What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-04-30 compared with 2023-11-01 · 229 added, 488 removed, 385 unchanged (65% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Description of the Company

Overview of Business and Strategy

Our core business is making and selling chocolate, biscuits and baked snacks, with additional businesses in adjacent, locally relevant categories including gum & candy, cheese & grocery and powdered beverages around the world.

5 unchanged sentences

Macroeconomic environment

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.

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

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

In particular, we expect to face higher cocoa costs, as the market price for cocoa beans has increased significantly year-over-year and it is likely that prices will remain elevated for some time.

Refer to Commodity Trends for additional information.

Our overall outlook for future snacks revenue growth remains strong;

4 unchanged sentences

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.

since then we have taken steps to protect the safety of our employees and to restore operations 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.

2 unchanged sentences

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 third quarter of 2023, Ukraine generated 0.4% and Russia generated 2.7% of consolidated net revenue and during the third quarter of 2022, Ukraine generated 0.3% and Russia generated 4.6% of consolidated net revenue.

Our Russian net revenues declined in the third quarter of 2023 due to the suspension of advertising as well as currency weakness.

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

We continue to reduce our activities in Russia and expect 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.

During the first quarter of 2024, Ukraine generated 0.4% and Russia generated 2.6% 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 net revenues declined in the first quarter of 2024 due to the suspension of advertising as well as currency weakness.

Despite the decrease in revenues, the profitability of our Russian business in the first quarter of 2024 remained above historical levels.

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

During 2022, we completed the following acquisitions to strategically complement and expand our existing portfolio:

• Ricolino, a confectionery business with products sold primarily in Mexico

• Clif Bar & Company (“Clif Bar”), a leading U.S.

maker of nutritious energy bars with organic ingredients

• Chipita Global S.A.

("Chipita"), a high-growth leader in the Central and Eastern European croissant and baked snacks category

Additionally in 2022, we announced our intention to divest our developed market gum and global Halls candy businesses and in the fourth quarter of 2022, we announced an agreement to sell the developed market gum business.

For additional information, see the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2023, including the risk entitled “ The war in Ukraine has impacted and could continue to impact our business operations, financial performance and results of operations.

Developments in the Middle East

In October 2023, conflict developed in the Middle East between Hamas and Israel, and has expanded to some parts of the region.

In the first quarter of 2024, we experienced sales impacts related to this conflict in certain AMEA markets, but this did not have a material impact on our business, results of operations or financial condition.

We continue to evaluate the impacts of these developments on our business and we cannot predict if it will have a significant impact in the future.

Extreme price growth in Argentina

During December 2023, the Argentinean peso significantly devalued.

The peso's devaluation and potential resulting distortion on our non-GAAP Organic Net Revenue, Organic Net Revenue growth and other constant currency growth rate measures resulted in our decision to exclude the impact of pricing in excess of 26% year-over-year ("extreme pricing") in Argentina, from these measures beginning in Q1 2024.

The benchmark of 26% represents the minimum annual inflation rate for each year over a 3-year period which would result in a cumulative inflation rate in excess of 100%, the level at which an economy is considered hyperinflationary under U.S.

Throughout the following MD&A discussion, we now exclude, on a prospective basis, the impact of extreme pricing in Argentina from the net pricing impact of Organic Net Revenue and Organic Net Revenue growth and its related impact on our other non-GAAP financial constant currency growth measures with a corresponding adjustment in changes in currency translation rates.

Additionally within the MD&A discussion, "currency-related items" totals the impact of extreme pricing and the currency translation rate changes.

Currency-related items impacted our non-GAAP financial measures for the three months ended March 31, 2024 as follows:

• Organic Net Revenue:

In total, unfavorable currency-related items of $132 million (1.5pp) were driven by unfavorable currency translation rate changes of $513 million (5.7pp), partially offset by the adjustment for extreme pricing of $381 million (4.2pp).

In Emerging Markets, unfavorable currency-related items of $166 million (4.6pp) were driven by unfavorable currency translation rate changes of $547 million (15.2pp), partially offset by the adjustment for extreme pricing of $381 million (10.6pp).

In Developed Markets, favorable currency-related items of $34 million (0.7pp) were driven by favorable currency translation rate changes.

• Adjusted Operating Income:

Unfavorable currency-related items of $70 million were driven by unfavorable currency translation rate changes of $190 million, partially offset by the adjustment for extreme pricing of $120 million.

• Adjusted EPS:

Unfavorable currency-related items of $0.05 were driven by unfavorable currency translation rate changes of $0.13, partially offset by the adjustment for extreme pricing of $0.08.

Please refer to Non-GAAP financial measures for additional information.

In 2022, we announced our intention to divest our developed market gum and global Halls candy businesses and in the fourth quarter of 2022, we announced an agreement to sell the developed market gum business.

On October 1, 2023, we completed the sale of our developed market gum business to Perfetti Van Melle Group, excluding the Portugal business which we retained pending regulatory approval.

We completed the sale of the Portugal business to Perfetti Van Melle Group on October 23, 2023.

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

Refer to Note 2, Divestitures , for additional details.

Investment Transactions

Keurig Dr Pepper Transactions

Keurig Dr Pepper Transactions (Nasdaq:

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

1 unchanged sentence

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 percentage points, 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 September 30, 2023.

On March 30, 2023, we issued options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares, exercisable at maturity during the third quarter of 2023.

During the three months ended September 30, 2023, options were exercised on 2.2 million shares, which reduced our ownership by 0.4 percentage point, from 18.1% to 17.7% of the total outstanding shares.

We received cash proceeds of €57 million ($62 million) and recorded a loss of €3 million ($4 million) for these sales during the three months ended September 30, 2023.

Subsequently in 2023, we sold the remainder of our shares

of KDP and exited our investment in the company.

JDE Peet’s Transactions (Euronext Amsterdam:

During the three months ended March 31, 2024, we determined there was an other-than-temporary impairment of our investment in JDEP, resulting in an impairment charge of €612 million ($665 million).

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

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 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 three and nine months ended September 30, 2023.

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

On August 16, 2022, the U.S.

enacted the Inflation Reduction Act of 2022, which is effective for tax years beginning after December 31, 2022.

As of March 31, 2024, numerous countries have now enacted the Organization of Economic Cooperation and Development’s model rules on a global minimum tax with the earliest effective date being for taxable years beginning after December 31, 2023.

Based on the guidance available thus far, we do not expect this legislation to have a material impact on our consolidated financial statements but 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 three countries have enacted it as of September 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.

Financial Outlook

8 unchanged sentences

GAAP results.

We have provided reconciliations between our GAAP and non-GAAP financial measures in Non-GAAP Financial Measures , which appears later in this section.

Refer to Non-GAAP Financial Measures for the definitions of our non-GAAP financial measures and Consolidated Results of Operations for the respective reconciliations.

In addition to monitoring our key operating metrics, we monitor developments and trends that could impact our revenue and profitability objectives, as highlighted in our most recently filed Annual Report on Form 10-K for the year ended December 31, 2023.

Summary of Results

• Net revenues increased 16.3% to $9.0 billion in the third quarter of 2023 and increased 17.1% to $26.7 billion in the first nine months of 2023 as compared to the same periods in the prior year.

In the third quarter and first nine 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.

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

– Net revenue growth in the first nine 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, partially offset by unfavorable currency translation and the impact of divestitures in 2022.

• Organic Net Revenue, a non-GAAP financial measure, increased 15.7% to $9.0 billion in the third quarter of 2023 and increased 17.0% to $26.6 billion in the first nine months of 2023 as compared to same periods in the prior year.

