What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-10-29 compared with 2024-07-30 · 260 added, 217 removed, 664 unchanged (42% of the section changed)

23 unchanged sentences

We continue to consolidate both our Ukrainian and Russian subsidiaries.

During the second quarter of 2024, Ukraine generated 0.4% and Russia generated 2.9% of consolidated net revenue and during the second quarter of 2023, Ukraine generated 0.3% and Russia generated 2.8% of consolidated net revenue.

During the third quarter of 2024, Ukraine generated 0.4% and Russia generated 2.9% of consolidated net revenue and during the third quarter of 2023, Ukraine generated 0.4% and Russia generated 2.7% of consolidated net revenue.

The profitability of and the assets held by our Russian business continue to remain above historical levels.

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

In the second 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.

In the third 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.

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Refer to Non-GAAP financial measures for additional information.

Currency-related items impacted our non-GAAP financial measures for the three months ended June 30, 2024 as follows:

Currency-related items impacted our non-GAAP financial measures for the three months ended September 30, 2024 as follows:

• Organic Net Revenue:

1 unchanged sentence

In Emerging Markets, unfavorable currency-related items of $170 million (4.8 pp) were driven by unfavorable currency translation rate changes of $443 million (12.6 pp), partially offset by the adjustment for extreme pricing of $273 million (7.8 pp).

In Developed Markets, unfavorable currency-related items of $23 million (0.4pp) were driven by unfavorable currency translation rate changes.

In Developed Markets, favorable currency-related items of $50 million (1.0 pp) were driven by favorable currency translation rate changes.

• Adjusted Operating Income:

1 unchanged sentence

• Adjusted EPS:

Unfavorable currency-related items of $0.04 were driven by unfavorable currency translation rate changes of $0.08, partially offset by the adjustment for extreme pricing of $0.04.

Currency-related items impacted our non-GAAP financial measures for the six months ended June 30, 2024 as follows:

Unfavorable currency-related items were flat as unfavorable currency translation rate changes of $0.04 were offset by the adjustment for extreme pricing of $0.04.

Currency-related items impacted our non-GAAP financial measures for the nine months ended September 30, 2024 as follows:

• Organic Net Revenue:

6 unchanged sentences

Unfavorable currency-related items of $0.09 were driven by unfavorable currency translation rate changes of $0.26, partially offset by the adjustment for extreme pricing of $0.17.

Acquisitions and Divestitures

In the third quarter of 2024, we announced a signed agreement to acquire a majority stake of Evirth (Shanghai) Industrial Co., Ltd, a leading manufacturer of cakes and pastries in China.

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

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.

1 unchanged sentence

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

Refer to Note 2, Divestitures , for additional details.

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

Investment Transactions

4 unchanged sentences

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

Subsequently in 2023, we sold the remainder of our shares of KDP and exited our investment in the company.

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

JDE Peet’s Transactions (Euronext Amsterdam:

During the first quarter of 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).

During the first quarter of 2023, we sold approximately 7.7 million shares of JDEP, which reduced our ownership to 18.1%.

We recorded a loss of €18 million ($19 million) on this sale.

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 percentage by 0.4 percentage point, from 18.1% to 17.7% of the total outstanding shares.

We recorded a loss of €3 million ($4 million) on this sale.

During the first quarter of 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).

On October 21, 2024, we announced the sale of our remaining 85.9 million shares in JDEP to JAB Holdings Company for approximately €2.2 billion ($2.4 billion).

The sale transaction is expected to be completed in the fourth quarter of 2024.

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

Benefit Plans

As of October 2024, the Company intends to terminate the Mondelēz Global LLC Retirement Plan.

The termination process is expected to be completed as of June 30, 2025.

Refer to Note 10, Benefit Plans for additional information.

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

As of June 30, 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.

As of September 30, 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.

12 unchanged sentences

Summary of Results

• Net revenues decreased 1.9% to $8.3 billion in the second quarter of 2024 and decreased 0.2% to $17.6 billion in the first six months of 2024 as compared to the same periods in the prior year.

– Net revenue decline in the second quarter of 2024 was driven by 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, unfavorable volume/mix and the impact of our 2023 divestiture of the developed market gum business, partially offset by higher net pricing.

– Net revenue decline in the first six months of 2024 was driven by unfavorable volume/mix, 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 and the impact of our 2023 divestiture of the developed market gum business, partially offset by higher net pricing and incremental net revenue from a short-term distributor agreement related to the sale of our developed market gum business.

• Organic Net Revenue, a non-GAAP financial measure, increased 2.5% to $8.6 billion in the second quarter of 2024 and increased 3.4% to $18.0 billion in the first six months of 2024 as compared to the same periods in the prior year.

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

• Net revenues increased 1.9% to $9.2 billion in the third quarter of 2024 and increased 0.5% to $26.8 billion in the first nine months of 2024 as compared to the same periods in the prior year.

– Net revenue growth in the third quarter of 2024 was driven by higher net pricing and favorable volume mix, partially offset by 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.

– Net revenue growth in the first nine months 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 the impact of our 2023 divestiture of the developed market gum business, 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 and unfavorable volume/mix.

• Organic Net Revenue, a non-GAAP financial measure, increased 5.4% to $9.3 billion in the third quarter of 2024 and increased 4.0% to $27.3 billion in the first nine months of 2024 as compared to the same periods in the prior year.

During the third quarter Organic Net Revenue grew due to higher net pricing and favorable volume/mix.

During the first nine months 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 decreased (34.8)% to $0.45 in the second quarter of 2024 and decreased (32.3)% to $1.49 in the first six months of 2024 as compared to the same periods in the prior year.

– Diluted EPS decreased in the second quarter of 2024, driven by an unfavorable year-over-year change in mark-to-market impacts from commodity and currency derivatives, lapping prior-year operating results from the developed market gum business divested in 2023, unfavorable initial impacts from enacted tax law changes, higher acquisition integration costs and contingent consideration adjustments and higher equity method investee items.

