What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-07-27 compared with 2023-04-27 · 448 added, 305 removed, 392 unchanged (66% of the section changed)

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Macroeconomic environment

We continue to observe significant market uncertainty, increasing inflationary pressures, supply constraints, exchange rate volatility as well as ongoing effects from the COVID-19 pandemic.

Throughout the pandemic, we experienced an overall increase in demand and revenue growth as consumers increased their food purchases for in-home consumption in some markets, while parts of our business were negatively affected by related lockdowns and restrictions.

Additionally, global supply chain, transportation and labor issues escalated and we experienced significantly higher operating costs, including higher overall raw material, transportation, labor and energy costs that have continued to rise.

We continue to observe significant market and geopolitical uncertainty, increasing inflationary pressures, supply constraints and exchange rate volatility.

As a result, we experienced significantly higher operating costs, including higher overall raw material, transportation, labor and energy costs that have continued to rise.

Our overall outlook for future snacks revenue growth remains strong;

however, we anticipate ongoing volatility in response to supply chain issues, including labor and transportation constraints, and COVID-related risks.

however, we anticipate ongoing volatility in response to supply chain issues, including labor and transportation constraints.

We will continue to proactively manage our business in response to the evolving global economic environment and related uncertainty and business risks while also prioritizing and supporting our employees and customers.

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War in Ukraine

In February 2022, Russia began a military invasion of Ukraine.

For the safety of our employees, we stopped production and closed our facilities in Ukraine;

since then we have been gradually restoring operations, continuing to take steps to protect the safety of our employees and partially re-opening our two plants.

We are providing all of our employees with compensation and with help in securing shelter in neighboring countries, where required and needed.

We have also made cash and in-kind donations to several humanitarian aid organizations in the region.

In March 2022, our two Ukrainian manufacturing facilities in Trostyanets and Vyshhorod were significantly damaged.

During the remainder of 2022, the war continued through parts of Ukraine.

We continue to make targeted repairs on both our plants.

We relaunched our systems and implemented additional safety and security measures.

In late June, we partially reopened the Vyshhorod plant and restarted limited potato chip production and in late November, we reopened the Trostyanets plant and restarted limited chocolate production.

We also continue to support our Ukraine employees, including paying salaries to those not yet able to return to work until full production returns.

In February 2022, following the Russian military invasion of Ukraine, we stopped production and closed our facilities in Ukraine;

since then we have taken steps to protect the safety of our employees and to restore operations on a limited basis at our two manufacturing facilities, which were significantly damaged in March 2022.

We continue to support our Ukraine employees, including paying salaries to those not yet able to return to work until full production returns.

See Note 1, Basis of Presentation - War in Ukraine , to the condensed consolidated financial statements, and refer to Items Affecting Comparability of Financial Results for additional information.

As a food company, we continue to work to support the continuity of food supply and provide packaged foods to consumers.

We have suspended new capital investments and our advertising spending in Russia, but as a food company with more than 2,500 employees in the country, we have not ceased operations given we believe we play a role in the continuity of the food supply.

We are complying and will comply with applicable international sanctions and other measures that have been or may be imposed on Russian entities.

We continue to evaluate the situation in Ukraine and Russia and our ability to control our operating activities and businesses on an ongoing basis, and we continue to consolidate both our Ukrainian and Russian subsidiaries.

During the first quarter of 2022, Ukraine generated 0.3% and Russia generated 2.4% of consolidated net revenue and during the first quarter of 2023, Ukraine generated 0.4% and Russia generated 2.8% of consolidated net revenue.

Our Russian business has grown

as a result of the stronger Russian ruble versus the U.S.

dollar at the start of 2023 and increased price.

The combination of pricing, suspension of advertising and ruble strength has resulted in a significant increase in the profitability of the Russian business and contributed to the growth of our consolidated performance.

Our decision to suspend new capital investments in Russia has not had a material impact on our ability to meet demand within our Russian business during 2023.

We believe the war in Ukraine has had a negative impact on our business throughout the rest of our Europe operating segment, but the impact of this is difficult to quantify.

We continue to evaluate the situation in Ukraine and Russia and our ability to control our operating activities and businesses on an ongoing basis and comply with applicable international sanctions, and we continue to consolidate both our Ukrainian and Russian subsidiaries.

During the second quarter of 2022, Ukraine generated 0.2% and Russia generated 3.7% of consolidated net revenue and during the second quarter of 2023, Ukraine generated 0.3% and Russia generated 2.8% of consolidated net revenue.

Our Russian net revenues declined in the second quarter of 2023 due to the suspension of advertising as well as currency weakness that more than offset increased pricing.

Despite the decrease in revenues, the profitability of our Russian business has increased significantly and contributed to the growth of our consolidated performance.

We continue to reduce our activities in Russia and expect further volume declines as we work to have the business operate on a stand-alone basis, with a self-sufficient supply chain before the end of the year.

We cannot predict if the recent strength in our Russian business will continue in the future.

Our operations in Russia are subject to risks, including the temporary or permanent loss of assets or our ability to conduct business operations in Russia and the partial or full impairment of our Russian assets in future periods, or the termination of our business operations, based on actions taken by Russia, other parties or us.

For more information, see the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2022, including the risk entitled “ The war in Ukraine has impacted and could continue to impact our business operations, financial performance and results of operations.

Acquisitions and Divestitures

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Keurig Dr Pepper Transactions

In 2023, we sold approximately 30 million shares, which reduced our ownership interest by 2.1% to 3.2% of the total outstanding shares.

We recorded a pre-tax gain of $493 million (or $366 million after tax).

This reduction in ownership, to below 5%, resulted in a change of accounting for our investment, from equity method investment accounting to accounting for equity interests with readily determinable fair values ("marketable securities") as we no longer have significant influence.

Due to the change of accounting, we reported unrealized gains for marketable securities of $787 million (or $586 million after tax).

On March 2, 2023, we sold approximately 30 million shares of KDP, which reduced our ownership interest by 2.1% to 3.2%.

We recorded a pre-tax gain on equity method transactions of $493 million (or $366 million after tax) during the first quarter of 2023.

Our reduction in ownership to below 5% eliminated our governance rights that had allowed us to exert substantial influence over KDP and resulted in a change of accounting from equity method investment accounting to accounting for equity interests with readily determinable fair values ("marketable securities") during the first quarter of 2023.

On June 8, 2023, we sold approximately 23 million shares of KDP, which reduced our ownership to 1.6% of the total outstanding shares.

We received proceeds of approximately $708 million.

On July 13, 2023, we sold our remaining 23 million shares and received approximately $704 million in proceeds.

JDE Peet’s Transactions

On April 3, 2023, we sold approximately 7.7 million shares of JDEP, which reduced our ownership interest by 1.6%, to 18.1%.

We received cash proceeds of €198 million ($217 million) and recorded a loss of €18 million ($19 million) on this sale during the three months ended June 30, 2023.

On March 30, 2023, we issued options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares.

These options are exercisable at maturity during the third quarter of 2023 with a potential impact to our ownership if the options are exercised.

On April 3, 2023, we sold approximately 7.7 million shares of JDEP, which reduced our ownership interest by 1.6% to 18.1%.

For additional information, refer to Note 6, Investments and Note 9, Financial Instruments.

Highly Inflationary Accounting

During the first quarter of 2022, we concluded that Türkiye became a highly inflationary economy for accounting purposes.

As of April 1, 2022, we began to apply highly inflationary accounting for our subsidiaries operating in Türkiye.

See Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting for additional details.

advertising and promotion ban

In the United Kingdom, a ban on specific types of TV and online advertising of food containing levels of fat, sugar or salt above specified thresholds is expected to go into effect in October 2025, and new measures restricting certain promotions are expected to go into effect in October 2023.

In the United Kingdom, a ban on specific types of TV and online advertising of food containing levels of fat, sugar or salt above specified thresholds as well as measures restricting multi buy promotions are expected to go into effect in October 2025.

Restrictions on in-store placement of some of those products went into effect in October 2022.

Although we are unable to estimate precisely the impact of the restrictions, they did not have a significant impact on our consolidated financial statements in the first quarter of 2023.

Although we are unable to estimate precisely the impact of the restrictions, they did not have a significant impact on our consolidated financial statements in the three and six months ended June 30, 2023.

We continue to monitor existing and potential future tax reform around the world.

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enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy.

Based on the guidance available thus far, we expect to meet the criteria of a large corporation but we do not believe this legislation will have a material impact on our consolidated financial statements.

Based on the guidance available thus far, while we meet the criteria of a large corporation we do not believe this legislation will have a material impact on our consolidated financial statements.

We will continue to evaluate it as additional guidance and clarification becomes available.

We also continue to monitor countries’ progress toward enactment of the Organization of Economic Cooperation and Development’s model rules on a global minimum tax.

While numerous countries have proposed new legislation in this area (and two countries have enacted it), any new law is only expected to be effective for taxable years beginning after December 31, 2023.

While numerous countries have proposed new legislation in this area (and two countries have enacted it as of June 30, 2023), any new law is only expected to be effective for taxable years beginning after December 31, 2023.

If broadly enacted, these laws could have a material effect on us.

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Summary of Results

• Net revenues increased 18.1% to $9.2 billion in the first quarter of 2023 as compared to the same period in the prior year.

In the first quarter of 2023, our net revenue growth continued to reflect increased demand for most of our snack category products in both our emerging and developed markets relative to 2022.

Overall, our net revenue growth in the first quarter of 2023 was driven by higher net pricing, incremental net revenues from our acquisitions of Clif Bar and Ricolino in 2022 and favorable volume/mix, partially offset by unfavorable currency translation and the impact of divestitures in 2022.

• Organic Net Revenue, a non-GAAP financial measure, increased 19.4% to $9.3 billion in the first quarter of 2023 as compared to same period in the prior year.