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

• Net revenues increased 1.4% to $9.3 billion in the first quarter of 2024 as compared to the same period in the prior year.

Net revenue growth in the first quarter of 2024 was driven by higher net pricing and incremental net revenue from a short-term distributor agreement related to the sale of our developed market gum business, partially offset by unfavorable volume/mix, the impact of our 2023 divestiture of the developed market gum business and unfavorable currency-related items, as the U.S.

dollar strengthened relative to most currencies we operate in compared to exchange rates in the prior year.

• Organic Net Revenue, a non-GAAP financial measure, increased 4.2% to $9.4 billion in the first quarter of 2024 as compared to same period in the prior year.

During the first quarter of 2024, Organic Net Revenue grew due to higher net pricing, partially offset by unfavorable volume/mix.

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

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 84.6% to $0.72 in the third quarter of 2023 and increased 89.6% to $2.92 in the first nine months of 2023 as compared to the same period in the prior year.

– Diluted EPS increased in the third quarter of 2023, driven by lapping prior-year acquisition-related costs, an increase in Adjusted EPS, favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, a gain on marketable securities and lapping prior-year inventory step-up charges.

These favorable items were partially offset by higher equity method investee items, higher acquisition integration costs and contingent consideration adjustments, higher intangible asset impairment charges, lapping prior-year net earnings from divestitures and higher remeasurement loss of net monetary position.

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

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

• Adjusted EPS, a non-GAAP financial measure, increased 13.9% to $0.82 in the third quarter of 2023 and increased 13.4% to $2.46 in the first nine months of 2023 as compared to the same periods in the prior year.

On a constant currency basis, Adjusted EPS increased 16.7% to $0.84 in the third quarter of 2023 and increased 18.9% to $2.58 in the first nine months of 2023 as compared to the same periods in the prior year.

• Diluted EPS attributable to Mondelēz International decreased (31.6)% to $1.04 in the first quarter of 2024 as compared to the same period in the prior year.

Diluted EPS decreased in the first quarter of 2024, driven by an impairment charge on our JDEP equity method investment in 2024, lapping prior-year gains on marketable securities and equity method investment transactions related to our former KDP investment, lapping prior-year operating results from the developed market gum business divested in 2023 and higher costs incurred from our Simplify to Grow program.

These unfavorable items were partially offset by a favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, an increase in Adjusted EPS, lower divestiture-related costs, lower acquisition integration costs and contingent consideration adjustments and lower equity method investee items.

• Adjusted EPS, a non-GAAP financial measure, increased 10.5% to $0.95 in the first quarter of 2024 as compared to the same period in the prior year.

On a constant currency basis, Adjusted EPS increased 16.3% to $1.00 in the first quarter of 2024 as compared to the same period in the prior year.

Adjusted EPS increased in the first quarter of 2024, driven by operating gains, lower interest expense and fewer shares outstanding, partially offset by unfavorable currency-related items and higher taxes.

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

– Adjusted EPS increased in the first nine 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 taxes, lower benefit plan non-service income and lower equity method investment net earnings.

Discussion and Analysis of Historical Results

1 unchanged sentence

The following table includes significant income or (expense) items that affected the comparability of our results of operations and our effective tax rates.

Please refer to the notes to the condensed consolidated financial statements indicated below for more information.

Please refer to the notes to the condensed consolidated financial statements indicated below for additional information.

Refer also to the Consolidated Results of Operations – Net Earnings and Earnings per Share Attributable to Mondelēz International table for the after-tax per share impacts of these items.

For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

See Note 2024 2023

3 unchanged sentences

Implementation charges (11) (5)

Intangible asset impairment charges Note 5 (26) (23) (26) (101)

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

Mark-to-market gains from derivatives (1)

Note 9 1,124 48

2 unchanged sentences

contingent consideration adjustments (1)

(68) (28) (143) (100)

Inventory step-up — (20) — (20)

Acquisition-related costs — (292) — (318)

Divestiture-related costs (4) (30)

Incremental costs due to war in Ukraine (2)

Note 1 (1) 7 2 (121)

Remeasurement of net monetary position Note 1 (8) (12)

1 unchanged sentence

Note 10 (2) (3)

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

Initial impacts from enacted tax law changes Note 14 (13) (13) (15) (22)

Gain on marketable securities

Note 6 — — 593 —

(Loss)/gain on equity method investment

transactions (3)

— (3) 462 (16)

(Loss)/gain on equity method investment transactions including impairments (3)

Equity method investee items (4)

(38) 13 (82) 7

Effective tax rate Note 14 23.6 % 29.6 %

(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 (loss)/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 (including non-cash impairment charges) 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) (Loss)/gain on equity method investment transactions is recorded outside pre-tax operating results on the condensed consolidated statement of earnings.

(3) (Loss)/gain (including non-cash impairment charges) 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.

1 unchanged sentence

Consolidated Results of Operations

Three Months Ended September 30

Three Months Ended March 31

For the Three Months Ended

September 30,

2024 2023 $ Change

8 unchanged sentences

1.04 1.52 (0.48) (31.6) %

Net Revenues – Net revenues increased $1,266 million (16.3%) to $9,029 million in the third quarter of 2023, and Organic Net Revenue (1) increased $1,215 million (15.7%) to $8,977 million.

Net Revenues – Net revenues increased $124 million (1.4%) to $9,290 million in the first quarter of 2024, and Organic Net Revenue (1) increased $378 million (4.2%) to $9,397 million.

Emerging markets net revenues increased 3.8% and emerging markets Organic Net Revenue increased 8.3% (1) .

Developed markets net revenues increased 17.8% and developed markets Organic Net Revenue increased 13.4% (1) .

Developed markets net revenues decreased (0.2)% and developed markets Organic Net Revenue increased 1.4% (1) .

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

2 unchanged sentences

International

Three Months Ended September 30, 2023

Three Months Ended March 31, 2024

Reported (GAAP) $ 3,733 $ 5,557 $ 9,290

Acquisitions (153) (71) (224)

Currency 308 (136) 172

Short-term distributor agreements

(3) (22) (25)

Currency-related items

Organic (Non-GAAP) $ 3,896 $ 5,501 $ 9,397

Three Months Ended September 30, 2022

Three Months Ended March 31, 2023

Reported (GAAP) $ 3,598 $ 5,568 $ 9,166

3 unchanged sentences

Divestitures — pp 2.7 pp 1.6 pp

Acquisitions (5.0) (1.5) (2.8) pp

Currency 10.0 (2.9) 2.2 pp

Short-term distributor agreements

(0.1) (0.4) (0.3) pp

Currency-related items

4.6 (0.7) 1.5 pp

Organic (Non-GAAP) 8.3 % 1.4 % 4.2 %

2 unchanged sentences

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

Net revenue increase of 16.3% was driven by our underlying Organic Net Revenue growth of 15.7% and the impact of acquisitions, partially offset by unfavorable currency translation.

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 nine months of 2023.

Volume/mix was favorable across all regions reflecting both improved product mix and volume gains.

The November 1, 2022 acquisition of Ricolino added incremental net revenues of $153 million (constant currency basis).

The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $71 million through the one-year anniversary of the acquisition.

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

Unfavorable currency impacts decreased net revenues by $172 million, primarily due to the strength of the U.S.

dollar relative to several currencies, including the Argentinean peso, Russian ruble, Egyptian pound, Nigerian naira, Turkish lira, Chinese yuan, Indian rupee and Australian dollar, partially offset by the strength of several currencies relative to the U.S.

dollar, primarily the euro, British pound sterling, Mexican peso and Brazilian real.

Operating Income – Operating income increased $700 million (103.1%) to $1,379 million in the third quarter of 2023.