These unfavorable items were partially offset by an increase in Adjusted EPS, lapping prior-year losses on marketable securities and equity method investment transactions, lower loss on remeasurement of net monetary position and lower divestiture-related costs.

– Diluted EPS decreased in the first six months of 2024, driven by an impairment charge on our JDEP equity method investment in 2024, lapping prior-year net gains on marketable securities and equity method investment transactions primarily related to our former KDP investment, lapping prior-year operating results from the developed market gum business divested in 2023, unfavorable initial impacts from enacted tax law changes, higher acquisition integration costs and contingent consideration adjustments, higher costs incurred from our Simplify to Grow program and higher equity method investee items.

These unfavorable items were partially offset by an increase in Adjusted EPS, favorable year-over-year change in mark-to-market impacts from commodity and currency derivatives, lower divestiture-related costs and lower loss on remeasurement of net monetary position.

• Adjusted EPS, a non-GAAP financial measure, increased 19.4% to $0.86 in the second quarter of 2024 and increased 15.9% to $1.82 in the first six months of 2024 as compared to the same periods in the prior year.

On a constant currency basis, Adjusted EPS increased 25.0% to $0.90 in the second quarter of 2024 and increased 20.4% to $1.89 in the first six months of 2024 as compared to the same periods in the prior year.

• Diluted EPS attributable to Mondelēz International decreased (12.5)% to $0.63 in the third quarter of 2024 and decreased (27.4)% to $2.12 in the first nine months of 2024 as compared to the same periods in the prior year.

– Diluted EPS decreased in the third quarter of 2024, driven by an unfavorable year-over-year change in mark-to-market impacts from commodity and currency derivatives, higher intangible asset impairment charges, lapping prior-year operating results from the developed market gum business divested in 2023, costs incurred for the ERP Systems Implementation program and lapping prior-year gain on marketable securities.

These unfavorable items were partially offset by an increase in Adjusted EPS, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, lower equity method investee items, favorable year-over-year change in initial impacts from enacted tax law changes and lower loss on remeasurement of net monetary position.

– Diluted EPS decreased in the first nine months of 2024, driven by an impairment charge on our JDEP equity method investment in 2024, lapping prior-year net gains on marketable securities and equity method investment transactions primarily related to our former KDP investment, unfavorable year-over-year change in mark-to-market impacts from commodity and currency derivatives, lapping prior-year operating results from the developed market gum business divested in 2023, higher intangible asset impairment charges, costs incurred for the ERP Systems Implementation program and higher costs incurred from our Simplify to Grow program.

These unfavorable items were partially offset by an increase in Adjusted EPS, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, lower divestiture-related costs, lower loss on remeasurement of net monetary position and lower equity method investee items.

• Adjusted EPS, a non-GAAP financial measure, increased 28.6% to $0.99 in the third quarter of 2024 and increased 19.1% to $2.80 in the first nine months of 2024 as compared to the same periods in the prior year.

On a constant currency basis, Adjusted EPS increased 28.6% to $0.99 in the third quarter of 2024 and increased 23.0% to $2.89 in the first nine months of 2024 as compared to the same periods in the prior year.

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

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

– Adjusted EPS increased in the first six months of 2024, driven by operating gains, lower interest expense, fewer shares outstanding and higher benefit plan non-service income, partially offset by unfavorable currency-related items, higher taxes and lapping prior year dividend income related to our former KDP investment.

– Adjusted EPS increased in the third quarter of 2024, driven by operating gains, fewer shares outstanding, lower interest expense and lower taxes.

– Adjusted EPS increased in the first nine months of 2024, driven by operating gains, fewer shares outstanding, lower interest expense and higher benefit plan non-service income, partially offset by unfavorable currency-related items, higher taxes and lapping prior year dividend income related to our former KDP investment.

Discussion and Analysis of Historical Results

4 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

See Note 2024 2023 2024 2023

3 unchanged sentences

Implementation charges (17) (4) (40) (13)

Intangible asset impairment charges Note 5 (153) (26) (153) (26)

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

4 unchanged sentences

328 (68) 249 (143)

Acquisition-related costs (2) — (2) —

Divestiture-related costs 2 (14) (2) (66)

3 unchanged sentences

ERP System Implementation costs (3)

(29) — (38) —

Remeasurement of net monetary position Note 1 (9) (22) (26) (60)

3 unchanged sentences

Initial impacts from enacted tax law changes Note 14 11 (13) (12) (15)

(Loss)/gain on marketable securities

Gain on marketable securities

Note 6 — — — 593

14 unchanged sentences

Consolidated Results of Operations

Three Months Ended June 30

Three Months Ended September 30

For the Three Months Ended

September 30,

2024 2023 $ Change

8 unchanged sentences

0.63 0.72 (0.09) (12.5) %

Net Revenues – Net revenues decreased $164 million (1.9%) to $8,343 million in the second quarter of 2024, and Organic Net Revenue (1) increased $209 million (2.5%) to $8,559 million.

Emerging markets net revenues decreased (1.4)% and emerging markets Organic Net Revenue increased 4.5% (1) .

Developed markets net revenues decreased (2.3)% and developed markets Organic Net Revenue increased 1.2% (1) .

Net Revenues – Net revenues increased $175 million (1.9%) to $9,204 million in the third quarter of 2024, and Organic Net Revenue (1) increased $474 million (5.4%) to $9,324 million.

Emerging markets net revenues increased 0.1% and emerging markets Organic Net Revenue increased 4.9% (1) .

Developed markets net revenues increased 3.1% and developed markets Organic Net Revenue increased 5.6% (1) .

