning we seen

in So we're talking year-to-date, growth double-digit revenue gum, and growth strong about of QX. double-digit revenue

for us revenue. and to now only markets see but XXXX X-year starting then the is said, high-single-digit, and our question The have is the X% CAGR emerging really net X-year a which remain we on developed markets, I of a markets, the positive is faster. going gum. on some where on attractive still So we were And as particularly China year-to-date negative Russia, CAGR, recovery

be so And expected that's to -- where really recovery we that's slowest.

to probably retail, it As it before back pandemic. what would to it bit get dropped the year, to say, happens the what we we and X, This little of then was unknown. to consumers world XX% will travel depending as was It of probably depending I decide what do traveled, but a on that at X% almost at year big relates the XX% maybe relates travel, end the to that's

quite we a we the see travel will not as same sure buying consequence, up XXXX. sure I'm as year, that amount will We travel. saw next on of in but significantly And go for

So back gum but XXXX, be a a lot and bit I we in that's in all But still little think travel so think. up will the retail close, growing get the air. wasn't completely not close gum to the growth back. way will But we no world significant remember, but

David Palmer

Thank you.


Morgan final our Pamela take Kaufman we'll question Stanley. And of from

Pamela Kaufman

Hi, good evening.

Luca Zaramella


Dirk Van De Put

Pamela. Hi,

Pamela Kaufman

of How that about top-line if strong which seen? you so, you And there greater thinking can and about to support are be investment categories support talk level behind? further might momentum geographies investment the you've the needed do investment to expect pricing? brand higher you to And increase

Dirk Van De Put

profit A&C talk of it's part XX our about X% or our to can X%+ year-after-year, algorithm. to fits i and general, go X/X gross detail all X% with bit that investment. want that that into X% reinvested. goes of I if that maybe believe little that's more X/X categories, can into categories, goes the that increase Yes. we our more believe Not our that the roughly, if, the in and of allows and in R&D. long-term for that into gets into grow increase, achieved needed. out where you goes outgrow long-term But principles we our growth that to have more support, a A&C, look is algorithm, growth And thinking, through more then brands roughly that's year-over-year be others. of overheads, so would visibility, some need want into we than a We that the can I of our expectation X% to say innovation But overall

media. we doing our flowing moving the XX% As A&C see working we a increases of do year, A&C investment that investments, are to algorithm. have doing investments, continuously it more that in pricing the increasing flowing our about. This in movement the a our example, relates the talked -- Luca we double-digit can more are top-line, we to is we're while get increase Then, an other better year-to-date, we within into price we might at as back If maintain trying and we investment.

years. We have for multiple done now that

is in quality, the and investments the within working increase So really the the marketing. made ROI increase and are our There And in then then big overall A&C the of also strides A&C. the media on have we effectiveness, compounding.

years. probably more some And in -- our more, add talk emerging which markets you want we that's the we do markets thinking want we about brands how build and increases our where you do we're was do the support activate term. Jewels, But not brands. we largely Local where it we already to have the where have supporting still more because given we that you if that, underrepresented, have we markets, about the of something? really to investment longer sure, category last If do to we are more the should That's A&C I'm three the to on want category where the it. relates of think for biggest and then I Luca, to to the to would significantly as continue that do

Luca Zaramella

A&C despite been If since theme, even in line. to have think of COVID, media, fine what obviously line. I quite quite been the the have that between situation quality would Particularly implementing think advertising mix working and the been XXXX, it been XXXX A&C, have XXXX got has the XXXX, look you look a we tuning say where again, improving XX% we it the improving that I on able today. ROI No, also spend we I been the bit. the versus we of of about consistent advertising in by Company think investment. And I we A&C has are back, increase a one P&L a I in bit given f and the in terms

mobile And have been a brands. I more so with at you share global sustainable things for And there making the think us. the look local linkage that's growth, think strong has I gains, that of investments in these when volume we is and one made

Pamela Kaufman

recent leveraging Can you. opportunities you're to targeting to update give space the acquisitions how that opportunities. you and on you're an just Thank these the white address

Dirk Van De Put

space at first sure on X Sorry. mean, are look growth, opportunities categories -- growing. It building our pretty for I us Yes, blocks our keep the you wide straightforward. are the for make if

We are pulsely depends category, category our players big in us. growth our of

share and a that market increase us to growth. bigger continue our Second, gives

is we Third, channel there that can the expansion do.

for in all not or share emerging We having in market talking instance, same online channels. about But numerical distribution about, digital more are the also markets. Thinking commerce developed in the we're markets.

China stores XXX,XXX XX,XXX prepared by stores are the presence increasing we by this was I and quarter saying India in remarks, alone. our As

So our segments premium, then and we are of well-being, growth new on some should be that and about those so top of that, the underrepresented there's are high and we thinking in that really about products categories, I'm within thinking areas launching wide some using [Indiscernible] in or instance, of getting would that around spaces category. out not are grenade for have the been present. to seeing this countries and the Then where world, fit that there there, acquisitions we geographic yet we've we

Europe we reinforce but and they're although which yet, like some other markets. acquisition And many East in and we'll emerging so of same we presence, the plays in haven't Obviously, our the that the certainly mass. an largely smaller done And Central will largely critical and are we Chipita, the one it bar adjacencies, as is already but where the bakery the countries last are more give then have a presence us which closing segment. or

that Chipita fits into we of or fall opportunity Go so And growth sort Give that & fully have.

that's And the space. last wide so

the closing high-growth have. wide we that X So geographical and big adjacencies. spaces, channel, between spaces Those wide are it's segments,

Pamela Kaufman

Thank you.


our And this -- does conclude

Dirk Van De Put

I think Yeah? end. come to we've the


concluding Sorry. Q&A like the I'd does for session. Go any remarks. call you return to This ahead. conclude our to

Dirk Van De Put


help we year will talk the and more at give the where the you XX. to to think we've to guidance and of you contact your Company. Happy Andrei reply looking out. clearly you Shep for we've to you And a the whatever for forward questions. to in the come and end. can interest update Thank we Please do to XX I of full our you end ended give through


Thank you.

Luca Zaramella

Thank you.


today's conclude call. QX, does This XXXX earnings Mondelez Corporation

disconnect. good a now have day. Everyone, may You