Net revenue increase of 1.4% was driven by our underlying Organic Net Revenue growth of 4.2% and the impact of a short-term distributor agreement, partially offset by the impact of our 2023 divestiture of the developed market gum business and unfavorable currency-related items.

Organic Net Revenue growth was driven by higher net pricing, partially offset by unfavorable volume/mix.

Higher net pricing in all regions was due to the benefit of carryover pricing from 2023 as well as the effects of input cost-driven pricing actions taken during the first three months of 2024.

Overall, unfavorable volume/mix was driven by volume declines, due to expected customer price negotiation disruptions in Europe, softer consumer demand in the U.S.

and geopolitical impacts in parts of AMEA, which were partially offset by favorable product mix.

Unfavorable volume/mix was reflected across all regions.

The short-term distributor agreement related to the October 1, 2023 sale of our developed market gum business added incremental net revenues of $25 million.

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $147 million.

Refer to Note 2, Divestitures, for additional information.

Currency-related items decreased net revenues by $132 million, driven by unfavorable currency translation rate changes, partially offset by the adjustment for extreme pricing in Argentina.

Refer to Recent Developments and Significant Items Affecting Comparability for additional information.

Unfavorable currency translation rate changes were due to the strength of the U.S.

dollar relative to several currencies, primarily the

Argentinean peso, as well as the Russian ruble, Turkish lira, Nigerian naira, Chinese yuan and Australian dollar, partially offset by the strength of several currencies relative to the U.S.

dollar, including the Mexican peso, British pound sterling, Brazilian real, euro and Polish zloty.

Operating Income – Operating income increased $1,222 million (81.2%) to $2,727 million in the first quarter of 2024.

Adjusted Operating Income (1) increased $186 million (12.2%) to $1,710 million and Adjusted Operating Income on a constant currency basis (1) increased $256 million (16.8%) to $1,780 million due to the following:

For the Three Months Ended

September 30,

2024 2023 $ Change % Change

2 unchanged sentences

Simplify to Grow Program (2)

Intangible asset impairment charge (3)

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

Mark-to-market gains from derivatives (3)

(1,124) (49) (1,075)

1 unchanged sentence

contingent consideration adjustments (4)

Inventory step-up (5)

Acquisition-related costs (5)

Divestiture-related costs (4)

Operating results from divestitures (4)

Operating results from short-term distributor agreements (1)

Incremental costs due to war in Ukraine (5)

2 unchanged sentences

$ 1,710 $ 1,524 $ 186 12.2 %

Unfavorable currency translation 49 — 49

Currency-related items

Adjusted Operating Income (constant currency) (1)

3 unchanged sentences

Higher input costs (130)

Favorable volume/mix 155

Unfavorable volume/mix (53)

Higher selling, general and administrative expenses (138)

Impact from acquisitions (4)

Lower amortization of intangible assets 2

Higher asset impairment charges 10

1 unchanged sentence

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

(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.

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

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

(4) Refer to Note 2, Divestitures , for additional information on the October 1, 2023 sale of the developed market gum business.

Refer to Note 2, Acquisitions and Divestitures in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional information on our 2022 acquisitions.

(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.

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

During the third 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 nine 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 reflected across all regions.

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 unfavorable year-over-year currency exchange transaction costs on imported materials as well as higher sugar, energy and other ingredient costs, partially offset by lower dairy, edible oils, nuts, packaging and grains costs.

Total selling, general and administrative expenses increased $135 million from the third quarter of 2022, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher acquisition integration costs and contingent consideration adjustments, higher remeasurement loss of net monetary position, higher divestiture-related costs 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 lapping prior-year acquisition-related costs, a favorable currency impact related to expenses and lower implementation costs incurred for the Simplify to Grow program.

Excluding these factors, selling, general and administrative expenses increased $268 million from the third quarter of 2022.

During the first quarter of 2024, we realized higher net pricing, which was partially offset by increased input costs and unfavorable volume/mix.

Higher net pricing, which included the carryover impact of pricing actions taken in 2023 as well as the effects of input cost-driven pricing actions taken during the first three months of 2024, was reflected across all regions.

The increase in input costs was driven by higher raw material costs net of realized gains from our forward purchasing and hedging contracts, partially offset by lower manufacturing costs driven by productivity.

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

Overall, volume/mix was due to volume declines partially offset by favorable product mix.

Unfavorable volume/mix was driven by Europe, North America and Latin America, which was marginally offset by slightly favorable volume/mix in AMEA.

Total selling, general and administrative expenses increased $83 million from the first quarter of 2023, which reflected benefits from a number of factors noted in the table above, including in part, lower divestiture-related costs, the elimination of costs from the developed market gum business divested in 2023, lower acquisition integration costs and contingent consideration adjustments and lower remeasurement loss of net monetary position, marginally offset by higher implementation costs incurred for the Simplify to Grow program.

Excluding these factors, selling, general and administrative expenses increased $138 million from the first quarter of 2023.

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 $49 million due primarily to the strength of the U.S.

dollar relative to several currencies, including the Russian ruble, Egyptian pound, Turkish lira, Chinese yuan, Nigerian naira, Indian rupee, Argentinean peso and Australian dollar, partially offset by the strength of several currencies relative to the U.S.

dollar, including the euro, British pound sterling, Mexican peso and Brazilian real.

Operating income margin increased from 8.7% in the third quarter of 2022 to 15.3% in the third quarter of 2023.

The increase was primarily driven by lapping prior-year acquisition-related costs, favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, higher Adjusted Operating Income margin and lapping prior-year inventory step-up charges, partially offset by higher acquisition integration costs and contingent consideration adjustments, higher divestiture-related costs and lapping prior-year decrease in estimated allowances and reserves associated with incremental costs incurred due to the war in Ukraine.

Adjusted Operating Income margin increased from 16.1% for the third quarter of 2022 to 16.7% for the third quarter of 2023.

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

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $984 million increased by $452 million (85.0%) in the third quarter of 2023.

Diluted EPS attributable to Mondelēz International was $0.72 in the third quarter of 2023, up $0.33 (84.6%) from the third quarter of 2022.

Adjusted EPS (1) was $0.82 in the third quarter of 2023, up $0.10 (13.9%) from the third quarter of 2022.

Adjusted EPS on a constant currency basis (1) was $0.84 in the third quarter of 2023, up $0.12 (16.7%) from the third quarter of 2022.

Unfavorable currency-related items decreased operating income by $70 million primarily due to the strength of the U.S.

dollar relative to most currencies, including the Argentinean peso, Russian ruble, Turkish lira, Chinese yuan, Australian dollar, Nigerian naira and Egyptian pound, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the British pound sterling, Mexican peso, Brazilian real, euro and Polish zloty.

Operating income margin increased from 16.4% in the first quarter of 2023 to 29.4% in the first quarter of 2024.

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, higher Adjusted Operating Income margin, lower divestiture-related costs and lower remeasurement loss of net monetary position, partially offset by the impact from the developed market gum business divested in 2023 and higher costs incurred for the Simplify to Grow program.

Adjusted Operating Income margin increased from 16.9% for the first quarter of 2023 to 18.5% for the first quarter of 2024.

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

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $1,412 million decreased by $669 million (32.1%) in the first quarter of 2024.

Diluted EPS attributable to Mondelēz International was $1.04 in the first quarter of 2024, down $0.48 (31.6%) from the first quarter of 2023.

Adjusted EPS (1) was $0.95 in the first quarter of 2024, up $0.09 (10.5%) from the first quarter of 2023.

Adjusted EPS on a constant currency basis (1) was $1.00 in the first quarter of 2024, up $0.14 (16.3%) from the first quarter of 2023.