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

2 unchanged sentences

International

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Reported (GAAP) $ 3,530 $ 5,674 $ 9,204

1 unchanged sentence

Organic (Non-GAAP) $ 3,700 $ 5,624 $ 9,324

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

Reported (GAAP) $ 3,527 $ 5,502 $ 9,029

9 unchanged sentences

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

Net revenue decrease of 1.9% was driven by unfavorable currency-related items and the impact of our 2023 divestiture of the developed market gum business, partially offset by our underlying Organic Net Revenue growth of 2.5%.

Net revenue increase of 1.9% was driven by our underlying Organic Net Revenue growth of 5.4%, 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 and favorable 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 nine months of 2024.

Overall, positive volume/mix reflected improved volume trends in North America due to increased consumer demand in the U.S.

as well as Europe rebounding from last quarter's customer price negotiation disruptions.

Favorable volume/mix was driven by gains in North America, Europe and AMEA, partially offset by unfavorable volume/mix in Latin America.

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $179 million for the third quarter of 2024.

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

Currency-related items decreased net revenues by $120 million, driven by unfavorable currency translation rate changes, partially offset by the adjustment for extreme pricing in Argentina.

1 unchanged sentence

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 Nigerian naira, Russian ruble, Turkish lira, Brazilian real, Egyptian pound, euro and Chinese yuan, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Mexican peso, British pound sterling, Polish zloty and Colombian peso.

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $157 million for the second quarter of 2024.

Refer to Note 2, Divestitures, for additional information.

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

Unfavorable volume/mix was reflected across all regions.

Operating Income – Operating income decreased $571 million (40.1%) to $854 million in the second quarter of 2024.

dollar relative to several currencies, primarily the Argentinean peso, as well as the Brazilian real, Mexican peso, Nigerian naira, Egyptian pound and Turkish lira, partially offset by the strength of several currencies relative to the U.S.

dollar, including the British pound sterling, euro, Russian ruble, Polish zloty, Australian dollar and Chinese yuan.

Operating Income – Operating income decreased $226 million (16.4%) to $1,153 million in the third quarter of 2024.

Adjusted Operating Income (1) increased $300 million (20.9%) to $1,738 million and Adjusted Operating Income on a constant currency basis (1) increased $316 million (22.0%) to $1,754 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 charges (3)

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

571 (171) 742

Acquisition integration costs and

contingent consideration adjustments (5)

(328) 68 (396)

Acquisition-related costs (5)

Divestiture-related costs (5)

Operating results from divestitures (5)

European Commission legal matter (3) — (3)

Incremental costs due to war in Ukraine (6)

8 unchanged sentences

Higher net pricing

Lower input costs

Unfavorable volume/mix (68)

Higher input costs

Favorable volume/mix 8

Higher selling, general and administrative expenses

Higher amortization of intangible assets

Lower asset impairment charges

Higher asset impairment charges

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

1 unchanged sentence

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

(5) Refer to Note 2, Acquisitions and 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.

(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.

During the second 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 six months of 2024, was reflected across all regions.

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

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 energy, edible oils, dairy, grains and packaging costs.

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

Unfavorable volume/mix was experienced in all regions.

Total selling, general and administrative expenses increased $22 million from the second quarter of 2023, which was net of benefits from a number of factors noted in the table above, including in part, the elimination of costs from the developed market gum business divested in 2023, lower divestiture-related costs, lower remeasurement loss of net monetary position and a favorable currency translation impact related to expenses, partially offset by higher acquisition integration costs and contingent consideration adjustments and costs incurred for the ERP System Implementation program.

Excluding these factors, selling, general and administrative expenses increased $79 million from the second quarter of 2023.

(7) Refer to MD&A Headlines, ERP System Implementation , for more information.

During the third quarter of 2024, we realized higher net pricing and favorable volume/mix, which were partially offset by increased input costs.

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 nine months of 2024, was reflected across all regions.

Favorable volume/mix was driven by gains in Europe and North America, partially offset by declines in Latin America and AMEA.

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

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

Total selling, general and administrative expenses decreased $389 million from the third quarter of 2023, which was net of benefits from a number of factors noted in the table above, including in part, a favorable contingent consideration adjustment related to the Clif Bar acquisition and lower acquisition integration costs, the elimination of costs from the developed market gum business divested in 2023, a favorable currency translation impact related to expenses, lower divestiture-related costs and lower remeasurement loss of net monetary position, partially offset by costs incurred for the ERP System Implementation program and higher implementation costs incurred for the Simplify to Grow program.

Excluding these factors, selling, general and administrative expenses increased $53 million from the third 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-related items, net of the adjustment for extreme pricing in Argentina, decreased operating income by $16 million primarily due to the strength of the U.S.

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

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

Operating income margin decreased from 16.8% in the second quarter of 2023 to 10.2% in the second quarter of 2024.

The decrease in operating income margin was driven primarily by the unfavorable year-over-year change in mark-to-market gains/(losses) from commodity and currency hedging activities, the impact from the developed market gum business divested in 2023, higher acquisition integration costs and contingent consideration adjustments, costs incurred for the ERP System Implementation program and higher costs incurred for the Simplify to Grow program, partially offset by higher Adjusted Operating Income margin, lower divestiture-related costs and lower remeasurement loss of net monetary position.

Adjusted Operating Income margin increased from 15.2% for the second quarter of 2023 to 17.9% for the second quarter of 2024.

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

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $601 million decreased by $343 million (36.3%) in the second quarter of 2024.

Diluted EPS attributable to Mondelēz International was $0.45 in the second quarter of 2024, down $0.24 (34.8%) from the second quarter of 2023.

Adjusted EPS (1) was $0.86 in the second quarter of 2024, up $0.14 (19.4%) from the second quarter of 2023.

Adjusted EPS on a constant currency basis (1) was $0.90 in the second quarter of 2024, up $0.18 (25.0%) from the second quarter of 2023.

dollar relative to several currencies, including the Argentinean peso, Brazilian real, Egyptian pound and Mexican peso, partially offset by the strength of several currencies relative to the U.S.

dollar, primarily the British pound sterling, Russian ruble and euro.