During the first quarter of 2023, Organic Net Revenue grew due to higher net pricing and favorable volume/mix.

• Net revenues increased 17.0% to $8.5 billion in the second quarter of 2023 and increased 17.5% to $17.7 billion in the first six months of 2023 as compared to the same periods in the prior year.

In the second quarter and first six months of 2023, our net revenue growth continued to reflect strong demand for most of our snack category products in both our emerging and developed markets relative to 2022.

Overall, our net revenue growth in both the second quarter and first six months of 2023 was driven by higher net pricing, incremental net revenues from our acquisitions of Clif Bar and Ricolino in 2022 and favorable volume/mix (reflecting growth in the first quarter while the second quarter was flat), partially offset by unfavorable currency translation and the impact of divestitures in 2022.

• Organic Net Revenue, a non-GAAP financial measure, increased 15.8% to $8.4 billion in the second quarter of 2023 and increased 17.7% to $17.7 billion in the first six months of 2023 as compared to same periods in the prior year.

During the second quarter, Organic Net Revenue grew due to higher net pricing while volume/mix was flat.

During the first six months of 2023, Organic Net Revenue grew due to both higher net pricing and favorable volume/mix.

Organic Net Revenue is on a constant currency basis and excludes revenue from acquisitions and divestitures.

We use Organic Net Revenue as it provides improved year-over-year comparability of our underlying operating results (see the definition of Organic Net Revenue and our reconciliation with net revenues within Non-GAAP Financial Measures) .

• Diluted EPS attributable to Mondelēz International increased 149.2% to $1.52 in the first quarter of 2023 as compared to the same period in the prior year.

Diluted EPS increased in the first quarter of 2023, driven by a mark-to-market gain on marketable securities, gain on equity method investment transactions, lower incremental costs due to the war in Ukraine, an increase in Adjusted EPS, lapping prior-year loss on debt extinguishment, lapping prior-year intangible asset impairment charges, lower acquisition-related costs and favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives.

These favorable items were partially offset by higher acquisition integration costs and contingent consideration adjustments, higher equity investee items, higher divestiture-related costs, lower net earnings from divestitures and higher remeasurement loss of net monetary position.

• Adjusted EPS, a non-GAAP financial measure, increased 9.9% to $0.89 in the first quarter of 2023 as compared to the same period in the prior year.

On a constant currency basis, Adjusted EPS increased 17.3% to $0.95 in the first quarter of 2023 as compared to the same periods in the prior year.

Adjusted EPS increased in the first quarter of 2023, primarily driven by operating gains, fewer shares outstanding, lower taxes and dividend income from marketable securities, partially offset by unfavorable currency translation, higher interest expense, lower equity method investment earnings and lower benefit plan non-service income.

Adjusted EPS and Adjusted EPS on a constant currency basis are non-GAAP financial measures.

We use these measures as they provide improved year-over-year comparability of our underlying results (see the definition of Adjusted EPS and our reconciliation with diluted EPS within Non-GAAP Financial Measures ).

Refer to Non-GAAP Financial Measures for the definition of Organic Net Revenue and Consolidated Results of Operations for our reconciliation with net revenues.

• Diluted EPS attributable to Mondelēz International increased 27.8% to $0.69 in the second quarter of 2023 and increased 91.3% to $2.20 in the first six months of 2023 as compared to the same period in the prior year.

– Diluted EPS increased in the second quarter of 2023, driven by favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, increase in Adjusted EPS, lower acquisition integration costs and contingent consideration adjustments and lapping prior-year initial impacts from enacted tax law changes.

These favorable items were partially offset by a mark-to-market loss on marketable securities, lapping prior-year net earnings from divestitures, higher divestiture-related costs, higher remeasurement loss of net monetary position, higher loss on equity method investment transactions and lapping prior-year decrease in estimated allowances and reserves associated with incremental costs incurred due to the war in Ukraine.

– Diluted EPS increased during the first six months of 2023, driven by a mark-to-market gain on marketable securities, net gain on equity method investment transactions, favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, an increase in Adjusted EPS, lapping prior-year incremental costs due to the war in Ukraine, lapping prior-year loss on debt extinguishment, lapping prior-year intangible asset impairment charges, lapping prior-year acquisition-related costs and lapping prior-year initial impacts from enacted tax law changes.

These favorable items were partially offset by lower net earnings from divestitures, higher equity investee items, higher divestiture-related costs, higher acquisition integration costs and contingent consideration adjustments and higher remeasurement loss of net monetary position.

• Adjusted EPS, a non-GAAP financial measure, increased 16.9% to $0.76 in the second quarter of 2023 and increased 13.0% to $1.65 in the first six months of 2023 as compared to the same periods in the prior year.

On a constant currency basis, Adjusted EPS increased 21.5% to $0.79 in the second quarter of 2023 and increased 19.9% to $1.75 in the first six months of 2023 as compared to the same periods in the prior year.

Refer to Non-GAAP Financial Measures for the definition of Adjusted EPS and Consolidated Results of Operations for our reconciliation with diluted EPS.

– Adjusted EPS increased in the second quarter of 2023, primarily driven by operating gains, impact from acquisitions, fewer shares outstanding and higher equity method investment earnings, partially offset by unfavorable currency translation, higher taxes, higher interest expense and lower benefit plan non-service income.

– Adjusted EPS increased in the first six months of 2023, primarily driven by operating gains, impact from acquisitions, fewer shares outstanding and dividend income from marketable securities, partially offset by unfavorable currency translation, higher interest expense, higher taxes and lower benefit plan non-service income.

Discussion and Analysis of Historical Results

4 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

See Note 2023 2022 2023 2022

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Intangible asset impairment charges Note 5 — — — (78)

Mark-to-market gains from derivatives (1)

Mark-to-market gains/(losses) from derivatives (1)

Note 9 168 (128) 216 (100)

Acquisition and divestiture-related costs:

1 unchanged sentence

contingent consideration adjustments (1)

(24) (37) (75) (72)

Acquisition-related costs — (5) — (26)

6 unchanged sentences

Loss on debt extinguishment and related expenses Note 8 (1) — (1) (129)

Gain on marketable securities Note 6 787 —

Gain/(loss) on equity method investment

Initial impacts from enacted tax law changes Note 14 (2) (9) (2) (9)

(Loss)/gain on marketable securities Note 6 (194) — 593 —

(Loss)/gain on equity method investment

transactions (3)

(23) (8) 462 (13)

Equity method investee items (4)

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(1) Includes impacts recorded in operating income and interest expense and other, net.

Mark-to-market gains/(losses) above also include our equity method investment-related derivative contract mark-to-market gains/(losses) (refer to Note 9, Financial Instruments) that are recorded in the gain on equity method investment transactions on our condensed consolidated statement of earnings.

Mark-to-market gains/(losses) above also include our equity method investment-related derivative contract mark-to-market gains/(losses) (refer to Note 9, Financial Instruments) that are recorded in the (loss)/gain on equity method investment transactions on our condensed consolidated statement of earnings.

(2) Incremental costs due to the war in Ukraine include direct charges such as asset impairments due to damaged facilities and inventory, higher expected allowances for uncollectible accounts receivable and committed compensation.

Please see the Non-GAAP Financial Measures section at the end of this item and Note 1, Basis of Presentation – War in Ukraine , for additional information.

(3) Gain/(loss) on equity method investment transactions is recorded outside pre-tax operating results on the condensed consolidated statement of earnings.

(3) (Loss)/gain on equity method investment transactions is recorded outside pre-tax operating results on the condensed consolidated statement of earnings.

See footnote (1) as mark-to-market gains/(losses) on our equity method-investment-related derivative contracts are presented in the table above within mark-to-market gains/(losses) from derivatives.

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Consolidated Results of Operations

Three Months Ended March 31

Three Months Ended June 30

For the Three Months Ended

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0.69 0.54 0.15 27.8 %

Net Revenues – Net revenues increased $1,402 million (18.1%) to $9,166 million in the first quarter of 2023, and Organic Net Revenue (1) increased $1,502 million (19.4%) to $9,257 million.

Developed markets net revenues increased 16.0% and developed markets Organic Net Revenue increased 15.8% (1) .

Net Revenues – Net revenues increased $1,233 million (17.0%) to $8,507 million in the second quarter of 2023, and Organic Net Revenue (1) increased $1,151 million (15.8%) to $8,413 million.

Emerging markets net revenues increased 17.8% and emerging markets Organic Net Revenue increased 23.3% (1) .

Developed markets net revenues increased 16.4% and developed markets Organic Net Revenue increased 11.2% (1) .

The underlying changes in net revenues and Organic Net Revenue are detailed below:

Change in net revenues (by percentage point)

Total change in net revenues 18.1 %

Remove the following items affecting comparability:

Unfavorable currency 6.0 pp

Impact of divestitures 0.1 pp

Impact of acquisitions (4.8) pp

Total change in Organic Net Revenue (1)

Higher net pricing 16.2 pp

Favorable volume/mix 3.2 pp

Markets Developed

Markets Mondelēz

International

Three Months Ended June 30, 2023

Reported (GAAP) $ 3,306 $ 5,201 $ 8,507

Acquisitions (137) (240) (377)

Currency 277 6 283

Organic (Non-GAAP) $ 3,446 $ 4,967 $ 8,413

Three Months Ended June 30, 2022

Reported (GAAP) $ 2,806 $ 4,468 $ 7,274

Divestitures (12) — (12)

Organic (Non-GAAP) $ 2,794 $ 4,468 $ 7,262

Reported (GAAP) 17.8 % 16.4 % 17.0 %

Divestitures 0.5 pp — pp 0.1 pp

Acquisitions (4.9) (5.3) (5.2) pp

Currency 9.9 0.1 3.9 pp

Organic (Non-GAAP) 23.3 % 11.2 % 15.8 %

Vol/Mix 2.1 pp (1.2)pp — pp

Pricing 21.2 12.4 15.8

(1) Please see the Non-GAAP Financial Measures section at the end of this item.