For the Three Months Ended

September 30,

2024 2023 $ Change % Change

1 unchanged sentence

Simplify to Grow Program (2)

Intangible asset impairment charge (2)

0.03 0.02 0.01

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

(0.01) 0.07 (0.08)

Acquisition integration costs and

contingent consideration adjustments (2)

0.04 0.02 0.02

Inventory step-up (2)

— 0.01 (0.01)

Acquisition-related costs (2)

— 0.21 (0.21)

Net earnings from divestitures (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)

Gain on marketable securities (4)

(0.02) — (0.02)

Equity method investee items (5)

0.03 (0.01) 0.04

Adjusted EPS (1)

$ 0.82 $ 0.72 $ 0.10 13.9 %

Unfavorable currency translation 0.02 — 0.02

Adjusted EPS (constant currency) (1)

$ 0.84 $ 0.72 $ 0.12 16.7 %

Key Drivers of Adjusted EPS (constant currency) $ Change

Increase in operations $ 0.16

Impact from acquisitions (2)

Change in benefit plan non-service income (0.01)

Change in interest and other expense, net (6)

Change in equity method investment net earnings (0.01)

Change in income taxes (3)

Change in shares outstanding (7)

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 September 30, 2023, taxes for the:

Simplify to Grow Program were $(2) million, intangible asset impairment charges were $(6) million, mark-to-market gains from derivatives were $9 million, acquisition integration costs and contingent consideration adjustments were $(17) million, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $13 million, gain on marketable securities were $(21) million and equity method investee items were zero.

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

Simplify to Grow Program were $(3) million, intangible asset impairment charges were $(6) million, mark-to-market losses from derivatives were $(22) million, acquisition integration costs and contingent consideration adjustments were $(6) million, inventory step-up charges were $(5) million, acquisition-related costs were zero, net earnings from divestitures were $2 million, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $13 million and equity method investee items 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) 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.

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

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

(7) 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.

Nine Months Ended September 30:

For the Nine Months Ended

September 30,

2023 2022 $ Change

(in millions, except per share data)

Net revenues $ 26,702 $ 22,801 $ 3,901 17.1 %

Operating income 4,309 2,700 1,609 59.6 %

Net earnings attributable to

Mondelēz International

4,009 2,134 1,875 87.9 %

Diluted earnings per share attributable to

Mondelēz International

2.92 1.54 1.38 89.6 %

Net Revenues – Net revenues increased $3,901 million (17.1%) to $26,702 million in the first nine months of 2023, and Organic Net Revenue (1) increased $3,868 million (17.0%) to $26,647 million.

Emerging markets net revenues increased 17.7% and emerging markets Organic Net Revenue increased 22.5% (1) .

Developed markets net revenues increased 16.7% and developed markets Organic Net Revenue increased 13.5% (1) .

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

Markets Developed

Markets Mondelēz

International

Nine Months Ended September 30, 2023

Reported (GAAP) $ 10,431 $ 16,271 $ 26,702

Acquisitions (446) (529) (975)

Currency 843 77 920

Organic (Non-GAAP) $ 10,828 $ 15,819 $ 26,647

Nine Months Ended September 30, 2022

Reported (GAAP) $ 8,864 $ 13,937 $ 22,801

Divestitures (22) — (22)

Organic (Non-GAAP) $ 8,842 $ 13,937 $ 22,779

Reported (GAAP) 17.7 % 16.7 % 17.1 %

Divestitures 0.3 pp - pp 0.1 pp

Acquisitions (5.0) (3.8) (4.3)

Currency 9.5 0.6 4.1

Organic (Non-GAAP) 22.5 % 13.5 % 17.0 %

Vol/Mix 3.4 pp 1.7 pp 2.4 pp

Pricing 19.1 11.8 14.6

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

Net revenue increase of 17.1% was driven by our underlying Organic Net Revenue growth of 17.0% 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 nine months of 2023.

Favorable volume/mix was driven by AMEA, North America and Latin America reflecting both improved product mix and volume gains, while volume/mix was flat in Europe.

The November 1, 2022 acquisition of Ricolino added incremental net revenues of $446 million (constant currency basis).

The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $529 million through the one-year anniversary of the acquisition.

Unfavorable currency impacts decreased net revenues by $920 million, due primarily to the strength of the U.S.

dollar relative to several currencies, including the Argentinean peso, Russian ruble, Egyptian pound, Indian rupee, Turkish lira, Chinese yuan, Australian dollar, South African rand, Nigerian naira, British pound sterling and Pakistan rupee, partially offset by the strength of several currencies relative to the U.S.

dollar, including the Mexican peso, euro, Brazilian real and Polish zloty.

The impact of our 2022 divestitures resulted in a year-over-year reduction in net revenues of $22 million.

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

Operating Income – Operating income increased $1,609 million (59.6%) to $4,309 million in the first nine months of 2023.

Adjusted Operating Income (1) increased $697 million (18.7%) to $4,424 million and Adjusted Operating Income on a constant currency basis (1) increased $880 million (23.6%) to $4,607 million due to the following:

For the Nine Months Ended

September 30,

2023 2022 $ Change % Change

(in millions)

Operating Income $ 4,309 $ 2,700 $ 1,609 59.6 %

Simplify to Grow Program (2)

Intangible asset impairment charge (3)

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

(239) 268 (507)

Acquisition integration costs and

contingent consideration adjustments (5)

Inventory step-up (5)

Acquisition-related costs (5)

Divestiture-related costs (5) (7)

Operating income from divestitures (5)

Incremental costs due to war in Ukraine (6)

(2) 121 (123)

Remeasurement of net monetary position (6)

Adjusted Operating Income (1)

$ 4,424 $ 3,727 $ 697 18.7 %

Unfavorable currency translation 183 — 183

Adjusted Operating Income (constant currency) (1)

$ 4,607 $ 3,727 $ 880 23.6 %

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

Higher net pricing 3,327

Higher input costs (2,195)

Favorable volume/mix 264

Higher selling, general and administrative expenses (575)

Impact from acquisitions (5)

Lower amortization of intangible assets 3

Higher asset impairment charges $ (52)

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 , 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 include costs incurred associated with our publicly announced processes to divest our developed markets gum and global Halls businesses.

During the first nine 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 reflected across all regions.

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, edible oils, 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 $490 million from the first nine 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, higher remeasurement loss of net monetary position and higher acquisition integration costs and contingent consideration adjustments, which were partially offset by lapping prior-year acquisition-related costs, a favorable currency impact related to expenses, lower implementation costs incurred for the Simplify to Grow program and lapping prior-year incremental costs due to the war in Ukraine.

Excluding these factors, selling, general and administrative expenses increased $575 million from the first nine 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 $183 million primarily due to the strength of the U.S.

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

dollar, primarily the Mexican peso and euro.

Operating income margin increased from 11.8% in the first nine months of 2022 to 16.1% in the first nine 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 acquisition-related costs, lapping prior-year incremental costs due to the war in Ukraine, lower intangible asset impairment charges, higher Adjusted Operating Income margin, lower costs incurred for the Simplify to Grow program and lapping prior-year inventory step-up charges, partially offset by higher acquisition integration costs and contingent consideration adjustments, higher divestiture-related costs and higher remeasurement loss of net monetary position.

Adjusted Operating Income margin increased from 16.4% for the first nine months of 2022 to 16.6% for the first nine months of 2023.

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

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $4,009 million increased by $1,875 million (87.9%) in the first nine months of 2023 .

Diluted EPS attributable to Mondelēz International was $2.92 in the first nine months of 2023, up $1.38 (89.6%) from the first nine months of 2022.