Operating income margin decreased from 15.3% in the third quarter of 2023 to 12.5% in the third quarter of 2024.

The decrease in operating income margin was driven primarily by the unfavorable year-over-year change in mark-to-market gains/(losses) from commodity and currency hedging activities, higher intangible asset impairment charges, the impact from the developed market gum business divested in 2023 and costs incurred for the ERP System Implementation program, partially offset by favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, higher Adjusted Operating Income margin, lower divestiture-related costs, lower remeasurement loss of net monetary position and lower costs incurred for the Simplify to Grow program.

Adjusted Operating Income margin increased from 16.2% for the third quarter of 2023 to 18.9% for the third quarter of 2024.

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

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $853 million decreased by $131 million (13.3%) in the third quarter of 2024.

Diluted EPS attributable to Mondelēz International was $0.63 in the third quarter of 2024, down $0.09 (12.5%) from the third quarter of 2023.

Adjusted EPS (1) was $0.99 in the third quarter of 2024, up $0.22 (28.6%) from the third quarter of 2023.

Adjusted EPS on a constant currency basis (1) was $0.99 in the third quarter of 2024, up $0.22 (28.6%) from the third 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 charges (2)

0.08 0.02 0.06

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

3 unchanged sentences

(0.18) 0.04 (0.22)

Divestiture-related costs (2)

— 0.01 (0.01)

Operating results from divestitures (2)

— (0.05) 0.05

ERP System Implementation costs (2)

Remeasurement of net monetary position (2)

1 unchanged sentence

Initial impacts from enacted tax law changes (3)

Gain on marketable securities (4)

(0.01) 0.01 (0.02)

Loss on equity method investment transactions

including impairments (4)

Gain on marketable securities (4)

— (0.02) 0.02

Equity method investee items (5)

0.01 0.03 (0.02)

Adjusted EPS (1)

6 unchanged sentences

Change in interest and other expense, net (6)

Change in equity method investment net earnings 0.01

Change in income taxes (3)

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 three months ended June 30, 2024, taxes for the:

Simplify to Grow Program were $(6) million, mark-to-market losses from derivatives were $(111) million, acquisition integration costs and contingent consideration adjustments were $(7) million, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $25 million and equity method investee items were zero.

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

Simplify to Grow Program were $(1) million, mark-to-market gains from derivatives were $21 million, acquisition integration costs and contingent consideration adjustments were $(9) million, divestiture-related costs were $(4) million, operating results from divestitures were $12 million, remeasurement of net monetary position were zero, gain on marketable securities were $(45) million, gain on equity method investment transactions were $(1) million and equity method investee items were zero.

• For the three months ended September 30, 2024, taxes for the:

Simplify to Grow Program were $(2) million, intangible asset impairment charges were $(40) million, mark-to-market losses from derivatives were $(144) million, acquisition integration costs and contingent consideration adjustments were $84 million, ERP System Implementation program were $(6) million, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $(11) million and equity method investee items were zero.

• 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, divestiture-related costs were $(14) million, operating results from divestitures 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.

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

5 unchanged sentences

(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.

Six Months Ended June 30:

For the Six Months Ended

Nine Months Ended September 30:

For the Nine Months Ended

September 30,

2024 2023 $ Change

8 unchanged sentences

2.12 2.92 (0.80) (27.4) %

Net Revenues – Net revenues decreased $40 million (0.2%) to $17,633 million in the first six months of 2024, and Organic Net Revenue (1) increased $587 million (3.4%) to $17,956 million.

Net Revenues – Net revenues increased $135 million (0.5%) to $26,837 million in the first nine months of 2024, and Organic Net Revenue (1) increased $1,061 million (4.0%) to $27,280 million.

Emerging markets net revenues increased 0.9% and emerging markets Organic Net Revenue increased 6.0% (1) .

Developed markets net revenues decreased (1.2)% and developed markets Organic Net Revenue increased 1.3% (1) .

Developed markets net revenues increased 0.3% and developed markets Organic Net Revenue increased 2.8% (1) .

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

2 unchanged sentences

International

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Reported (GAAP) $ 10,523 $ 16,314 $ 26,837

3 unchanged sentences

Organic (Non-GAAP) $ 11,049 $ 16,231 $ 27,280

Six Months Ended June 30, 2023

Nine Months Ended September 30, 2023

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

11 unchanged sentences

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

Net revenue decrease of 0.2% was driven by unfavorable currency-related items and the impact of our 2023 divestiture of the developed market gum business, partially offset by our underlying Organic Net Revenue growth of 3.4% and the impact of a short-term distributor agreement.

Net revenue increase of 0.5% was driven by our underlying Organic Net Revenue growth of 4.0% 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 nine months of 2024.

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

and Mexico 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 for the first nine months of 2024.

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $483 million for the first nine months of 2024.

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

Currency-related items decreased net revenues by $468 million, driven by unfavorable currency translation rate changes, partially offset by the adjustment for extreme pricing in Argentina.

1 unchanged sentence

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

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

dollar, including the Mexican peso, British pound sterling, Polish zloty and Colombian peso.

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $304 million for the first six months of 2024.

Refer to Note 2, Divestitures, for additional information.

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 six 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 Mexico 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 for the first six months of 2024.

Operating Income – Operating income increased $651 million (22.2%) to $3,581 million in the first six months of 2024.

dollar relative to several currencies, primarily the

Argentinean peso, as well as the Nigerian naira, Turkish Lira, Russian ruble, Brazilian real, Egyptian pound and Chinese yuan, partially offset by the strength of several currencies relative to the U.S.

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

Operating Income – Operating income increased $425 million (9.9%) to $4,734 million in the first nine months of 2024.

