MDLZ · Mondelez International, Inc.

Mondelez delivered strong top-line growth in Q1 2026, with reported net revenues rising 8.2% to $10.08 billion, fueled by favorable currency translation and underlying organic growth of 3.0%. Organic growth was driven by pricing gains (+3.5 pp contribution globally), partially offset by a -0.5 pp drag from volume/mix — reflecting mixed demand trends, especially in Developed Markets where organic growth was only +0.8% versus +6.3% in Emerging Markets. Gross profit margin expanded 170 bps to 27.8%, but this was largely attributable to favorable mark-to-market impacts from commodity and FX derivatives; Adjusted Gross Profit margin actually declined 270 bps to 30.7% due to persistent input cost inflation and volume/mix headwinds. Operating income margin rose 70 bps to 8.0%, again aided by derivative gains, while Adjusted Operating Income margin fell 310 bps to 11.7%, underscoring operational pressure from higher advertising, SG&A, and ERP implementation costs. Diluted EPS surged 41.9% to $0.44, but Adjusted EPS declined 14.9% on a constant currency basis — revealing the extent to which non-operational items masked underlying earnings softness. Management reaffirmed full-year guidance: organic revenue growth of flat to +2% and Adjusted EPS growth of flat to +5% (constant currency), alongside $3 billion in Free Cash Flow. The commentary emphasized continued investment behind brands and growth platforms despite macro volatility, signaling confidence in long-term execution even as near-term margins face headwinds from inflation and restructuring.