Adjusted EPS (1) was $2.46 in the first nine months of 2023, up $0.29 (13.4%) from the first nine months of 2022.

Adjusted EPS on a constant currency basis (1) was $2.58 in the first nine months of 2023, up $0.41 (18.9%) from the first nine months of 2022.

For the Nine Months Ended

September 30,

2023 2022 $ Change % Change

Diluted EPS attributable to Mondelēz International $ 2.92 $ 1.54 $ 1.38 89.6 %

Simplify to Grow Program (2)

Intangible asset impairment charge (2)

0.02 0.05 (0.03)

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

Mark-to-market gains from derivatives (2)

(0.66) (0.03) (0.63)

2 unchanged sentences

0.02 0.03 (0.01)

Inventory step-up — 0.01 (0.01)

Acquisition-related costs (2)

— 0.23 (0.23)

Divestiture-related costs (2)

— 0.02 (0.02)

Net earnings from divestitures (2)

(0.02) (0.07) 0.05

Incremental costs due to war in Ukraine (2)

Operating results from divestitures (2)

— (0.05) 0.05

Remeasurement of net monetary position (2)

0.04 0.02 0.02

Loss on debt extinguishment and related expenses (3)

— 0.07 (0.07)

Initial impacts from enacted tax law changes (4)

Gain on marketable securities (3)

— (0.43) 0.43

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

Loss/(gain) on equity method investment transactions

including impairments (3)

0.49 (0.26) 0.75

Equity method investee items (4)

0.02 0.03 (0.01)

Adjusted EPS (1)

$ 0.95 $ 0.86 $ 0.09 10.5 %

Unfavorable currency translation 0.12 — 0.12

Currency-related items

Adjusted EPS (constant currency) (1)

2 unchanged sentences

Increase in operations $ 0.14

Impact from acquisitions 0.06

Change in benefit plan non-service income (0.02)

Change in interest and other expense, net (5)

Dividend income from marketable securities 0.01

Change in equity method investment net earnings (5)

Change in income taxes (6)

4 unchanged sentences

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 nine months ended September 30, 2023, taxes for the:

Simplify to Grow Program were $(9) million, intangible asset impairment charges were $(6) million, mark-to-market gains from derivatives were $38 million, acquisition integration costs and contingent consideration adjustments were $(39) million, divestiture-related costs were $(22) million, net earnings from divestitures were $4 million, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $15 million, gain on marketable securities were $135 million, gain on equity method investment transactions were $124 million and equity method investee items were zero.

• For the nine months ended September 30, 2022, taxes for the:

Simplify to Grow Program were $(16) million, intangible asset impairment charge was $(25) million, mark-to-market losses from derivatives were $(41) million, acquisition integration costs and contingent consideration adjustments were $(57) million, inventory step-up charges were $(5) million, acquisition-related costs were $(3) million, divestiture-related costs were $(3) million, net earnings from divestitures were $19 million, incremental costs due to the war in Ukraine were $4 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 $22 million, loss on equity method investment transactions were $1 million and equity method investee items 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) 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.

• For the three months ended March 31, 2024, taxes for the:

Simplify to Grow Program were $(11) million, mark-to-market gains from derivatives were $227 million, acquisition integration costs and contingent consideration adjustments were $(10) million, remeasurement of net monetary position were zero, loss on equity method investment transactions including impairments were zero and equity method investee items were zero.

• 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, operating results from divestitures were $16 million, remeasurement of net monetary position were zero, gain on marketable securities were $201 million, gain on equity method investment transactions were $125 million and equity method investee items were zero.

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

(3) Refer to Note 6, Investments , for additional information on gains/losses (including non-cash impairment charges) on equity method investment transactions and marketable securities.

(4) 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.

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

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

(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.

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

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

Results of Operations by Reportable Segment

9 unchanged sentences

For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2023 2022 2023 2022

(in millions)

8 unchanged sentences

Latin America $ 157 $ 139

AMEA 302 257 869 740

Europe 591 507

North America 549 566

Unrealized gains/(losses) on hedging activities

Unrealized gains on hedging activities

(mark-to-market impacts)

1 unchanged sentence

Amortization of intangible assets (38) (39)

Acquisition-related costs — (292) — (318)

Operating income 2,727 1,505

1 unchanged sentence

Interest and other expense, net (68) (95)

(Loss)/gain on marketable securities (1) — 606 —

Gain on marketable securities

Earnings before income taxes $ 2,682 $ 2,225

1 unchanged sentence

For the Three Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 157 139 18 12.9 %

For the Nine Months Ended

September 30,

2023 2022 $ Change

(in millions)

Net revenues $ 3,744 $ 2,615 $ 1,129 43.2 %

Segment operating income 429 305 124 40.7 %

Three Months Ended September 30:

Net revenues increased $392 million (42.9%), due to higher net pricing (31.5 pp), the impact of an acquisition (16.8 pp) and favorable volume/mix (3.6 pp), partially offset by unfavorable currency (8.8 pp) and the impact of divestitures (0.2 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 $153 million (constant currency basis) in the third quarter of 2023.

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

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

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

dollar relative to a few currencies in the region, primarily the Argentinean peso, partially offset by the strength of most currencies relative to the U.S.

dollar, primarily the Mexican peso and Brazilian real.

The impact of divestitures resulted in a year-over-year decline in net revenues of $1 million.

Segment operating income increased $44 million (39.3%), primarily due to higher net pricing, the impact of our Ricolino acquisition, lower manufacturing costs driven by productivity, favorable currency 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 higher acquisition integration costs.

Nine Months Ended September 30:

Net revenues increased $1,129 million (43.2%), due to higher net pricing (32.7 pp), the impact of an acquisition (17.2 pp) and favorable volume/mix (4.5 pp), partially offset by unfavorable currency (10.0 pp) and the impact of divestitures (1.2 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 $446 million (constant currency basis) in the first nine months of 2023.

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

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.

dollar relative to a few currencies in the region, primarily the Argentinean peso and Colombian peso, partially offset by the strength of most currencies relative to the U.S.

Three Months Ended March 31:

Net revenues increased $108 million (8.9%), due to higher net pricing (8.3 pp) and favorable impact of currency-related items (1.8 pp), partially offset by unfavorable volume/mix (1.2 pp).

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

Currency-related items were net positive due to the adjustment for extreme pricing in Argentina, which was mostly offset by unfavorable currency translation rate changes.

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

dollar relative to a few currencies in the region, primarily the Argentinean peso and Chilean peso, partially offset by the strength of several currencies relative to the U.S.

dollar, primarily the Mexican peso and Brazilian real.

The impact of divestitures resulted in a year-over-year decline in net revenues of $22 million.

Segment operating income increased $124 million (40.7%), primarily due to higher net pricing, the impact of our Ricolino acquisition, favorable volume/mix and lower manufacturing costs driven by productivity.

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 higher remeasurement loss on net monetary position.

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

Segment operating income increased $18 million (12.9%), primarily due to higher net pricing, lower other selling, general and administrative expenses, lower remeasurement loss on net monetary position and lower manufacturing costs driven by productivity.

These favorable items were partially offset by higher raw material costs, unfavorable currency-related items, higher acquisition integration costs, higher advertising and consumer promotion costs and unfavorable volume/mix.

For the Three Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 411 360 51 14.2 %

For the Nine Months Ended

September 30,

2023 2022 $ Change

(in millions)

Net revenues $ 5,339 $ 5,106 $ 233 4.6 %

Segment operating income 869 740 129 17.4 %

Three Months Ended September 30:

Net revenues increased $87 million (5.1%), due to higher net pricing (8.6 pp) and favorable volume/mix (3.3 pp), partially offset by unfavorable currency (6.8 pp).