Adjusted Operating Income (1) increased $709 million (16.8%) to $4,940 million and Adjusted Operating Income on a constant currency basis (1) increased $852 million (20.1%) to $5,083 million due to the following:

For the Six Months Ended

For the Nine Months Ended

September 30,

2024 2023 $ Change % Change

2 unchanged sentences

Simplify to Grow Program (2)

Mark-to-market gains from derivatives (3)

Intangible asset impairment charges (3)

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

157 (239) 396

1 unchanged sentence

contingent consideration adjustments (5)

(249) 143 (392)

Acquisition-related costs (5)

Divestiture-related costs (5)

Operating income from divestitures (4)

Operating results from divestitures (5)

Operating income from short-term distributor agreements

18 unchanged sentences

(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.

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

(5) Refer to Note 2, Acquisitions and 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.

(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.

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

(7) Refer to MD&A Headlines, ERP System Implementation , for more information.

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

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 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, energy, edible oils, grains and packaging costs.

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

Unfavorable volume/mix was experienced in all regions.

Total selling, general and administrative expenses increased $105 million from the first six months of 2023, which was net of benefits from a number of factors noted in the table above, including in part, the elimination of costs from the developed market gum business divested in 2023, lower divestiture-related costs, lower remeasurement loss of net monetary position and a favorable currency translation impact related to expenses, marginally offset by costs incurred for the ERP System Implementation program, higher implementation costs incurred for the Simplify to Grow program and lower acquisition integration costs and contingent consideration adjustments.

Excluding these factors, selling, general and administrative expenses increased $217 million from the first six months of 2023.

Total selling, general and administrative expenses decreased $284 million from the first nine months of 2023, which was net of benefits from a number of factors noted in the table above, including in part, a favorable contingent consideration adjustment related to the Clif Bar acquisition and lower acquisition integration costs, the elimination of costs from the developed market gum business divested in 2023, lower divestiture-related costs, lower remeasurement loss of net monetary position and a favorable currency translation impact related to expenses, marginally offset by costs incurred for the ERP System Implementation program and higher implementation costs incurred for the Simplify to Grow program.

Excluding these factors, selling, general and administrative expenses increased $270 million from the first nine months 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, net of the adjustment for extreme pricing in Argentina, decreased operating income by $143 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, Egyptian pound, Nigerian naira and Australian dollar, partially offset by the strength of a few currencies relative to the U.S.

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

Operating income margin increased from 16.6% in the first six months of 2023 to 20.3% in the first six months of 2024.

The increase was driven primarily by higher Adjusted Operating Income margin, favorable year-over-year change in mark-to-market gains/(losses) from commodity and currency hedging activities, 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, higher costs incurred for the Simplify to Grow program and costs incurred for the ERP System Implementation program.

Adjusted Operating Income margin increased from 16.1% for the first six months of 2023 to 18.2% for the first six months of 2024.

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

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

Operating income margin increased from 16.1% in the first nine months of 2023 to 17.6% in the first nine months of 2024.

The increase was driven primarily by higher Adjusted Operating Income margin, favorable year-over-year change in acquisition integration costs and contingent consideration adjustments, lower divestiture-related costs and lower remeasurement loss of net monetary position, partially offset by unfavorable year-over-year change in mark-to-market gains/(losses) from commodity and currency hedging activities, the impact from the developed market gum business divested in 2023, costs incurred for the ERP System Implementation program and higher costs incurred for the Simplify to Grow program.

Adjusted Operating Income margin increased from 16.1% for the first nine months of 2023 to 18.4% for the first nine months of 2024.

The increase was driven primarily by higher net pricing, lower manufacturing costs driven by productivity and overhead 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 $2,013 million decreased by $1,012 million (33.5%) in the first six months of 2024 .

Diluted EPS attributable to Mondelēz International was $1.49 in the first six months of 2024, down $0.71 (32.3%) from the first six months of 2023.

Adjusted EPS (1) was $1.82 in the first six months of 2024, up $0.25 (15.9%) from the first six months of 2023.

Adjusted EPS on a constant currency basis (1) was $1.89 in the first six months of 2024, up $0.32 (20.4%) from the first six months of 2023.

For the Six Months Ended

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $2,866 million decreased by $1,143 million (28.5%) in the first nine months of 2024 .

Diluted EPS attributable to Mondelēz International was $2.12 in the first nine months of 2024, down $0.80 (27.4%) from the first nine months of 2023.

Adjusted EPS (1) was $2.80 in the first nine months of 2024, up $0.45 (19.1%) from the first nine months of 2023.

Adjusted EPS on a constant currency basis (1) was $2.89 in the first nine months of 2024, up $0.54 (23.0%) from the first nine months of 2023.

For the Nine Months Ended

September 30,

2024 2023 $ Change % Change

2 unchanged sentences

0.05 0.04 0.01

Mark-to-market gains from derivatives (2)

Intangible asset impairment charges (2)

0.08 0.02 0.06

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

0.09 (0.14) 0.23

Acquisition integration costs and

3 unchanged sentences

— 0.03 (0.03)

Net earnings from divestitures (2)

Operating results from divestitures (2)

— (0.13) 0.13

ERP System Implementation costs (2)

Remeasurement of net monetary position (2)

3 unchanged sentences

— (0.33) 0.33

Losses/(gains) on equity method investment transactions (4)

Losses/(gains) on equity method investment transactions including impairments (4)

0.50 (0.25) 0.75

11 unchanged sentences

Dividend income from marketable securities (0.01)

Change in equity method investment net earnings (4)

Change in income taxes (3)

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 six months ended June 30, 2024, taxes for the:

Simplify to Grow Program were $(17) million, mark-to-market gains from derivatives were $116 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 $23 million, gain on equity method investment transactions were zero and equity method investee items were zero.

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

Simplify to Grow Program were $(7) million, mark-to-market gains from derivatives were $29 million, acquisition integration costs and contingent consideration adjustments were $(22) million, divestiture-related costs were $(8) million, net earnings from divestitures were $28 million, remeasurement of net monetary position were zero, gain on marketable securities were $156 million, gain on equity method investment transactions were $124 million and equity method investee items were zero.

