Berenberg Bank analysts provided a review on Mondelez International, Inc. (NASDAQ:MDLZ), expecting the company to deliver above 4% organic growth in the mid-term, higher than the 3% official guidance, since its separation from Kraft Foods, given a combination of improved category growth, exceptional market share momentum and portfolio management in recent years.

In addition, high-single-digit EPS growth is also supported by a return to operating-leverage-driven margin expansion (once inflationary pressures ease), share buybacks and bolt-on M&A.

The analysts anticipate that cost efficiency (including some temporary moderation in advertising and commercial investments) and mix can offset some of the gross margin declines, expecting adjusted operating margins down by 30bp year-over-year to 16.3% in 2022 (vs. Street’s 16.9%), and up by 50bp to 16.8% in 2023 (vs. Street’s 17.3%).