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

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

Favorable volume/mix was driven by gains in chocolate, gum and candy, partially offset by declines in biscuits & baked snacks, refreshment beverages 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 Egyptian pound, Nigerian naira, Chinese yuan, Indian rupee, Australian dollar and South African Rand.

Segment operating income increased $45 million (17.5%), primarily due to higher net pricing, lower manufacturing costs driven by productivity, lapping prior-year intangible asset impairment charges and favorable volume/mix.

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

Nine Months Ended September 30:

Net revenues increased $233 million (4.6%), due to higher net pricing (8.8 pp) and favorable volume/mix (4.2 pp), partially offset by unfavorable currency (8.4 pp).

Three Months Ended March 31:

Net revenues increased $11 million (0.6%), due to higher net pricing (6.1 pp), mostly offset by unfavorable currency (5.3 pp) and unfavorable volume/mix (0.2 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 most of 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 Egyptian pound, Indian rupee, Chinese yuan, Australian dollar, South African Rand, Nigerian naira, Pakistan rupee and Philippine peso.

Segment operating income increased $129 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.

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

dollar relative to most currencies in the region, including the Nigerian naira, Chinese yuan, Australian dollar and Egyptian pound.

Overall, unfavorable volume/mix was impacted by geopolitical events in the Middle East and Southeast Asia.

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

Segment operating income increased $51 million (14.2%), primarily due to higher net pricing and lower manufacturing costs driven by productivity.

These favorable items were partially offset by higher other selling, general and administrative expenses, higher raw material costs, unfavorable currency translation rate changes and higher advertising and consumer promotion costs.

For the Three Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 591 507 84 16.6 %

For the Nine Months Ended

September 30,

2023 2022 $ Change

(in millions)

Net revenues $ 9,319 $ 8,210 $ 1,109 13.5 %

Segment operating income 1,450 1,170 280 23.9 %

Three Months Ended September 30:

Net revenues increased $437 million (16.5%), due to higher net pricing (12.1 pp), favorable volume/mix (3.3 pp) and favorable currency (1.1 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 most of our snack category products.

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

Favorable currency impacts reflected the strength of several currencies relative to the U.S.

dollar, including the euro, British pound sterling and Polish zloty, partially offset by the strength of the U.S.

dollar relative to several currencies across the region, including the Russian ruble and Turkish lira.

Segment operating income increased $81 million (19.6%), primarily due to higher net pricing, favorable volume/mix, lower manufacturing costs driven by productivity, lower other selling, general and administrative expenses, lower acquisition integration costs and lower costs incurred for the Simplify to Grow program.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, unfavorable currency, divestiture-related costs incurred in the third quarter of 2023, lapping the prior-year decrease in estimated allowances and reserves associated with incremental costs incurred due to the war in Ukraine and an intangible asset impairment charge incurred in the third quarter of 2023.

Nine Months Ended September 30:

Net revenues increased $1,109 million (13.5%), due to higher net pricing (15.9 pp), partially offset by unfavorable currency (2.4 pp), while volume/mix was flat.

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 several currencies across the region, including the Russian ruble, Turkish lira, British pound sterling, Ukrainian hryvnya, Norwegian krone and Swedish krona, partially offset by the strength of several currencies relative to the U.S.

dollar, including the euro, Polish zloty and Swiss franc.

Volume/mix was flat overall as gains in gum, biscuits & baked snacks, refreshment beverages and candy were offset by declines in cheese & grocery and chocolate.

Segment operating income increased $280 million (23.9%), 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, favorable volume/mix 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, divestiture-related costs incurred in the first nine months of 2023, higher remeasurement loss on net monetary position, higher costs incurred for the Simplify to Grow program, higher fixed asset impairment charges and an intangible asset impairment charge incurred in the first nine months of 2023.

Three Months Ended March 31:

Net revenues increased $61 million (1.8%), due to higher net pricing (7.9 pp) and the impact from short-term distributor agreements (0.8 pp), partially offset by unfavorable volume/mix (3.5 pp), the impact of divestitures (1.8 pp) and unfavorable currency translation rate changes (1.6 pp).

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

The short-term distributor agreement related to the October 1, 2023 sale of our developed market gum business added incremental net revenues of $25 million.

Overall, unfavorable volume/mix reflected volume declines due to the impact from customer price negotiation disruptions, partially offset by favorable product mix.

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

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $55 million.

Unfavorable currency translation rate changes reflected the strength of the U.S.

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, including the British pound sterling, euro and Polish zloty.

Segment operating income increased $84 million (16.6%), primarily due to higher net pricing, lower manufacturing costs driven by productivity, lower divestiture-related costs and lower acquisition integration costs.

These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, unfavorable volume/mix, higher advertising and consumer promotion costs, lapping prior-year operating results from the developed market gum business divested in 2023, unfavorable currency translation rate changes, higher costs incurred for the Simplify to Grow Program and higher remeasurement loss on net monetary position.

North America

For the Three Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 549 566 (17) (3.0) %

For the Nine Months Ended

September 30,

2023 2022 $ Change

(in millions)

Net revenues $ 8,300 $ 6,870 $ 1,430 20.8 %

Segment operating income 1,678 1,337 341 25.5 %

Three Months Ended September 30:

Net revenues increased $350 million (14.0%), due to higher net pricing (6.8 pp), favorable volume/mix (4.6 pp) and the impact of an acquisition (2.9 pp), partially offset by unfavorable currency (0.3 pp).

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

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

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

The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $71 million in the third quarter of 2023.

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

dollar relative to the Canadian dollar.

Segment operating income increased $67 million (14.4%), primarily due to higher net pricing, favorable volume/mix, lapping prior-year inventory step-up charges and the impact of our Clif Bar acquisition.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher acquisition integration costs and contingent consideration adjustments, an intangible asset impairment charge incurred in the third quarter of 2023, higher costs incurred for the Simplify to Grow Program, higher manufacturing costs, higher other selling, general and administrative expenses and higher fixed asset impairment charges.

Nine Months Ended September 30:

Net revenues increased $1,430 million (20.8%), due to higher net pricing (10.6 pp), the impact of an acquisition (7.7 pp) and favorable volume/mix (3.0 pp), partially offset by unfavorable currency (0.5 pp).

Three Months Ended March 31:

Net revenues decreased $56 million (2.1%), due to the impact of divestitures (3.5 pp) and unfavorable volume/mix (2.1 pp), partially offset by higher net pricing (3.4 pp) and favorable currency (0.1 pp).

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $92 million.

Overall, unfavorable volume/mix reflected consumer softness in the U.S.

Unfavorable volume/mix was driven by declines in biscuits & baked snacks and candy, partially offset by a gain in chocolate.

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 $529 million in the first nine 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, gum, chocolate and candy.

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

dollar relative to the Canadian dollar.

Segment operating income increased $341 million (25.5%), primarily due to higher net pricing, favorable volume/mix, the impact of our Clif Bar acquisition, lapping prior-year inventory step-up charges, 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 acquisition integration costs and contingent consideration adjustments, higher other selling, general and administrative expenses, an intangible asset impairment charge incurred in the first nine months of 2023, higher fixed asset impairment charges, divestiture-related costs incurred in the first nine months of 2023 and unfavorable currency.

Favorable currency impact was due to the strength of the Canadian dollar relative to the U.S.

Segment operating income decreased $17 million (3.0%), primarily due to lapping prior-year operating results from the developed market gum business divested in 2023, higher raw material costs, higher advertising and consumer promotion costs, unfavorable volume/mix, higher costs incurred for the Simplify to Grow Program and higher other selling, general and administrative expenses.