• For the nine months ended September 30, 2024, taxes for the:

Simplify to Grow Program were $(19) million, intangible asset impairment charges were $(40) million, mark-to-market losses from derivatives were $(28) million, acquisition integration costs and contingent consideration adjustments were $67 million, ERP System Implementation program were $(8) million, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $12 million, loss on equity method investment transactions were zero and equity method investee items were zero.

• 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, operating results from divestitures were $45 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.

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

16 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

16 unchanged sentences

Amortization of intangible assets (40) (38) (115) (114)

Acquisition-related costs (2) — (2) —

Operating income 1,153 1,379 4,734 4,309

2 unchanged sentences

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

— (189) — 607

Earnings before income taxes $ 1,132 $ 1,331 $ 4,664 $ 4,717

1 unchanged sentence

For the Three Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 125 156 (31) (19.9) %

For the Six Months Ended

For the Nine Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 426 429 (3) (0.7) %

Three Months Ended June 30:

Net revenues increased $4 million (0.3%), due to higher net pricing (7.7 pp), partially offset by unfavorable impact of currency-related items (4.2 pp) and unfavorable volume/mix (3.2 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.

Three Months Ended September 30:

Net revenues decreased $101 million (7.7%), due to an unfavorable impact of currency-related items (9.7 pp) and unfavorable volume/mix (3.9 pp), partially offset by higher net pricing (5.9 pp).

Currency-related items were unfavorable, net of the adjustment for extreme pricing in Argentina, due to 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 Brazilian real, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Mexican peso and Colombian peso.

dollar relative to most currencies in the region, primarily the Argentinean peso, Brazilian real and Mexican peso.

Overall, unfavorable volume/mix reflected consumer softness, primarily in Mexico.

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

Segment operating income increased $10 million (7.5%), primarily due to higher net pricing and lower manufacturing costs driven by productivity.

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

Six Months Ended June 30:

Net revenues increased $112 million (4.6%), due to higher net pricing (8.0 pp), partially offset by unfavorable volume/mix (2.2 pp) and unfavorable impact of currency-related items (1.2 pp).

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

Segment operating income decreased $31 million (19.9%), primarily due to higher raw material costs, unfavorable currency-related items, unfavorable volume/mix, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses, costs incurred for the ERP Systems Implementation program and intangible asset impairment charges incurred in 2024.

These unfavorable items were partially offset by higher net pricing, lower manufacturing costs driven by productivity, lower remeasurement loss on net monetary position and lower acquisition integration costs.

Nine Months Ended September 30:

Net revenues increased $11 million (0.3%), due to higher net pricing (7.2 pp), partially offset by unfavorable impact of currency-related items (4.2 pp) and unfavorable volume/mix (2.7 pp).

Currency-related items were unfavorable, net of the adjustment for extreme pricing in Argentina, due to currency translation rate changes.

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

dollar relative to several 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 Colombian peso.

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

dollar, primarily the Colombian peso and Mexican peso.

Unfavorable volume/mix reflected consumer softness, primarily in Mexico.

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

Segment operating income increased $28 million (10.3%), 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, unfavorable volume/mix, higher advertising and consumer promotion costs and higher acquisition integration costs.

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

Segment operating income decreased $3 million (0.7%), primarily due to higher raw material costs, unfavorable currency-related items, unfavorable volume/mix, higher advertising and consumer promotion costs, higher costs incurred for the Simplify to Grow Program, costs incurred for the ERP Systems Implementation program and intangible asset impairment charges incurred in 2024.

These unfavorable items were mostly offset by higher net pricing, lower manufacturing costs driven by productivity and lower remeasurement loss on net monetary position.

For the Three Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 335 302 33 10.9 %

For the Six Months Ended

For the Nine Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 1,036 869 167 19.2 %

Three Months Ended June 30:

Net revenues decreased $22 million (1.4%), due to unfavorable currency translation rate changes (5.6 pp) and unfavorable volume/mix (1.8 pp), partially offset by higher net pricing (6.0 pp).

Three Months Ended September 30:

Net revenues increased $60 million (3.4%), due to higher net pricing (5.1 pp) and favorable volume/mix (0.7 pp), partially offset by unfavorable currency translation rate changes (2.4 pp).

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

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

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, Egyptian pound and Chinese yuan.

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

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

dollar relative to several currencies in the region, including the Nigerian naira, Egyptian pound and Indian rupee, partially offset by the strength of several currencies relative to the U.S.

dollar, primarily the Australian dollar, Chinese yuan and South African rand.

Segment operating income increased $33 million (10.9%), primarily due to higher net pricing and lower manufacturing costs driven by productivity.

These favorable items were partially offset by higher advertising and consumer promotion costs, higher raw material costs, higher other selling, general and administrative expenses, unfavorable currency translation rate changes, unfavorable volume/mix, an intangible asset impairment charge incurred in 2024 and costs incurred for the ERP Systems Implementation program.

Nine Months Ended September 30:

Net revenues increased $49 million (0.9%), due to higher net pricing (5.8 pp), mostly offset by unfavorable currency translation rate changes (4.5 pp) and unfavorable volume/mix (0.4 pp).

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

Segment operating income increased $83 million (40.1%), primarily due to higher net pricing, lower manufacturing costs driven by productivity and lower other selling, general and administrative expenses.

These favorable items were partially offset by higher raw material costs, unfavorable currency translation rate changes, unfavorable volume/mix and higher advertising and consumer promotion costs.

Six Months Ended June 30:

Net revenues decreased $11 million (0.3%), due to unfavorable currency translation rate changes (5.5 pp) and unfavorable volume/mix (0.9 pp), mostly offset by higher net pricing (6.1 pp).

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, Egyptian pound and Australian dollar.

dollar relative to most currencies in the region, including the Nigerian naira, Egyptian pound, Chinese yuan, Indian rupee and Japanese yen.

