MDLZ — Mondelez International, Inc.

MDLZ Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Mondelez International reported a solid performance in Q4 2025, with organic sales growth driven primarily by emerging markets.
• The company noted a decline in the biscuit category in North America, with volumes down 4% in the last three months and 3% for the year.
• Cocoa prices have recently fallen, which may impact profitability and competitive dynamics in 2026.

2. Strategic Updates and Business Highlights:

• Mondelez executed its chocolate strategy effectively, focusing on pricing management and revenue growth through price pack architecture.
• Significant investments are planned for brand marketing, particularly in chocolate, with a successful collaboration with Biscoff expected to expand in 2026.
• The company is modernizing its operations in North America to improve efficiency and flexibility in the supply chain.

3. Forward Guidance and Outlook:

• For 2026, Mondelez anticipates organic sales growth of 0-2%, with emerging markets expected to maintain high single-digit growth.
• The guidance reflects caution due to potential disruptions in the chocolate category and ongoing challenges in the biscuit segment.
• The company aims for improved volume trajectories throughout 2026, with a focus on stabilizing pricing and enhancing brand awareness.

4. Bad News, Challenges, or Points of Concern:

• Consumer confidence in North America is at historic lows, affecting spending on snacks and leading to a shift towards value-seeking behavior.
• The biscuit category remains weak, and while volume declines are expected to ease, significant growth is not anticipated in North America.
• The recent drop in cocoa prices may lead to competitive pressures, as many players in the industry have already locked in higher prices for 2026.

5. Notable Q&A Insights:

• CEO Dirk Van de Put emphasized the importance of adjusting pricing strategies in response to market elasticity, particularly in northern European markets.
• CFO Luca Zaramella highlighted the need for flexibility in guidance due to unpredictable cocoa price dynamics and potential competitive reactions.
• The company is cautiously optimistic about returning to pre-2025 profitability levels in the chocolate segment by 2027, contingent on effective pricing and investment strategies.
• Concerns about the impact of GLP-1 medications on snack consumption were addressed, with management indicating minimal expected effects on overall business volumes.

Overall, Mondelez is navigating a challenging market environment while strategically investing in brand growth and operational efficiency, with a cautious but optimistic outlook for 2026 and beyond.