These unfavorable items were partially offset by higher net pricing, lower acquisition integration costs and contingent consideration adjustments, lower fixed asset impairment charges and lower manufacturing costs due to productivity.

Liquidity and Capital Resources

3 unchanged sentences

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

Our investment in JDE Peet's 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 global operations including the impact of ongoing or new developments in Ukraine and the Middle East.

To date, we have been successful in generating cash and raising financing as needed.

7 unchanged sentences

Our cash flow activity is noted below:

For the Nine Months Ended

September 30,

For the Three Months Ended

(in millions)

Net cash provided by operating activities $ 3,150 $ 2,516

Net cash provided by/(used in) investing activities $ 1,786 $ (3,410)

Net cash used in financing activities $ (5,074) $ (297)

Net cash provided by (used in):

Operating activities $ 1,324 $ 1,123

Investing activities (446) 636

Financing activities (1,223) (1,757)

Net Cash Provided by Operating Activities

The increase in net cash provided by operating activities was primarily due to an increase in cash-basis net earnings combined with favorable year-over-year working capital requirements.

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

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

This is largely a result of business growth and operating gains.

Net Cash (Used in)/Provided by Investing Activities

The improvement in net cash provided by/used in investing activities was largely driven by lapping prior-year cash consideration paid for the Chipita and Clif Bar acquisitions (refer to Note 2, Acquisitions and Divestitures ) and higher proceeds from the current year KDP and JDEP share sales compared to the prior year JDEP share sale (refer to Note 6, Investments ), partially offset by lapping higher proceeds from the settlement and replacement of net investment hedge derivative contracts.

The reduction in net cash used in/provided by investing activities was largely driven by lapping prior year proceeds from the KDP share sale (refer to Note 6, Investments ).

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

We expect 2023 capital expenditures to be up to $1.2 billion, including capital expenditures in connection with our Simplify to Grow

Program and for funding our strategic priorities.

We expect 2024 capital expenditures to be up to $1.5 billion, including capital expenditures in connection with our Simplify to Grow Program and for funding our strategic priorities.

We expect to continue to fund these expenditures with cash from operations.

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 share repurchases in the first nine months of 2023 compared to the same prior-year period.

We paid dividends of $1,581 million in the first nine months of 2023 and $1,457 million in the first nine months of 2022.

The third quarter 2023 dividend of $0.425 per share, declared on July 27, 2023 for shareholders of record as of September 29, 2023, was paid on October 13, 2023.

The decrease in cash used in financing activities was primarily due to higher debt proceeds combined with lower debt repayments, partially offset by higher share repurchases and higher dividends paid in the first three months of 2024 compared to the same prior year period.

We paid dividends of $578 million in the first three months of 2024 and $529 million in the first three months of 2023.

The first quarter 2024 dividend of $0.425 per share, declared on February 2, 2024 for shareholders of record as of March 28, 2024, was paid on April 11, 2024.

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.

4 unchanged sentences

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

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

As of March 31, 2024 and December 31, 2023, 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.

1 unchanged sentence

As such, we may issue commercial paper or secure other forms of financing throughout the year to meet short-term working capital or other financing needs.

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

Our total debt was $20.0 billion as of September 30, 2023 and $22.9 billion as of December 31, 2022.

Our debt-to-capitalization ratio was 0.41 at September 30, 2023 and 0.46 at December 31, 2022.

At September 30, 2023, the weighted-average term of our outstanding long-term debt was 8.0 years.

Our average daily commercial paper borrowings outstanding were $2.7 billion in the first nine months of 2023 and $1.4 billion in the first nine months of 2022.

At its December 2023 meeting, our Board of Directors approved a new $2 billion long-term financing authorization that replaced the prior long-term financing authorization of $2 billion.

As of March 31, 2024, $1.45 billion of the long-term financing authorization remained available.

Our total debt was $19.1 billion as of March 31, 2024 and $19.4 billion as of December 31, 2023.

Our debt-to-capitalization ratio was 0.40 at March 31, 2024 and 0.41 at December 31, 2023.

At March 31, 2024, the weighted-average term of our outstanding long-term debt was 7.7 years.

Our average daily commercial paper borrowings outstanding were $1.0 billion in the first three months of 2024 and $2.8 billion in the first three months of 2023.

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

(“MIHN”), has outstanding debt.

The operations held by MIHN generated approximately 71.5% (or $19.1 billion) of the $26.7 billion of consolidated net revenue in the nine months ended September 30, 2023.

The operations held by MIHN represented approximately 82.9% (or $23.7 billion) of the $28.6 billion of net assets as of September 30, 2023.

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

The operations held by MIHN generated approximately 74.2% (or $6.9 billion) of the $9.3 billion of consolidated net revenue in the three months ended March 31, 2024.

The operations held by MIHN represented approximately 75.8% (or $21.6 billion) of the $28.5 billion of net assets as of March 31, 2024.

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

Commodity Trends

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 nine months of 2023, the primary drivers of the increase in our aggregate commodity costs were higher energy, sugar, dairy, grains, packaging, edible oils, cocoa, 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.

During the first three months of 2024, the primary drivers of the increase in our aggregate commodity costs were higher cocoa, sugar, nuts, and other ingredient costs, as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower, dairy, edible oils, grains, energy and packaging costs.

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

A number of external factors such as the current macroeconomic environment, including global inflation, effects of geopolitical uncertainty, climate and weather conditions, commodity, transportation and labor market conditions, exchange rate volatility and the effects of local and global regulations, governmental agricultural or other programs affect the availability and cost of raw materials and agricultural materials used in our products.

In particular, the

supply of cocoa is exposed to many of these factors, including climate change and weather events, local regulations in cocoa-producing countries, and global regulations such as the EU Deforestation Regulation (which requires companies to ensure that the products they place on the EU market or export from it are not associated with deforestation).

These factors could impact the supply of cocoa, which could potentially limit our ability to produce our products and significantly impact profitability.

During the first three months of 2024, price volatility and the higher aggregate cost environment increased due to international supply chain and labor market disruptions and generally higher commodity, transportation and labor costs.

We expect these conditions to continue to impact our aggregate commodity costs.

In particular, we expect to face higher cocoa costs in the near- and medium-term due to these factors.

For example, the market price for cocoa beans on the Intercontinental Exchange in London was 283% higher on the last trading day of the first quarter of 2024 compared to the same day in the first quarter of 2023 and it is likely that prices will remain elevated for some time.

It is possible that we may not be able to increase prices sufficiently to fully cover the incremental costs of cocoa prices in this environment and/or our hedging strategies may not protect us from increases in cocoa costs, which could result in a significant impact on our profitability.

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

1 unchanged sentence

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.

Our commodity procurement practices are intended to mitigate price volatility and provide visibility to future costs, but also may potentially limit our ability to benefit from possible future price decreases.

Additionally, our costs for major raw materials will not necessarily reflect market price fluctuations because of our forward purchasing and hedging practices.

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 nine 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.

Significant Accounting Estimates

2 unchanged sentences

Actual results could differ from those estimates and assumptions.

Our significant accounting policies are described in Note 1 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022.

Our significant accounting estimates are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2022.

See also Note 1, Basis of Presentation , in this report.

Our significant accounting policies and estimates are described in Note 1 to our consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, respectively, in our Annual Report on Form 10-K for the year ended December 31, 2023.

Also refer to Note 1, Basis of Presentation , in this report.