Net revenue increase of 17.0% was driven by our underlying Organic Net Revenue growth of 15.8% and the impact of acquisitions, partially offset by unfavorable currency translation and the impact of divestitures.

Overall, we continued to see increased demand for our snack category products.

Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.

Higher net pricing in all regions was due to the benefit of carryover pricing from 2022 as well as the effects of input cost-driven pricing actions taken during the first quarter of 2023.

Favorable volume/mix was reflected across all regions, primarily due to strong volume gains across our snack category products.

Overall, we continued to see strong demand for our snack category products across most regions.

Organic Net Revenue growth was driven by higher net pricing as overall volume/mix was flat for the quarter.

Higher net pricing in all regions was due to the benefit of carryover pricing from 2022 as well as the effects of input cost-driven pricing actions taken during the first six months of 2023.

Volume/mix was flat as favorable volume/mix in North America, AMEA and Latin America was offset by unfavorable volume/mix in Europe reflecting the impact from customer price negotiation disruptions.

The November 1, 2022 acquisition of Ricolino added incremental net revenues of $137 million (constant currency basis) and the August 1, 2022 acquisition of Clif Bar added incremental net revenues of $240 million.

Unfavorable currency impacts decreased net revenues by $283 million, primarily due to the strength of the U.S.

dollar relative to most currencies, including the Argentinean peso, British pound sterling, euro, Indian rupee, Egyptian pound, Turkish lira and Chinese yuan, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Russian ruble and Mexican peso.

The impact of divestitures resulted in a year-over-year reduction in net revenues of $9 million.

dollar relative to most currencies, including the Argentinean peso, Russian ruble, Chinese yuan, Indian rupee, Turkish Lira, Egyptian pound, South African rand and Australian dollar, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Mexican peso and euro.

The impact of our 2022 divestitures resulted in a year-over-year reduction in net revenues of $12 million.

Refer to Note 2, Acquisitions and Divestitures, for additional information.

Operating Income – Operating income increased $411 million (37.6%) to $1,505 million in the first quarter of 2023.

Operating Income – Operating income increased $498 million (53.7%) to $1,425 million in the second quarter of 2023.

Adjusted Operating Income (1) increased $235 million (21.4%) to $1,332 million and Adjusted Operating Income on a constant currency basis (1) increased $288 million (26.3%) to $1,385 million due to the following:

Income % Change

For the Three Months Ended

2023 2022 $ Change % Change

(in millions)

Operating Income for the Three Months Ended March 31, 2022

Operating Income $ 1,425 $ 927 $ 498 53.7 %

Simplify to Grow Program (2)

Intangible asset impairment charge (3)

Mark-to-market gains from derivatives (4)

Acquisition integration costs and contingent consideration adjustments (5)

Mark-to-market (gains)/losses from derivatives (3)

(171) 109 (280)

Acquisition integration costs and

contingent consideration adjustments (4)

Acquisition-related costs (4)

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Operating income from divestitures (4)

Remeasurement of net monetary position (6)

Incremental costs due to war in Ukraine (5)

Adjusted Operating Income (1) for the

Three Months Ended March 31, 2022

Remeasurement of net monetary position (5)

Adjusted Operating Income (1)

$ 1,332 $ 1,097 $ 235 21.4 %

Unfavorable currency translation 53 — 53

Adjusted Operating Income (constant currency) (1)

$ 1,385 $ 1,097 $ 288 26.3 %

Key Drivers of Adjusted Operating Income (constant currency) $ Change

Higher net pricing 1,149

2 unchanged sentences

Higher selling, general and administrative expenses (145)

Impact from acquisition (5)

Impact from acquisitions (4)

Lower amortization of intangible assets 1

Higher asset impairment charges (18)

Total change in Adjusted Operating Income (constant currency) (1)

(1) Refer to the Non-GAAP Financial Measures section.

(2) Refer to Note 7, Restructuring Program, for more information.

(3) Refer to Note 9, Financial Instruments , and the Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.

(4) Refer to Note 2, Acquisitions and Divestitures , for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and January 3, 2022 acquisition of Chipita.

(5) Refer to Note 1, Basis of Presentation , for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

(6) Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our developed markets gum and global Halls businesses.

During the second quarter of 2023, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Higher net pricing, which included the carryover impact of pricing actions taken in 2022 as well as the effects of input cost-driven pricing actions taken during the first six months of 2023, was reflected across all regions.

Overall, volume/mix benefited from improved product mix and continued strong demand for our snack category products across most regions.

Favorable volume/mix was driven by AMEA, North America and Latin America, partially offset by unfavorable volume/mix in Europe reflecting the impact from customer price negotiation disruptions.

The increase in input costs was driven by higher raw material costs, partially offset by lower manufacturing costs driven by productivity.

Higher raw material costs were in part due to higher energy, sugar, dairy, grains, packaging, cocoa, edible oils and other ingredients costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials.

Total selling, general and administrative expenses increased $193 million from the second quarter of 2022, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher divestiture-related costs, higher remeasurement loss of net monetary position and lapping prior-year decrease in estimated allowances and reserves associated with incremental costs incurred due to the war in Ukraine, which were partially offset by a favorable currency impact related to expenses, lower acquisition integration costs and contingent consideration adjustments, lapping prior-year acquisition-related costs and lower implementation costs incurred for the Simplify to Grow program.

Excluding these factors, selling, general and administrative expenses also increased $145 million from the second quarter of 2022.

The increase was driven primarily by higher advertising and consumer promotion costs and higher overhead costs in part due to increased investments in route to market capabilities.

Unfavorable currency changes decreased operating income by $53 million due primarily to the strength of the U.S.

dollar relative to most currencies, including the Russian ruble, Argentinean peso, Egyptian pound, Chinese yuan, Indian rupee and South African rand, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Mexican peso and euro.

Operating income margin increased from 12.7% in the second quarter of 2022 to 16.8% in the second quarter of 2023.

The increase was primarily driven by favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, higher Adjusted Operating Income margin, lower costs incurred for the Simplify to Grow program and lower acquisition integration costs and contingent consideration adjustments, partially offset by higher divestiture-related costs, lapping prior-year decrease in estimated allowances and reserves associated with incremental costs incurred due to the war in Ukraine and higher remeasurement loss of net monetary position.

Adjusted Operating Income margin increased from 15.1% for the second quarter of 2022 to 15.7% for the second quarter of 2023.

The increase was driven primarily by higher net pricing, overhead cost leverage, lower manufacturing and favorable product mix, partially offset by higher raw material costs.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $944 million increased by $197 million (26.4%) in the second quarter of 2023.

Diluted EPS attributable to Mondelēz International was $0.69 in the second quarter of 2023, up $0.15 (27.8%) from the second quarter of 2022.

Adjusted EPS (1) was $0.76 in the second quarter of 2023, up $0.11 (16.9%) from the second quarter of 2022.

Adjusted EPS on a constant currency basis (1) was $0.79 in the second quarter of 2023, up $0.14 (21.5%) from the second quarter of 2022.

For the Three Months Ended

2023 2022 $ Change % Change

Diluted EPS attributable to Mondelēz International $ 0.69 $ 0.54 $ 0.15 27.8 %

Simplify to Grow Program (2)

Mark-to-market (gains)/losses from derivatives (2)

(0.11) 0.08 (0.19)

Acquisition integration costs and

contingent consideration adjustments (2)

0.01 0.03 (0.02)

Divestiture-related costs (2)

Net earnings from divestitures (2)

— (0.03) 0.03

Incremental costs due to war in Ukraine (2)

— (0.01) 0.01

Remeasurement of net monetary position (2)

0.02 0.01 0.01

Initial impacts from enacted tax law changes (3)

— 0.01 (0.01)

Loss on marketable securities (4)

Loss on equity method investment transactions (4)

0.02 0.01 0.01

Adjusted EPS (1)

$ 0.76 $ 0.65 $ 0.11 16.9 %

Unfavorable currency translation 0.03 — 0.03

Total change in Adjusted Operating Income (1)

Adjusted Operating Income (1) for the

Three Months Ended March 31, 2023

Adjusted EPS (constant currency) (1)

$ 0.79 $ 0.65 $ 0.14 21.5 %

Key Drivers of Adjusted EPS (constant currency) $ Change

Increase in operations $ 0.15

Impact from acquisitions (2)

Change in benefit plan non-service income (0.01)

Change in interest and other expense, net (5)

Change in equity method investment net earnings 0.01

Change in income taxes (3)

Change in shares outstanding (6)

Total change in Adjusted EPS (constant currency) (1)

(1) Refer to the Non-GAAP Financial Measures section appearing later in this section.

The tax expense/(benefit) of each of the pre-tax items excluded from our U.S.

GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS.

• For the three months ended June 30, 2023, taxes for the:

Simplify to Grow Program were $(1) million, mark-to-market gains from derivatives were $21 million, acquisition integration costs and contingent consideration adjustments were $(9) million, divestiture-related costs were $(4) million, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $2 million, loss on marketable securities were $(45) million and loss on equity method investment transactions were $(1) million.

• For the three months ended June 30, 2022, taxes for the:

Simplify to Grow Program were $(6) million, mark-to-market losses from derivatives were $(14) million, acquisition integration costs and contingent consideration adjustments were $(1) million, acquisition-related costs were $(2) million, divestiture-related costs were $(1) million, net earnings from divestitures were $7 million, incremental costs due to the war in Ukraine were zero, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $9 million and loss on equity method transactions were zero.

(2) See the Operating Income table above and the related footnotes for more information.