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

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

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

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

Segment operating income increased $167 million (19.2%), primarily due to higher net pricing and lower manufacturing costs driven by productivity.

These favorable items were partially offset by higher raw material costs, unfavorable currency translation rate changes, higher advertising and consumer promotion costs and unfavorable volume/mix.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, unfavorable currency translation rate changes, unfavorable volume/mix, higher other selling, general and administrative expenses, an intangible asset impairment charge incurred in 2024 and costs incurred for the ERP Systems Implementation program.

For the Three Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 605 494 111 22.5 %

For the Six Months Ended

For the Nine Months Ended

September 30,

2024 2023 $ Change

2 unchanged sentences

Segment operating income 1,746 1,450 296 20.4 %

Three Months Ended June 30:

Net revenues decreased $52 million (1.8%), due to unfavorable volume/mix (3.1 pp), unfavorable currency translation rate changes (2.5 pp) and the impact of divestitures (2.0 pp), partially offset by higher net pricing (5.8 pp).

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, candy, gum, and refreshment beverages, partially offset by a gain in cheese & grocery.

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

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

dollar, including the British pound sterling and Polish zloty.

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $59 million.

Three Months Ended September 30:

Net revenues increased $237 million (7.7%), due to higher net pricing (7.6 pp), favorable currency translation rate changes (1.7 pp) and favorable volume/mix (0.5 pp), partially offset by the impact of divestitures (2.1 pp).

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

Segment operating income increased $101 million (22.5%), primarily due to higher net pricing, lower raw material costs including the benefit of realized gains from our forward purchasing and hedging contracts, lower remeasurement loss on net monetary position and lower divestiture-related costs.

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

Six Months Ended June 30:

Net revenues increased $9 million (0.1%), due to higher net pricing (6.9 pp), and the impact from short-term distributor agreements (0.4 pp ) , partially offset by unfavorable volume/mix (3.3 pp ) , unfavorable currency translation rate changes (2.0 pp) and the impact of divestitures (1.9 pp ).

Favorable currency translation rate changes reflected the strength of several currencies relative to the U.S.

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

dollar relative to a few currencies across the region, primarily the Turkish lira and Ukrainian hryvnya.

Overall, favorable volume/mix reflected improved product mix as volume trends rebounded from last quarter's customer price negotiation disruptions.

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

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $60 million.

Segment operating income increased $111 million (22.5%), primarily due to higher net pricing, favorable volume/mix, favorable currency translation rate changes, lower other selling, general and administrative expenses, lower divestiture-related costs and lower costs incurred for the Simplify to Grow Program.

These favorable items were partially offset by intangible asset impairment charges in 2024, higher manufacturing costs, lapping prior-year operating results from the developed market gum business divested in 2023, costs incurred for the ERP Systems Implementation program and higher fixed asset impairment charges.

Nine Months Ended September 30:

Net revenues increased $246 million (2.6%), due to higher net pricing (7.2 pp) and the impact from short-term distributor agreements (0.3 pp ) , partially offset by unfavorable volume/mix (2.1 pp ) , the impact of divestitures (2.0 pp ) and unfavorable currency translation rate changes (0.8 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, candy, gum and refreshment beverages, partially offset by a gain in cheese & grocery.

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 a few currencies relative to the U.S.

dollar, including the British pound sterling and Polish zloty.

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

Unfavorable volume/mix was driven by declines in biscuits & baked snacks, chocolate, candy, refreshment beverages and gum, 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 $174 million.

Segment operating income increased $185 million (19.4%), primarily due to higher net pricing, lower divestiture-related costs, lower manufacturing costs driven by productivity, lower remeasurement loss on net monetary position and lower acquisition integration costs.

These favorable items were partially offset by 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, higher incremental costs due to the war in Ukraine and higher raw material costs.

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

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

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

Segment operating income increased $296 million (20.4%), primarily due to higher net pricing, lower divestiture-related costs, lower remeasurement loss on net monetary position and lower acquisition integration costs.

These favorable items were partially offset by intangible asset impairment charges in 2024, higher other selling, general

and administrative expenses, lapping prior-year operating results from the developed market gum business divested in 2023, higher advertising and consumer promotion costs, unfavorable volume/mix, higher manufacturing costs, higher costs incurred for the Simplify to Grow Program, higher fixed asset impairment costs, unfavorable currency translation rate changes, costs incurred for the ERP Systems Implementation program and higher raw material costs.

North America

For the Three Months Ended

September 30,

2024 2023 $ Change

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Segment operating income 918 532 386 72.6 %

For the Six Months Ended

For the Nine Months Ended

September 30,

2024 2023 $ Change

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Segment operating income 2,012 1,678 334 19.9 %

Three Months Ended June 30:

Three Months Ended September 30:

Net revenues decreased $21 million (0.7%), due to the impact of divestitures (4.3 pp) and unfavorable currency translation rate changes (0.1 pp), partially offset by higher net pricing (2.0 pp) and favorable volume/mix (1.7 pp).

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $119 million.

Overall, favorable volume/mix reflected improved volume trends due to increased consumer demand in the U.S.

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

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

Segment operating income increased $386 million (72.6%), primarily due to a favorable contingent consideration adjustment related to Clif Bar as well as lower acquisition integration costs, higher net pricing, lapping prior-year intangible asset impairment charges, lower manufacturing costs due to productivity and favorable volume/mix.

These favorable items were partially offset by lapping prior-year operating results from the developed market gum business divested in 2023, higher raw material costs and costs incurred for the ERP Systems Implementation program.

Nine Months Ended September 30:

Net revenues decreased $171 million (2.1%), due to the impact of divestitures (3.8 pp), unfavorable volume/mix (0.5 pp) and unfavorable currency translation rate changes (0.1 pp), partially offset by higher net pricing (2.3 pp).

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $309 million.

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

Overall, unfavorable volume/mix reflected consumer softness in the U.S in the first half of 2024 though volume trends have improved in the third quarter of the year.

