Mondelez Slips 4% as Earnings Miss and 2025 Outlook Raises Cost Concerns

Mondelez International (NASDAQ:MDLZ) saw its stock decline over 4% in pre-market today after reporting weaker-than-expected fourth-quarter earnings and issuing a cautious outlook for 2025.

The snack giant posted adjusted earnings per share of $0.65, falling short of analysts’ $0.68 forecast. Revenue also disappointed, coming in at $9.6 billion versus the expected $9.72 billion.

Despite the Q4 miss, Mondelez delivered solid full-year results for 2024, with organic net revenue rising 4.3% to $36.4 billion. Adjusted earnings per share climbed 13% on a constant currency basis, reaching $3.36.

However, the outlook for 2025 raised concerns. While the company expects organic revenue growth of approximately 5%, adjusted EPS is projected to decline by about 10% on a constant currency basis, with soaring cocoa costs posing a major challenge. Mondelez also anticipates generating over $3 billion in free cash flow next year.

The company remains confident in its long-term growth strategy, emphasizing its ability to navigate inflationary pressures in its chocolate business. However, with cocoa prices at record highs, investors appear cautious about the impact on profitability moving forward.