(3) Refer to Note 14, Income Taxes , for more information on the items affecting income taxes.

(4) Refer to Note 6, Investments , for more information on gains/losses on equity method investment transactions and marketable securities.

(5) Excludes the currency impact on interest expense related to non-U.S.

dollar-denominated debt, which is included in currency translation.

(6) Refer to Note 11, Stock Plans , for more information on our equity compensation programs and share repurchase program and Note 15, Earnings per Share , for earnings per share weighted-average share information.

Six Months Ended June 30:

For the Six Months Ended

2023 2022 $ change % change

(in millions, except per share data)

Net revenues $ 17,673 $ 15,038 $ 2,635 17.5 %

Operating income 2,930 2,021 909 45.0 %

Net earnings attributable to

Mondelēz International

3,025 1,602 1,423 88.8 %

Diluted earnings per share attributable to

Mondelēz International

2.20 1.15 1.05 91.3 %

Net Revenues – Net revenues increased $2,635 million (17.5%) to $17,673 million in the first six months of 2023, and Organic Net Revenue (1) increased $2,653 million (17.7%) to $17,670 million.

Emerging markets net revenues increased 19.7% and emerging markets Organic Net Revenue increased 24.3% (1) .

Developed markets net revenues increased 16.2% and developed markets Organic Net Revenue increased 13.6% (1) .

The underlying changes in net revenues and Organic Net Revenue are detailed below:

Markets Developed

Markets Mondelēz

International

Six Months Ended June 30, 2023

Reported (GAAP) $ 6,904 $ 10,769 $ 17,673

Acquisitions (293) (458) (751)

Currency 535 213 748

Organic (Non-GAAP) $ 7,146 $ 10,524 $ 17,670

Six Months Ended June 30, 2022

Reported (GAAP) $ 5,770 $ 9,268 $ 15,038

Divestitures (21) — (21)

Organic (Non-GAAP) $ 5,749 $ 9,268 $ 15,017

Reported (GAAP) 19.7 % 16.2 % 17.5 %

Divestitures 0.4 pp — pp 0.2 pp

Acquisitions (5.1) (4.9) (5.0)

Currency 9.3 2.3 5.0

Organic (Non-GAAP) 24.3 % 13.6 % 17.7 %

Vol/Mix 3.4 pp 0.7 pp 1.7 pp

Pricing 20.9 12.9 16.0

(1) Please see the Non-GAAP Financial Measures section at the end of this item.

Net revenue increase of 17.5% was driven by our underlying Organic Net Revenue growth of 17.7% and the impact of acquisitions, partially offset by unfavorable currency translation and the impact of divestitures.

Overall, we continued to see strong demand for our snack category products across most regions.

Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.

Higher net pricing in all regions was due to the benefit of carryover pricing from 2022 as well as the effects of input cost-driven pricing actions taken during the first six months of 2023.

Favorable volume/mix was driven by AMEA, North America and Latin America reflecting both improved product mix and volume gains, partially offset by unfavorable volume/mix in Europe reflecting the impact from customer price negotiation disruptions.

The November 1, 2022 acquisition of Ricolino added incremental net revenues of $293 million (constant currency basis) and the August 1, 2022 acquisition of Clif Bar added incremental net revenues of $458 million.

Unfavorable currency impacts decreased net revenues by $748 million, due primarily to the strength of the U.S.

dollar relative to most currencies, including the Argentinean peso, British pound sterling, Indian rupee, Egyptian pound, Turkish lira, Chinese yuan, euro, Australian dollar and South African rand, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Mexican peso.

The impact of our 2022 divestitures resulted in a year-over-year reduction in net revenues of $21 million.

Refer to Note 2, Acquisitions and Divestitures, for additional information.

Operating Income – Operating income increased $909 million (45.0%) to $2,930 million in the first six months of 2023.

Adjusted Operating Income (1) increased $439 million (17.7%) to $2,913 million and Adjusted Operating Income on a constant currency basis (1) increased $573 million (23.2%) to $3,047 million due to the following:

For the Six Months Ended

2023 2022 $ Change % Change

(in millions)

Operating Income $ 2,930 $ 2,021 $ 909 45.0 %

Simplify to Grow Program (2)

Mark-to-market gains from derivatives (4)

Acquisition integration costs and contingent consideration adjustments (5)

Intangible asset impairment charge (3)

Mark-to-market (gains)/losses from derivatives (4)

(220) 82 (302)

Acquisition integration costs and

contingent consideration adjustments (5)

Acquisition-related costs (5)

Divestiture-related costs (5) (7)

Operating income from divestitures (5)

Incremental costs due to war in Ukraine (6)

(3) 128 (131)

Remeasurement of net monetary position (6)

Operating Income for the Three Months Ended March 31, 2023

Adjusted Operating Income (1)

$ 2,913 $ 2,474 $ 439 17.7 %

(1) Refer to the Non-GAAP Financial Measures section.

Unfavorable currency translation 134 — 134

Adjusted Operating Income (constant currency) (1)

$ 3,047 $ 2,474 $ 573 23.2 %

Key Drivers of Adjusted Operating Income (constant currency) $ Change

Higher net pricing 2,403

Higher input costs (1,681)

Favorable volume/mix 108

Higher selling, general and administrative expenses (307)

Impact from acquisitions (5)

Lower amortization of intangible assets 1

Higher asset impairment charges $ (35)

Total change in Adjusted Operating Income (constant currency) (1)

(1) Refer to the Non-GAAP Financial Measures section at the end of this item.

(2) Refer to Note 7, Restructuring Program, for more information.

(3) Refer to Note 5, Goodwill and Intangible Assets , for more information.

(4) Refer to Note 9, Financial Instruments , and the Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.

(5) Refer to Note 2, Acquisitions and Divestitures , for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and January 3, 2022 acquisition of Chipita.

(4) Refer to Note 9, Financial Instruments , Note 16, Segment Reporting , and Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.

(5) Refer to Note 2, Acquisitions and Divestitures , for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and the January 3, 2022 acquisition of Chipita.

(6) Refer to Note 1, Basis of Presentation , for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

(7) Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our developed markets gum and global Halls businesses.

During the first quarter of 2023, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Higher net pricing, which included the carryover impact of pricing actions taken in 2022 as well as the effects of input cost-driven pricing actions taken during the first quarter of 2023, was reflected across all regions.

Favorable volume/mix was also reflected across all regions.

Overall, volume/mix benefited from strong volume growth due to continued increased demand for our snack category products.

The increase in input costs was driven by higher raw material costs as well as higher manufacturing costs.

Higher raw material costs were in part due to higher dairy, energy, edible oils, sugar, grains, packaging, nuts, cocoa and other ingredients costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials.

Total selling, general and administrative expenses increased $162 million from the first quarter of 2022, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher divestiture-related costs, higher acquisition integration costs and contingent consideration adjustments and higher remeasurement loss of net monetary position, which were offset by a favorable currency impact related to expenses, lower incremental costs due to the war in Ukraine, lapping prior-year acquisition-related costs and lower implementation costs incurred for the Simplify to Grow program.

Excluding these factors, selling, general and administrative expenses also increased $162 million from the first quarter of 2022.

During the first six months of 2023, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Overall, volume/mix benefited from improved product mix and continued strong demand for our snack category products across most regions.

Favorable volume/mix was driven by AMEA, Latin America and North America, partially offset by unfavorable volume/mix in Europe reflecting the impact from customer price negotiation disruptions.

The increase in input costs was driven by higher raw material costs, partially offset by lower manufacturing costs driven by productivity.

Higher raw material costs were in part due to higher energy, dairy, sugar, grains, edible oils, packaging, cocoa, nuts and other ingredients costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials.

Total selling, general and administrative expenses increased $355 million from the first six months of 2022, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher divestiture-related costs and higher remeasurement loss of net monetary position, which were partially offset by a favorable currency impact related to expenses, lapping prior-year acquisition-related costs, lapping prior-year incremental costs due to the war in Ukraine, lower implementation costs incurred for the Simplify to Grow program and lower acquisition integration costs and contingent consideration adjustments.

Excluding these factors, selling, general and administrative expenses increased $307 million from the first six months of 2022.

The increase was driven primarily by higher advertising and consumer promotion costs and higher overhead costs in part due to increased investments in route to market capabilities,

Unfavorable currency changes decreased operating income by $81 million due primarily to the strength of the U.S.

dollar relative to most currencies, including the British pound sterling, euro, Argentinean peso, Indian rupee, Egyptian pound, Chinese yuan and Turkish lira, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Russian ruble, Mexican peso and Brazilian real.

Operating income margin increased from 14.1% in the first quarter of 2022 to 16.4% in the first quarter of 2023.

The increase was primarily driven by lapping prior-year incremental costs due to the war in Ukraine, lapping prior-year intangible asset impairment charges, lapping prior-year acquisition-related costs and favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, partially offset by a decrease in Adjusted Operating Income margin, higher divestiture-related costs, higher acquisition integration costs and contingent consideration adjustments and higher remeasurement loss of net monetary position.

Adjusted Operating Income margin decreased from 17.8% for the first quarter of 2022 to 17.2% for the first quarter of 2023.

The decrease was driven primarily by higher raw material costs, partially offset by higher net pricing and overhead cost leverage.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $2,081 million increased by $1,226 million (143.4%) in the first quarter of 2023.

Diluted EPS attributable to Mondelēz International was $1.52 in the first quarter of 2023, up $0.91 (149.2%) from the first quarter of 2022.

Adjusted EPS (1) was $0.89 in the first quarter of 2023, up $0.08 (9.9%) from the first quarter of 2022.

Adjusted EPS on a constant currency basis (1) was $0.95 in the first quarter of 2023, up $0.14 (17.3%) from the first quarter of 2022.