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

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

Segment operating income decreased $35 million (6.0%), 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, higher acquisition integration costs and contingent consideration adjustments and unfavorable volume/mix.

These unfavorable items were partially offset by higher net pricing, lower manufacturing costs due to productivity, lower other selling, general and administrative expenses and lower divestiture-related costs.

Six Months Ended June 30:

Net revenues decreased $150 million (2.8%), due to the impact of divestitures (3.6 pp) and unfavorable volume/mix (1.6 pp), partially offset by higher net pricing (2.4 pp).

The impact of our 2023 divestiture of the developed market gum business resulted in a year-over-year reduction in net revenues of $190 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.

Segment operating income decreased $52 million (4.5%), 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 and unfavorable volume/mix.

Segment operating income increased $334 million (19.9%), primarily due to a favorable contingent consideration adjustment related to Clif Bar as well as lower acquisition integration costs, higher net pricing, lower manufacturing costs due to productivity, lapping prior-year intangible asset impairment charges, lower other selling, general and administrative expenses, lower divestiture-related costs and lower fixed asset impairment charges.

These favorable items were partially offset by 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 and costs incurred for the ERP Systems Implementation program.

Liquidity and Capital Resources

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Our cash flow activity is noted below:

For the Six Months Ended

For the Nine Months Ended

September 30,

(in millions)

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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, largely due to operating gains, partially offset by unfavorable year-over-year working capital movements.

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

Net Cash (Used in)/Provided by Investing Activities

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

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 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 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 six months of 2024 compared to the same prior year period.

We paid dividends of $1,151 million in the first six months of 2024 and $1,055 million in the first six months of 2023.

The second quarter 2024 dividend of $0.425 per share, declared on May 22, 2024 for shareholders of record as of June 28, 2024, was paid on July 12, 2024.

On July 30, 2024, the Audit Committee, with authorization delegated from our Board of Directors, declared a quarterly cash dividend of $0.470 per share of Class A Common Stock, an increase of 11 percent.

This dividend is payable on October 14, 2024, to shareholders of record as of September 30, 2024.

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 nine months of 2024 compared to the same prior year period.

We paid dividends of $1,722 million in the first nine months of 2024 and $1,581 million in the first nine months of 2023.

The third quarter 2024 dividend of $0.470 per share, declared on July 30, 2024 for shareholders of record as of September 30, 2024, was paid on October 14, 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.

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

As of June 30, 2024 and December 31, 2023, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

As of September 30, 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.

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

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 June 30, 2024, $1.45 billion of the long-term financing authorization remained available.

Our total debt was $19.8 billion as of June 30, 2024 and $19.4 billion as of December 31, 2023.

Our debt-to-capitalization ratio was 0.42 at June 30, 2024 and 0.41 at December 31, 2023.

At June 30, 2024, the weighted-average term of our outstanding long-term debt was 7.4 years.

Our average daily commercial paper borrowings outstanding were $0.9 billion in the first six months of 2024 and $3 billion in the first six months of 2023.

At its July 2024 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 September 30, 2024, $1.5 billion of the long-term financing authorization remained available.

Our total debt was $19.8 billion as of September 30, 2024 and $19.4 billion as of December 31, 2023.

Our debt-to-capitalization ratio was 0.42 at September 30, 2024 and 0.41 at December 31, 2023.

At September 30, 2024, the weighted-average term of our outstanding long-term debt was 7.9 years.

Our average daily commercial paper borrowings outstanding were $1.0 billion in the first nine months of 2024 and $2.7 billion in the first nine months of 2023.

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

(“MIHN”), has outstanding debt.

The operations held by MIHN generated approximately 72.7% (or $12.8 billion) of the $17.6 billion of consolidated net revenue for the six months ended June 30, 2024.

The operations held by MIHN represented approximately 78.7% (or $21.8 billion) of the $27.7 billion of net assets as of June 30, 2024.

The operations held by MIHN generated approximately 72.8% (or $19.5 billion) of the $26.8 billion of consolidated net revenue for the nine months ended September 30, 2024.

The operations held by MIHN represented approximately 82.8% (or $23.1 billion) of the $27.9 billion of net assets as of September 30, 2024.

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

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

During the first six 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, energy, edible oils, grains and packaging costs.

During the first nine 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 energy, dairy, edible oils, grains 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.

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.

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 six 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.

During the first nine 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 175% higher on the last trading day of the second quarter of 2024 compared to the same day in the second quarter of 2023 and it is likely that prices will remain elevated for some time.

For example, the market price for cocoa beans on the Intercontinental Exchange in London was 79% higher on the last trading day of the third quarter of 2024 compared to the same day in the third 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.

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Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements.

Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control.

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:

Our future financial condition and results of operations, as well as any forward-looking statements, are

subject to change and to inherent risks and uncertainties, many of which are beyond our control.

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) and the instability of certain financial institutions;

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• risks from operating globally, including in emerging markets, such as political, economic and regulatory risks;

• the outcome and effects on us of legal and tax proceedings and government investigations, including the European Commission legal matter;

• the outcome and effects on us of legal and tax proceedings and government investigations;

• use of information technology and third party service providers;

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On January 28, 2021, the European Commission announced it had taken the next procedural step in its investigation and opened formal proceedings.

We have been cooperating with the investigation and are currently engaged in discussions with the European Commission in an effort to reach a negotiated, proportionate resolution to this matter.

As of December 31.

2022, we recorded an estimate of the possible cost to resolve this matter.

We have cooperated with the investigation and have reached a negotiated resolution to this matter.

We subsequently adjusted our accrual accordingly and fulfilled our payment obligation in August 2024.

Due to the unique nature of this matter, we believe it to be infrequent and

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These operating expenses will be excluded from our non-GAAP financial measures as they are nonrecurring and excluding those costs will better facilitate comparisons of our underlying operating performance across periods.

Costs incurred in the second quarter represent preliminary planning costs.

(17) 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.

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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