Forward-Looking Statements

10 unchanged sentences

Important factors that could cause our actual results or performance to differ materially from those contained in or implied by our forward-looking statements include, but are not limited to, the following:

• weakness in macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation), instability of certain financial institutions, volatility of commodity and other input costs and availability of commodities;

• volatility of commodity and other input costs and availability of commodities, including but not limited to cocoa;

• geopolitical uncertainty, including the impact of ongoing or new developments in Ukraine and the Middle East, 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;

32 unchanged sentences

We use non-GAAP financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide additional insight and transparency on how we evaluate our business.

We use non-GAAP financial measures to budget, make operating and strategic decisions and evaluate our performance.

We use non-GAAP financial measures to

budget, make operating and strategic decisions and evaluate our performance.

We have detailed the non-GAAP adjustments that we make in our non-GAAP definitions below.

The adjustments generally fall within the following categories:

acquisition & divestiture activities, gains and losses on intangible asset sales and non-cash impairments, major program restructuring activities, constant currency and related adjustments, major program financing and hedging activities and other major items affecting comparability of operating results.

acquisition and divestiture activities, gains and losses on intangible asset sales and non-cash impairments, major program restructuring activities, constant currency and related adjustments, major program financing and hedging activities and other major items affecting comparability of operating results.

We believe the non-GAAP measures should always be considered along with the related U.S.

GAAP financial measures.

We have provided the reconciliations between the U.S.

GAAP and non-GAAP financial measures below, and we also discuss our underlying U.S.

GAAP results throughout our Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.

We have provided the reconciliations between the GAAP and non-GAAP financial measures along with a discussion of our underlying GAAP results throughout our Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.

Our primary non-GAAP financial measures are listed below and reflect how we evaluate our current and prior-year operating results.

2 unchanged sentences

• “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) .

GAAP financial measure) excluding the impacts of acquisitions, divestitures (2) , short-term distributor agreements related to the sale of business (3) and currency rate fluctuations (4) .

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

11 unchanged sentences

the operating results of divestitures (2) ;

operating results from short-term distributor agreements related to the sale of a business (3) ;

remeasurement of net monetary position (10) ;

11 unchanged sentences

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

net earnings from divestitures (2) ;

mark-to-market unrealized gains or losses and realized gains or losses from marketable securities (16) ;

initial impacts from enacted tax law changes (17) ;

and gains or losses on equity method investment transactions.

Similarly, within Adjusted EPS, our equity method investment net earnings exclude our proportionate share of our investees’ significant operating and non-operating items (15) .

and gains or losses on equity method investment transactions including impairments.

Similarly, within Adjusted EPS, our equity method investment net earnings exclude our proportionate share of our investee's significant operating and non-operating items (18) .

We also evaluate growth in our Adjusted EPS on a constant currency basis (4) .

1 unchanged sentence

(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.

In the first quarter of 2023, we added to the non-GAAP definition for divestitures the inclusion of changes from equity method investment accounting to accounting for equity interests with readily determinable fair values (“marketable securities”;

refer to footnote (2) below).

In addition, we added to the non-GAAP definitions the exclusion of gains or losses associated with marketable securities (see footnote (15) below).

Beginning in Q1 2024, due to a significant devaluation of the Argentinean peso that occurred in December 2023 and the resulting distortion it would cause on our non-GAAP constant currency growth rate measures, we now exclude the

impact of pricing in excess of 26% year-over-year ("extreme pricing") in Argentina, which is the level at which hyperinflation generally occurs cumulatively over a 3-year period.

We have excluded the impact of extreme pricing in Argentina from our calculation of Organic Net Revenue, Organic Net Revenue growth and other non-GAAP financial constant currency growth measures with a corresponding adjustment to changes in currency exchange rates.

We made this change on a prospective basis due to the distorting effect expected in the current period and future periods following the Argentinian peso devaluation that occurred in December 2023 and did not revise our historical non-GAAP constant currency growth measures.

(2) Divestitures include completed sales of businesses, exits of major product lines upon completion of a sale or licensing agreement, the partial or full sale of an equity method investment and changes from equity method investment accounting to accounting for marketable securities.

As we record our share of JDE Peet’s ongoing earnings on a one-quarter lag basis, any JDE Peet’s ownership reductions are reflected as divestitures within our non-GAAP results the following quarter.

(3) In the fourth quarter of 2023, we began to exclude the operating results from short-term distributor agreements that have been executed in conjunction with the sale of a business.

We exclude this item to better facilitate comparisons of our underlying operating performance across periods.

(4) Constant currency operating results are calculated by dividing or multiplying, as appropriate, the current-period local currency operating results by the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S.

dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.

Beginning in the first quarter of 2024, we also now include within our currency-related impacts a corresponding adjustment associated with the impact of extreme pricing in Argentina.

(5) Non-GAAP adjustments related to the Simplify to Grow Program reflect costs incurred that relate to the objectives of our program to transform our supply chain network and organizational structure.

2 unchanged sentences

We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(6) Acquisition-related costs, which includes transaction costs such as third party advisor, investment banking and legal fees, also includes one-time compensation expense related to the buyout of non-vested ESOP shares.

(7) Acquisition-related costs, which includes transaction costs such as third party advisor, investment banking and legal fees, also includes one-time compensation expense related to the buyout of non-vested ESOP shares and realized gains or losses from hedging activities associated with acquisition funds.

We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(7) Acquisition integration costs and contingent consideration adjustments include one-time costs related to the integration of acquisitions as well as any adjustments made to the fair market value of contingent compensation liabilities that have been

previously booked for earn-outs related to acquisitions that do not relate to employee compensation expense.

(8) Acquisition integration costs and contingent consideration adjustments include one-time costs related to the integration of acquisitions as well as any adjustments made to the fair market value of contingent compensation liabilities that have been previously booked for earn-outs related to acquisitions that do not relate to employee compensation expense.

We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

2 unchanged sentences

(10) 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.

(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.

dollar during the periods presented and the realized gains and losses from derivatives that mitigate the foreign currency volatility related to the remeasurement of the respective net monetary assets or liabilities during the periods presented.

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

The mark-to-market impacts of commodity and forecasted currency transaction derivatives are excluded until such time that the related exposures impact our operating results.

1 unchanged sentence

We exclude equity method investment transaction derivative contract settlements as they represent protection of value for future divestitures.

(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) See Note 12, Commitments and Contingencies , in this report, and Note 14, Commitments and Contingencies , in our Annual Report on Form 10-K for the year ended December 31, 2023.

(13) 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.

9 unchanged sentences

Due to the unique nature of this matter, we believe it to be infrequent and unusual and therefore exclude it to better facilitate comparisons of our underlying operating performance across periods.

Refer to Note 12, Commitments and Contingencies .

Refer to Note 12, Commitments and Contingencies, for additional information.

(15) The impact from pension participation changes represents the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation.

We exclude these charges from our non-GAAP results because those amounts do not reflect our ongoing pension obligations.

See Note 10, Benefit Plans , for more information on the multiemployer pension plan withdrawal.

See Note 10, Benefit Plans , for additional information on the multiemployer pension plan withdrawal.

(16) In the first quarter of 2023, we began to exclude mark-to-market unrealized gains or losses, as well as realized gains or losses, associated with our marketable securities from our non-GAAP earnings measures.

6 unchanged sentences

Our use of equity method investment net earnings on an adjusted basis is not intended to imply that we have any such control.

GAAP “diluted EPS attributable to Mondelēz International from continuing operations” includes all of the investees’ significant operating and non-operating items.

Our GAAP “diluted EPS attributable to Mondelēz International from continuing operations” includes all of the investees’ significant operating and non-operating items.

We believe that the presentation of these non-GAAP financial measures, when considered together with our U.S.

10 unchanged sentences

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