Diluted EPS Attributable to Mondelēz International for the

Three Months Ended March 31, 2022

Unfavorable currency changes decreased operating income by $134 million primarily due to the strength of the U.S.

dollar relative to most currencies, including the Argentinean peso, British pound sterling, Egyptian pound, Russian ruble, Indian rupee, Chinese yuan, and South African rand, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Mexican peso.

Operating income margin increased from 13.4% in the first six months of 2022 to 16.6% in the first six months of 2023.

The increase in operating income margin was driven primarily by the favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, lapping prior-year incremental costs due to the war in Ukraine, lapping prior-year intangible asset impairment charges, lower costs incurred for the Simplify to Grow program and lapping prior-year acquisition-related costs, partially offset by higher divestiture-related costs, and higher remeasurement loss of net monetary position.

Adjusted Operating Income margin of 16.5% for the first six months of 2023 was flat compared to the first six months of 2022, as higher net pricing and overhead cost leverage was offset by higher raw material costs.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $3,025 million increased by $1,423 million (88.8%) in the first six months of 2023 .

Diluted EPS attributable to Mondelēz International was $2.20 in the first six months of 2023, up $1.05 (91.3%) from the first six months of 2022.

Adjusted EPS (1) was $1.65 in the first six months of 2023, up $0.19 (13.0%) from the first six months of 2022.

Adjusted EPS on a constant currency basis (1) was $1.75 in the first six months of 2023, up $0.29 (19.9%) from the first six months of 2022.

For the Six Months Ended

2023 2022 $ Change % Change

Diluted EPS attributable to Mondelēz International $ 2.20 $ 1.15 $ 1.05 91.3 %

Simplify to Grow Program (2)

Intangible asset impairment charge (2)

Mark-to-market gains from derivatives (2)

Acquisition integration costs and contingent consideration adjustments (2)

— 0.04 (0.04)

Mark-to-market (gains)/losses from derivatives (2)

(0.14) 0.06 (0.20)

Acquisition integration costs and

contingent consideration adjustments (2)

0.04 0.02 0.02

Acquisition-related costs (2)

Net earnings from divestitures (2)

Loss on debt extinguishment and related expenses (3)

Incremental cost due to war in Ukraine (2)

Adjusted EPS (1) for the Three Months Ended March 31, 2022

Increase in operations 0.13

Decrease in equity method investment net earnings (0.01)

Impact from acquisition (2)

Changes in benefit plan non-service income

Changes in interest and other expense, net (4)

Dividend income from marketable securities 0.01

Changes in income taxes (6)

Changes in shares outstanding (7)

Adjusted EPS (constant currency) (1) for the Three Months Ended March 31, 2023

Unfavorable currency translation (0.06)

Adjusted EPS (1) for the Three Months Ended March 31, 2023

Simplify to Grow Program (2)

Gain from derivatives (2)

Acquisition integration costs and contingent consideration adjustments (2)

— 0.02 (0.02)

Divestiture-related costs (2)

Net earnings from divestitures (2)

(0.01) (0.05) 0.04

Incremental costs due to war in Ukraine (2)

— 0.09 (0.09)

Remeasurement of net monetary position (2)

0.03 0.01 0.02

Loss on debt extinguishment and related expenses (3)

— 0.07 (0.07)

Initial impacts from enacted tax law changes (4)

— 0.01 (0.01)

Gain on marketable securities (5)

Gain on equity method investment transactions (5)

(0.32) — (0.32)

(Gain)/loss on equity method investment transactions (5)

(0.25) 0.01 (0.26)

Equity method investee items (6)

Diluted EPS Attributable to Mondelēz International for the

Three Months Ended March 31, 2023

Adjusted EPS (1)

$ 1.65 $ 1.46 $ 0.19 13.0 %

Unfavorable currency translation 0.10 — 0.10

Adjusted EPS (constant currency) (1)

$ 1.75 $ 1.46 $ 0.29 19.9 %

Key Drivers of Adjusted EPS (constant currency) $ Change

Increase in operations $ 0.27

Impact from acquisitions 0.05

Change in benefit plan non-service income (0.01)

Change in interest and other expense, net (7)

Dividend income from marketable securities 0.01

Change in equity method investment net earnings (5)

Change in income taxes (4)

Change in shares outstanding (8)

Total change in Adjusted EPS (constant currency) (1)

(1) Refer to the Non-GAAP Financial Measures section appearing later in this section.

The tax expense/(benefit) of each of the pre-tax items excluded from our U.S.

GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS.

• For the six months ended June 30, 2023, taxes for the:

Simplify to Grow Program were $(7) million, mark-to-market gains from derivatives were $29 million, acquisition integration costs and contingent consideration adjustments were $(22) million, divestiture-related costs were $(8) million, net earnings from divestitures were $4 million, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $2 million, gain on marketable securities were $156 million, gain on equity method investment transactions were $124 million and equity method investee items were zero.

• For the six months ended June 30, 2022, taxes for the:

Simplify to Grow Program were $(13) million, intangible asset impairment charge was $(19) million, mark-to-market losses from derivatives were $(19) million, acquisition integration costs and contingent consideration adjustments were $(51) million, acquisition-related costs were $(3) million, net earnings from divestitures were $17 million, incremental costs due to the war in Ukraine were $2 million, remeasurement of net monetary position were zero, loss on debt extinguishment and related expenses were $(31) million, initial impacts from enacted tax law changes were $9 million and loss on equity method investment transactions were zero.

(2) See the Operating Income table above and the related footnotes for more information.

(3) Refer to Note 8, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses.

(4) Excludes the currency impact on interest expense related to non-U.S.

(4) Refer to Note 14, Income Taxes , on the items affecting income taxes.

(5) Refer to Note 6, Investments , for more information on the gain/(loss) on equity method investment transactions and marketable securities.

(6) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee, such as acquisition and divestiture-related costs and restructuring program costs.

(7) Excludes the currency impact on interest expense related to our non-U.S.

dollar-denominated debt, which is included in currency translation.

(5) Refer to Note 6, Investments , for more information on gains/losses on equity method investment transactions and marketable securities.

(6) Refer to Note 14, Income Taxes , for more information on the items affecting income taxes.

(8) Refer to Note 11, Stock Plans , for more information on our equity compensation programs and share repurchase program and Note 15, Earnings per Share , for earnings per share weighted-average share information.

(8) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee, such as acquisition and divestiture-related costs and restructuring program costs.

Results of Operations by Reportable Segment

9 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2023 2022 2023 2022

(in millions)

8 unchanged sentences

Latin America $ 134 $ 90 $ 273 $ 193

AMEA 207 211 567 483

Europe 449 380 956 757

8 unchanged sentences

Interest and other expense, net (97) (98) (192) (266)

Gain on marketable securities 796 —

(Loss)/gain on marketable securities (189) — 607 —

Earnings before income taxes $ 1,161 $ 859 $ 3,386 $ 1,818

5 unchanged sentences

Segment operating income 134 90 44 48.9 %

Three Months Ended March 31

For the Six Months Ended

2023 2022 $ change % change

(in millions)

Net revenues $ 2,439 $ 1,702 $ 737 43.3 %

Segment operating income 273 193 80 41.5 %

Three Months Ended June 30

Net revenues increased $352 million (40.2%), due to higher net pricing (35.1 pp), the impact of an acquisition (15.9 pp) and favorable volume/mix (2.6 pp), partially offset by unfavorable currency (11.5 pp) and the impact of divestitures (1.9 pp).

Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories, primarily in Argentina, Brazil and Mexico.

The November 1, 2022 acquisition of Ricolino added incremental net revenues of $156 million (constant currency basis) in the first quarter of 2023.

The November 1, 2022 acquisition of Ricolino added incremental net revenues of $137 million (constant currency basis) in the second quarter of 2023.

Favorable volume/mix reflected continued strong demand for our snack category products.

Favorable volume/mix was driven by gains in gum, biscuits & baked snacks and candy, partially offset by declines in chocolate, refreshment beverages and cheese & grocery.

Unfavorable currency impacts were primarily due to the strength of the U.S.

dollar relative to several currencies in the region, primarily the Argentinean peso, Colombian peso and Brazilian real, partially offset by the strength of several currencies relative to the U.S.

dollar, primarily the Mexican peso.

The impact of divestitures resulted in a year-over-year decline in net revenues of $12 million.

Segment operating income increased $44 million (48.9%), primarily due to higher net pricing, the impact of our Ricolino acquisition and favorable volume/mix.

These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, unfavorable currency and acquisition integration costs incurred in the second quarter of 2023.

Six Months Ended June 30:

Net revenues increased $737 million (43.3%), due to higher net pricing (33.4 pp), the impact of an acquisition (17.4 pp) and favorable volume/mix (5.0 pp), partially offset by unfavorable currency (10.7 pp) and the impact of divestitures (1.8 pp).

Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories, primarily in Argentina, Brazil and Mexico.

The November 1, 2022 acquisition of Ricolino added incremental net revenues of $293 million (constant currency basis) in the first six months of 2023.

Favorable volume/mix reflected strong volume growth as the region continued to see increased demand for our snack category products.

Favorable volume/mix was driven by gains in gum, biscuits & baked snacks, chocolate, candy and cheese & grocery, partially offset by a decline in refreshment beverages.

Favorable volume/mix was driven by gains in gum, biscuits & baked snacks, candy and cheese & grocery, partially offset by declines in refreshment beverages and chocolate.

Unfavorable currency impacts were primarily due to the strength of the U.S.

2 unchanged sentences

The impact of divestitures resulted in a year-over-year decline in net revenues of $21 million.

Segment operating income increased $36 million (35.0%), primarily due to higher net pricing and favorable volume/mix.

These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, higher remeasurement loss on net monetary position and acquisition integration costs incurred in the first quarter of 2023.

Segment operating income increased $80 million (41.5%), primarily due to higher net pricing, favorable volume/mix and the impact of our Ricolino acquisition.

These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, acquisition integration costs incurred in the first six months of 2023, unfavorable currency and higher remeasurement loss on net monetary position.

For the Three Months Ended

3 unchanged sentences

Segment operating income 207 211 (4) (1.9) %

Three Months Ended March 31

For the Six Months Ended

2023 2022 $ change % change

(in millions)

Net revenues $ 3,548 $ 3,402 $ 146 4.3 %

Segment operating income 567 483 84 17.4 %

Three Months Ended June 30

Net revenues increased $74 million (4.8%), due to higher net pricing (9.9 pp) and favorable volume/mix (3.3 pp), partially offset by unfavorable currency (8.4 pp).

Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories.

Favorable volume/mix reflected continued strong demand for our snack category products.

Favorable volume/mix was driven by gains in chocolate, gum, candy and refreshment beverages, partially offset by declines in biscuits & baked snacks and cheese & grocery.

Unfavorable currency impacts were due to the strength of the U.S.

dollar relative to most currencies in the region, including the Chinese yuan, Indian rupee, Egyptian pound, South African Rand and Australian dollar.

Segment operating income decreased $4 million (1.9%), primarily due to higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs and unfavorable currency.

These unfavorable items were partially offset by higher net pricing, favorable volume/mix and lower manufacturing costs driven by productivity.

Six Months Ended June 30:

Net revenues increased $146 million (4.3%), due to higher net pricing (8.9 pp) and favorable volume/mix (4.6 pp), partially offset by unfavorable currency (9.2 pp).

Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories.

Favorable volume/mix reflected overall volume gains from increased demand for our snack category products.

Favorable volume/mix was driven by gains in chocolate, biscuits & baked snacks, refreshment beverages and candy, partially offset by declines in gum and cheese & grocery.

Favorable volume/mix was driven by gains in chocolate, refreshment beverages, gum, candy and biscuits & baked snacks, partially offset by a decline in cheese & grocery.

Unfavorable currency impacts were due to the strength of the U.S.

dollar relative to most currencies in the region, including the Indian rupee, Egyptian pound, Chinese yuan, Australian dollar, Pakistan rupee and South African Rand.

Segment operating income increased $88 million (32.4%), primarily due to higher net pricing, lapping prior-year intangible asset impairment charges, favorable volume/mix, lower other selling, general and administrative expenses and lower manufacturing costs driven by productivity.

These favorable items were partially offset by higher raw material costs, unfavorable currency, higher advertising and consumer promotion costs and higher fixed asset impairment charges.

dollar relative to most currencies in the region, including the Indian rupee, Egyptian pound, Chinese yuan, Australian dollar, South African Rand and Pakistan rupee.

Segment operating income increased $84 million (17.4%), primarily due to higher net pricing, favorable volume/mix, lapping prior-year intangible asset impairment charges and lower manufacturing costs driven by productivity.

These favorable items were partially offset by higher raw material costs, unfavorable currency, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses and higher fixed asset impairment charges.

For the Three Months Ended

3 unchanged sentences

Segment operating income 449 380 69 18.2 %

Three Months Ended March 31

Net revenues increased $372 million (12.7%), due to higher net pricing (17.9 pp) and favorable volume/mix (1.0 pp), partially offset by unfavorable currency (6.2 pp).

For the Six Months Ended

2023 2022 $ change % change

(in millions)

Net revenues $ 6,233 $ 5,561 $ 672 12.1 %

Segment operating income 956 757 199 26.3 %

Three Months Ended June 30

Net revenues increased $300 million (11.4%), due to higher net pricing (17.6 pp), partially offset by unfavorable volume/mix (4.5 pp) and unfavorable currency (1.7 pp).

Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories.

Favorable volume/mix was driven by gains in chocolate, gum, candy and refreshment beverages, partially offset by declines in biscuits & baked snacks and cheese & grocery.

Overall, unfavorable volume/mix reflected volume declines due to the impact from customer price negotiation disruptions.

Unfavorable volume/mix was driven by declines in biscuits & baked snacks, cheese & grocery, chocolate and candy, partially offset by gains in gum and refreshment beverages.

Unfavorable currency impacts reflected the strength of the U.S.

dollar relative to most currencies across the region, including the British pound sterling, euro, Turkish lira, Norwegian krone, Ukrainian hryvnya, Swedish krona and Polish zloty, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Russian ruble.

Segment operating income increased $130 million (34.5%), primarily due to higher net pricing, lapping the prior-year incremental costs incurred due to the war in Ukraine, lower other selling, general and administrative expenses, lower acquisition integration costs and favorable volume/mix.

These favorable items were partially offset by higher raw material costs, unfavorable currency, higher manufacturing costs, divestiture-related costs incurred in the first quarter of 2023, higher costs incurred for the Simplify to Grow program and higher advertising and consumer promotion costs.

dollar relative to several currencies across the region, including the Russian ruble and Turkish lira, partially offset by the strength of several currencies relative to the U.S.

dollar, primarily the euro.

Segment operating income increased $69 million (18.2%), primarily due to higher net pricing, lower other selling, general and administrative expenses, lower acquisition integration costs, lower manufacturing costs driven by productivity and lower costs incurred for the Simplify to Grow program.

These favorable items were partially offset by higher raw material costs, unfavorable volume/mix, unfavorable currency, remeasurement loss on monetary position, lapping the prior-year decrease in estimated allowances and reserves associated with incremental costs incurred due to the war in Ukraine, divestiture-related costs incurred in the second quarter of 2023, and higher advertising and consumer promotion costs.

Six Months Ended June 30:

Net revenues increased $672 million (12.1%), due to higher net pricing (17.7 pp), partially offset by unfavorable currency (4.1 pp) and unfavorable volume/mix (1.5 pp).

Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories.

Unfavorable currency impacts reflected the strength of the U.S.

dollar relative to most currencies across the region, including the British pound sterling, Turkish lira, euro, Ukrainian hryvnya, Norwegian krone, Russian ruble and Swedish krona.

Overall, unfavorable volume/mix reflected volume declines due to the impact from customer price negotiation disruptions.

Unfavorable volume/mix was driven by declines in biscuits & baked snacks, cheese & grocery and chocolate, partially offset by gains in gum, candy and refreshment beverages.

Segment operating income increased $199 million (26.3%), primarily due to higher net pricing, lapping the prior-year incremental costs incurred due to the war in Ukraine, lower other selling, general and administrative expenses and lower acquisition integration costs.

These favorable items were partially offset by higher raw material costs, unfavorable currency, divestiture-related costs incurred in the first six months of 2023, higher advertising and consumer promotion costs, unfavorable volume/mix, higher manufacturing costs, remeasurement loss on net monetary position and higher costs incurred for the Simplify to Grow program.

North America

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Segment operating income 580 454 126 27.8 %

Three Months Ended March 31

Net revenues increased $573 million (26.8%), due to higher net pricing (15.0 pp), the impact of acquisitions (10.2 pp) and favorable volume/mix (2.3 pp), partially offset by unfavorable currency (0.7 pp).

For the Six Months Ended

2023 2022 $ change % change

(in millions)

Net revenues $ 5,453 $ 4,373 $ 1,080 24.7 %

Segment operating income 1,146 872 274 31.4 %

Three Months Ended June 30

Net revenues increased $507 million (22.7%), due to the impact of an acquisition (10.8 pp), higher net pricing (10.4 pp) and favorable volume/mix (2.0 pp), partially offset by unfavorable currency (0.5 pp).

The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $240 million in the second quarter of 2023.

Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories.

The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $218 million in the first quarter of 2023.

Favorable volume/mix was driven by gains in biscuits & baked snacks, gum and chocolate, partially offset by a decline in candy.

Overall, favorable volume/mix reflected volume gains from increased demand for our snack category products.

Favorable volume/mix was driven by gains in biscuits & baked snacks and gum, partially offset by declines in candy and chocolate.

Unfavorable currency impact was due to the strength of the U.S.

dollar relative to the Canadian dollar.

Segment operating income increased $148 million (35.4%), primarily due to higher net pricing, the impact of an acquisition, lower costs incurred for the Simplify to Grow Program and favorable volume/mix.

These favorable items were partially offset by higher raw material costs, higher acquisition integration costs and contingent consideration adjustments, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses, higher manufacturing costs and higher fixed asset impairment charges.

Segment operating income increased $126 million (27.8%), primarily due to higher net pricing, the impact of our Clif Bar acquisition, lower manufacturing costs driven by productivity, favorable volume/mix and lower costs incurred for the Simplify to Grow Program.

These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, higher acquisition integration costs and contingent consideration adjustments, higher divestiture-related costs and higher fixed asset impairment charges.

Six Months Ended June 30:

Net revenues increased $1,080 million (24.7%), due to higher net pricing (12.7 pp), the impact of an acquisition (10.5 pp) and favorable volume/mix (2.1 pp), partially offset by unfavorable currency (0.6 pp).

Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories.

The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $458 million in the first six months of 2023.

Overall, favorable volume/mix reflected volume gains from increased demand for our snack category products.

Favorable volume/mix was driven by gains in biscuits & baked snacks and gum, partially offset by declines in candy and chocolate.

Unfavorable currency impact was due to the strength of the U.S.

dollar relative to the Canadian dollar.

Segment operating income increased $274 million (31.4%), primarily due to higher net pricing, the impact of our Clif Bar acquisition, favorable volume/mix, lower costs incurred for the Simplify to Grow Program and lower manufacturing costs driven by productivity.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses, higher acquisition integration costs and contingent consideration adjustments, higher fixed asset impairment charges, higher divestiture-related costs and unfavorable currency.

Liquidity and Capital Resources

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We also use intercompany loans with our international subsidiaries to improve financial flexibility.

Our investments in JDE Peet's and KDP also provide us additional flexibility.

Our investment in JDE Peet's also provides us additional flexibility.

Overall, we do not expect negative effects to our funding sources that would have a material effect on our liquidity, and we continue to monitor our operations in Europe and related effects from the war in Ukraine.

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Long-term cash requirements primarily relate to funding long-term debt repayments (refer to Note 8, Debt and Borrowing Arrangements ), our U.S.

tax reform transition tax liability and deferred taxes (refer to Note 16, Income Taxes, in our Annual Report on Form 10-K), our long-term benefit plan obligations (refer to Note 10, Benefit Plans, and Note 11 , Benefit Plans, in our Annual report on Form 10-K) and commodity-related purchase commitments and derivative contracts (refer to Note 9, Financial Instruments ).

tax reform transition tax liability and deferred taxes (refer to Note 16, Income Taxes, in our Annual Report on Form 10-K for the year ended December 31, 2022), our long-term benefit plan obligations (refer to Note 10, Benefit Plans, and Note 11 , Benefit Plans, in our Annual report on Form 10-K for the year ended December 31, 2022) and commodity-related purchase commitments and derivative contracts (refer to Note 9, Financial Instruments ).

We generally fund short- and long-term cash requirements with cash from operating activities as well as cash proceeds from short- and long-term debt financing (refer to Debt below).

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Our cash flow activity is noted below:

Three months ended March 31, 2023

Six Months Ended June 30, 2023

(in millions)

Net cash provided by operating activities $ 1,973 $ 1,967

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Net Cash Provided by Operating Activities

The change in net cash provided by operating activities was essentially flat primarily due to increased year-over-year working capital requirements offset by an increase in cash-basis net earnings.

The change in net cash provided by operating activities was essentially flat primarily due to an increase in cash-basis net earnings partially offset by increased year-over-year working capital requirements.

This is largely a result of business growth and acquisitions completed during 2022.

Net Cash (Used in)/Provided by Investing Activities

The improvement in net cash provided by/used in investing activities was largely driven by current year proceeds from the KDP share sale (refer to Note 6, Investments ) and lapping prior-year cash consideration paid for the Chipita acquisition (refer to Note 2, Acquisitions and Divestitures ).

The improvement in net cash provided by/used in investing activities was largely driven by higher proceeds from the current year KDP and JDEP share sales compared to the prior year JDEP share sale (refer to Note 6, Investments ) and lapping prior-year cash consideration paid for the Chipita acquisition (refer to Note 2, Acquisitions and Divestitures ).

We continue to make capital expenditures primarily to modernize manufacturing facilities, implement new product manufacturing and support productivity initiatives.

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Net Cash Used in Financing Activities

The increase in cash used in financing activities was primarily due to lower debt proceeds, partially offset by lower debt repayments and lower share repurchases in the first three months of 2023 compared to the same prior-year period.

We paid dividends of $529 million in the first three months of 2023 and $491 million in the first three months of 2022.

The first quarter 2023 dividend of $0.385 per share, declared on February 1, 2023 for shareholders of record as of March 31, 2023, was paid on April 14, 2023.

The increase in cash used in financing activities was primarily due to lower debt proceeds, partially offset by lower share repurchases in the first six months of 2023 compared to the same prior-year period.

We paid dividends of $1,055 million in the first six months of 2023 and $977 million in the first six months of 2022.

The second quarter 2023 dividend of $0.385 per share, declared on May 17, 2023 for shareholders of record as of June 30, 2023, was paid on July 14, 2023.

On July 27, 2023, the Audit Committee, with authorization delegated from our Board of Directors, declared a quarterly cash dividend of $0.425 per share of Class A Common Stock, an increase of 10 percent.

This dividend is payable on October 13, 2023, to shareholders of record as of September 29, 2023.

The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to its analysis and decision making.

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As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures.

At March 31, 2023, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

As of June 30, 2023 and December 31, 2022, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

Guarantees do not have, and we do not expect them to have, a material effect on our liquidity.

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At its July 2022 meeting, the Board of Directors approved a new $2 billion long-term financing authorization that replaced the prior long-term financing authorization of $7 billion.

As of March 31, 2023, $1.5 billion of the long-term financing authorization remained available.

Our total debt was $22.2 billion at March 31, 2023 and $22.9 billion at December 31, 2022.

Our debt-to-capitalization ratio was 0.44 at March 31, 2023 and 0.46 at December 31, 2022.

At March 31, 2023, the weighted-average term of our outstanding long-term debt was 8.2 years.

Our average daily commercial paper borrowings outstanding were $2.8 billion in the first three months of 2023 and $1.2 billion in the first three months of 2022.

As of June 30, 2023, $1.5 billion of the long-term financing authorization remained available.

Our total debt was $21.2 billion at June 30, 2023 and $22.9 billion at December 31, 2022.

Our debt-to-capitalization ratio was 0.43 at June 30, 2023 and 0.46 at December 31, 2022.

At June 30, 2023, the weighted-average term of our outstanding long-term debt was 8.3 years.

Our average daily commercial paper borrowings outstanding were $3 billion in the first six months of 2023 and $1.2 billion in the first six months of 2022.

One of our subsidiaries, Mondelez International Holdings Netherlands B.V.

(“MIHN”), has outstanding debt.

The operations held by MIHN generated approximately 72.8% (or $6.7 billion) of the $9.2 billion of consolidated net revenue in the three months ended March 31, 2023.

The operations held by MIHN represented approximately 82.7% (or $23.4 billion) of the $28.3 billion of net assets as of March 31, 2023.

The operations held by MIHN generated approximately 71.2% (or $12.6 billion) of the $17.7 billion of consolidated net revenue in the six months ended June 30, 2023.

The operations held by MIHN represented approximately 83.6% (or $24.0 billion) of the $28.7 billion of net assets as of June 30, 2023.

Refer to Note 8, Debt and Borrowing Arrangements, for more information on our debt and debt covenants.

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We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production.

During the first three months of 2023, the primary drivers of the increase in our aggregate commodity costs were higher dairy, energy, edible oils, sugar, grains, packaging, nuts, cocoa and other ingredient costs, as well as unfavorable year-over-year currency exchange transaction costs on imported materials.

During the first six months of 2023, the primary drivers of the increase in our aggregate commodity costs were higher energy, dairy, sugar, grains, edible oils, packaging, cocoa, nuts and other ingredient costs, as well as unfavorable year-over-year currency exchange transaction costs on imported materials.

A number of external factors such as the current macroeconomic environment, including global inflation, effects of the war in Ukraine, climate and weather conditions, commodity, transportation and labor market conditions, currency fluctuations and the effects of governmental agricultural or other programs affect the cost and availability of raw materials and agricultural materials used in our products.

We address higher commodity costs and currency impacts primarily through hedging, higher pricing and manufacturing and overhead cost control.

We use hedging techniques to limit the impact of fluctuations in the cost of our principal raw materials;

however, we may not be able to fully

hedge against commodity cost changes, such as dairy, where there is a limited ability to hedge, and our hedging strategies may not protect us from increases in specific raw material costs.

We use hedging techniques

to limit the impact of fluctuations in the cost of our principal raw materials;

however, we may not be able to fully hedge against commodity cost changes, such as dairy, where there is a limited ability to hedge, and our hedging strategies may not protect us from increases in specific raw material costs.

Due to competitive or market conditions, planned trade or promotional incentives, fluctuations in currency exchange rates or other factors, our pricing actions may also lag commodity cost changes temporarily.

As a result of international supply chain, transportation and labor market disruptions and generally higher commodity, transportation and labor costs in the first three months of 2023, we expect price volatility and a higher aggregate cost environment to continue.

As a result of international supply chain, transportation and labor market disruptions and generally higher commodity, transportation and labor costs in the first six months of 2023, we expect price volatility and a higher aggregate cost environment to continue.

While the costs of our principal raw materials fluctuate, we believe there will continue to be an adequate supply of the raw materials we use and that they will generally remain available.

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• geopolitical uncertainty, including the impact of ongoing or new developments in the war in Ukraine, related current and future sanctions imposed by governments and other authorities and related impacts, including on our business operations, employees, reputation, brands, financial condition and results of operations;

• global or regional health pandemics or epidemics, including COVID-19;

• global or regional health pandemics or epidemics;

• competition and our response to channel shifts and pricing and other competitive pressures;

• pricing actions;

• pricing actions and customer and consumer responses to such actions;

• promotion and protection of our reputation and brand image;

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• our ability to identify, complete, manage and realize the full extent of the benefits, cost savings or synergies presented by strategic transactions, including our recently completed acquisitions of Ricolino, Clif Bar, Chipita, Gourmet Food, Grenade and Hu, and the anticipated closing of our planned divestiture of our developed market gum business in North America and Europe;

• our investments and our ownership interests in those investments, including JDE Peet's and KDP;

• our investments and our ownership interests in those investments, including JDE Peet's;

• the restructuring program and our other transformation initiatives not yielding the anticipated benefits;

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• changes in currency exchange rates, controls and restrictions;

• volatility of and access to capital or other markets, the effectiveness of our cash management programs and our liquidity;

• volatility of and access to capital or other markets, rising interest rates, the effectiveness of our cash management programs and our liquidity;

• pension costs;

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When our definitions change, we provide the updated definitions and present the related non-GAAP historical results on a comparable basis (1) .

• “Organic Net Revenue” is defined as net revenues excluding the impacts of acquisitions, divestitures (2) and currency rate fluctuations (3) .

We also evaluate Organic Net Revenue growth from emerging markets and developed markets.

• “Organic Net Revenue” is defined as net revenues (the most comparable U.S.

GAAP financial measure) excluding the impacts of acquisitions, divestitures (2) and currency rate fluctuations (3) .

We believe that

Organic net revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results.

We also evaluate Organic Net Revenue growth from emerging markets and developed markets, and these underlying measures are also reconciled to U.S.

• Our emerging markets include our Latin America region in its entirety;

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• Our developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the AMEA region.

• “Adjusted Operating Income” is defined as operating income excluding the impacts of the Simplify to Grow Program (4) ;

• “Adjusted Operating Income” is defined as operating income (the most comparable U.S.

GAAP financial measure) excluding the impacts of the Simplify to Grow Program (4) ;

gains or losses (including non-cash impairment charges) on goodwill and intangible assets;

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impact from the European Commission legal matter (13) ;

impact from pension participation changes (14) ;

and costs associated with the JDE Peet's transaction.

and impact from pension participation changes (14) .

We also present “Adjusted Operating Income margin,” which is subject to the same adjustments as Adjusted Operating Income.

We also evaluate growth in our Adjusted Operating Income on a constant currency basis (3) .

• “Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International from continuing operations excluding the impacts of the items listed in the Adjusted Operating Income definition as well as losses on debt extinguishment and related expenses;

We believe these measures provide improved comparability of underlying operating results.

• “Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International (the most comparable U.S.

GAAP financial measure) from continuing operations excluding the impacts of the items listed in the Adjusted Operating Income definition as well as losses on debt extinguishment and related expenses;

gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans;

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We also evaluate growth in our Adjusted EPS on a constant currency basis (3) .

We believe Adjusted EPS provides improved comparability of underlying operating results.

(1) When items no longer impact our current or future presentation of non-GAAP operating results, we remove these items from our non-GAAP definitions.

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(9) In connection with our applying highly inflationary accounting (refer to Note 1, Basis of Presentation ) for Argentina (beginning in the third quarter of 2018) and Türkiye (beginning in the second quarter of 2022), we exclude the related remeasurement gains or losses related to remeasuring net monetary assets or liabilities denominated in the local currency to the U.S.

dollar during the

periods presented to be consistent with our prior accounting for these remeasurement gains/losses for Venezuela when it was subject to highly inflationary accounting prior to deconsolidation in 2015.

dollar during the periods presented.

(10) We exclude unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency and equity method investment transaction derivative contracts from our non-GAAP earnings measures.

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(11) Refer to Note 12, Commitments and Contingencies – Tax Matters , in this report, and Note 14, Commitments and Contingencies –Tax Matters , in our Annual Report on Form 10-K for the year ended December 31, 2022.

(12) In February 2022, Russia began a military invasion of Ukraine and we stopped our production and closed our facilities in Ukraine.

(12) In February 2022, Russia began a military invasion of Ukraine and we stopped our production and closed our facilities in Ukraine for a period of time due to damage incurred to our facilities during the invasion.

We began to incur incremental costs directly related to the war including asset impairments, such as property and inventory losses, higher expected allowances for uncollectible accounts receivable and committed compensation.

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GAAP financial measures and the reconciliations to the corresponding U.S.

GAAP financial measures, provides you with a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures.

GAAP financial measures, provides a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures.

Because non-GAAP financial measures vary among companies, the non-GAAP financial measures presented in this report may not be comparable to similarly titled measures used by other companies.

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GAAP financial measures.

A limitation of these non-GAAP financial measures is they exclude items detailed below that have an impact on our U.S.

A limitation of these non-GAAP financial measures is they exclude items that have an impact on our U.S.

GAAP reported results.

The best way this limitation can be addressed is by evaluating our non-GAAP financial measures in combination with our U.S.

GAAP reported results and carefully evaluating the following tables that reconcile U.S.

GAAP reported figures to the non-GAAP financial measures in this Form 10-Q.

Organic Net Revenue

Applying the definition of “Organic Net Revenue,” the adjustments made to “net revenues” (the most comparable U.S.

GAAP financial measure) were to exclude the impact of currency, acquisitions and divestitures.

We believe that Organic Net Revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results.

We also evaluate our Organic Net Revenue growth from emerging markets and developed markets, and these underlying measures are also reconciled to U.S.

For the Three Months Ended March 31, 2023 For the Three Months Ended March 31, 2022

Markets Developed

Markets Total Emerging

Markets Developed

Markets Total

(in millions) (in millions)

Net Revenues $ 3,598 $ 5,568 $ 9,166 $ 2,964 $ 4,800 $ 7,764

Impact of currency 258 207 465 — — —

Impact of acquisitions (156) (218) (374) — — —

Impact of divestitures — — — (9) — (9)

Organic Net Revenue $ 3,700 $ 5,557 $ 9,257 $ 2,955 $ 4,800 $ 7,755

Adjusted Operating Income

Applying the definition of “Adjusted Operating Income,” the adjustments made to “operating income” (the most comparable U.S.

GAAP financial measure) were to exclude the impacts of the Simplify to Grow Program;

intangible asset impairment charges;

mark-to-market impacts from commodity, forecasted currency and equity method investment transaction derivative contracts;

acquisition integration costs and contingent consideration adjustments;

acquisition-related costs;

divestiture-related costs;

operating income from divestitures;

incremental costs due to the war in Ukraine;

and the remeasurement of net monetary position.

We also evaluate Adjusted Operating Income on a constant currency basis.

We believe these measures provide improved comparability of underlying operating results.

For the Three Months Ended

2023 2022 $ Change % Change

(in millions)

Operating Income $ 1,505 $ 1,094 $ 411 37.6 %

Simplify to Grow Program (1)

Intangible asset impairment charge (2)

Mark-to-market gains from derivatives (3)

(49) (27) (22)

Acquisition integration costs and

contingent consideration adjustments (4)

Acquisition-related costs (4)

Divestiture-related costs (4)

Operating income from divestitures (4)

Incremental costs due to war in Ukraine (5)

(3) 143 (146)

Remeasurement of net monetary position (5)

Adjusted Operating Income $ 1,581 $ 1,377 $ 204 14.8 %

Unfavorable currency translation 81 — 81

Adjusted Operating Income (constant currency) $ 1,662 $ 1,377 $ 285 20.7 %

(1) Refer to Note 7, Restructuring Program, for more information.

(2) Refer to Note 5, Goodwill and Intangible Assets , for more information.

(3) Refer to Note 9, Financial Instruments , Note 16, Segment Reporting , and the Non-GAAP Financial Measures section for more information on the unrealized gains/losses on commodity, forecasted currency and equity method investment transaction derivatives.

(4) Refer to Note 2, Acquisitions and Divestitures , for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and the January 3, 2022 acquisition of Chipita.

(5) Refer to Note 1, Basis of Presentation, for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

Applying the definition of “Adjusted EPS,” (1) the adjustments made to “diluted EPS attributable to Mondelēz International” (the most comparable U.S.

GAAP financial measure) were to exclude the impacts of the items listed in the Adjusted Operating Income tables above as well as net earnings from divestitures;

losses on debt extinguishment and related expenses;

gains or losses on marketable securities;

gains or losses on equity method investment transactions;

and our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee.

We also evaluate Adjusted EPS on a constant currency basis.

We believe Adjusted EPS provides improved comparability of underlying operating results.

For the Three Months Ended

2023 2022 $ Change % Change

Diluted EPS attributable to Mondelēz International $ 1.52 $ 0.61 $ 0.91 149.2 %

Simplify to Grow Program (2)

Intangible asset impairment charge (2)

— 0.04 (0.04)

Mark-to-market gains from derivatives (2)

(0.03) (0.02) (0.01)

Acquisition integration costs and

contingent consideration adjustments (2)

0.03 (0.01) 0.04

Acquisition-related costs (2)

— 0.02 (0.02)

Divestiture-related costs (2)

Net earnings from divestitures (2)

(0.02) (0.03) 0.01

Incremental costs due to war in Ukraine (2)

— 0.11 (0.11)

Remeasurement of net monetary position (2)

Loss on debt extinguishment and related expenses (3)

— 0.07 (0.07)

Gain on marketable securities (4)

(0.43) — (0.43)

Gain on equity method investment transactions (4)

(0.26) — (0.26)

Equity method investee items (5)

Adjusted EPS $ 0.89 $ 0.81 $ 0.08 9.9 %

Unfavorable currency translation 0.06 — 0.06

Adjusted EPS (constant currency) $ 0.95 $ 0.81 $ 0.14 17.3 %

(1) The tax expense/(benefit) of each of the pre-tax items excluded from our U.S.

GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS.

• For the three months ended March 31, 2023, taxes for the:

Simplify to Grow Program were $(6) million, mark-to-market gains from derivatives were $8 million, acquisition integration costs and contingent consideration adjustments were $(13) million, divestiture-related costs were $(4) million, net earnings from divestitures were $4 million, remeasurement of net monetary position were zero, gain on marketable securities were $201 million and gain on equity method investment transactions were $125 million.

• For the three months ended March 31, 2022, taxes for the:

Simplify to Grow Program were $(7) million, intangible asset impairment charges were $(19) million, mark-to-market gains from derivatives were $(5) million, acquisition integration costs and contingent consideration adjustments were $(50) million, acquisition-related costs were $(1) million, net earnings from divestitures were $10 million, incremental costs due to the war in Ukraine were $2 million and loss on debt extinguishment and related expenses were $(31) million.

(2) See the Adjusted Operating Income table above and the related footnotes for more information.

(3) Refer to Note 8, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses

(4) Refer to Note 6, Investments, for more information on the gains and losses on equity method investment transactions and marketable securities.

(5) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee, such as acquisition and divestiture-related costs and restructuring program costs..

GAAP reported results and carefully evaluating the tables that reconcile U.S.

GAAP reported figures to the non-GAAP financial measures in this Form 10-Q, which can be found above under Consolidated Results of Operations .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis