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Item 2. Management’s Discussion and Analysis

2025-04-29 compared with 2024-10-29 · 238 added, 579 removed, 345 unchanged (70% of the section changed)

8 unchanged sentences

Macroeconomic environment

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

We continue to observe significant market and geopolitical uncertainty, fluctuating consumer demand, inflationary pressures, supply constraints, trade and regulatory uncertainty 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.

5 unchanged sentences

We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets.

Trade and Regulatory Uncertainty

In many markets, including the United States, certain products or a portion of our products, including significant inputs, are imported from other jurisdictions.

As the current geopolitical environment remains unpredictable, we continue to monitor and evaluate the impact of proposed and enacted tariffs, including proposed and enacted retaliatory tariffs or other trade restrictions.

We are evaluating the potential impact of these developments as well as our ability to mitigate the impact, as they are expected to adversely impact our revenue and cost of goods sold.

If the provisions of certain proposed tariffs for which implementation is currently delayed are ultimately implemented as originally proposed, or if additional tariff actions are implemented, we would expect those adverse impacts on our business operations and financial performance to be significant.

For most products and materials imported to the United States from Mexico and Canada, we comply with the terms of the U.S.-Mexico-Canada Agreement ("USMCA") and are therefore not subject to tariffs on most products and materials imported from those jurisdictions.

However, the current trade environment continues to evolve rapidly and there can be no assurance that such products and materials will continue to be exempt.

The implementation of additional protectionist trade measures, and any further retaliatory actions taken in response, could result in increased costs and pricing pressures, disrupt consumer spending patterns, and impact market stability and consumer confidence, any or all of which could adversely affect our operating results.

For additional information, see the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2024, including the risk entitled “ We are subject to risks from changes to the trade policies and tariff and import/export regulations by the U.S.

and/or other foreign governments.

War in Ukraine

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 fully restore operations at our two manufacturing facilities, which were significantly damaged in March 2022.

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

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

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.

Refer to Items Affecting Comparability of Financial Results for additional information.

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

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.

We continue to consolidate both our Ukrainian and Russian subsidiaries.

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.

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

During the first quarter of 2025, Ukraine generated 0.4% and Russia generated 3.1% of our consolidated net revenue and during the first quarter of 2024, Ukraine generated 0.4% and Russia generated 2.6% of our consolidated net revenue.

The profitability of and the assets held by our Russian business continue to remain above historic 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 due to expropriation or further curtailment of our ability to conduct business operations in Russia.

In the event this were to occur, this could lead to the partial or full impairment of our Russian assets or deconsolidation of the operations in Russia in future periods, or the termination of our business operations, based on actions taken by Russia, other parties or us.

In the event this were to occur, this could lead to the partial or full impairment of our Russian assets or deconsolidation of our Russian operations in future periods, or the termination of and loss of revenue from our business operations, based on actions taken by Russia, other parties or us.

For additional information, see the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2024, including the risk entitled “ The war in Ukraine has impacted and could continue to impact our business operations, financial performance and results of operations.

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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 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.

Throughout 2024 and into 2025, 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 the conflict will have a significant impact in the future.

ERP System Implementation

In July 2024, our Board of Directors approved funding of $1.2 billion for a multi-year systems transformation program to upgrade our global ERP and supply chain systems (the “ERP System Implementation”).

The ERP System Implementation spending comprises both capital expenditures and operating expenses, of which a majority is expected to relate to operating expenses.

ERP System Implementation spending comprises both capital expenditures and operating expenses, of which a majority is expected to relate to operating expenses.

The operating expenses associated with the ERP System Implementation represent incremental transformational costs above the normal ongoing level of spending on information technology to support operations.

The ERP System Implementation program will be implemented by region in several phases with spending occurring over the next five years, with expected completion by year-end 2028.

The ERP System Implementation program will be implemented by region in several phases with spending occurring over the next four years, with expected completion by year-end 2028.

Refer to Non-GAAP financial measures for additional information.

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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 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 increases in excess of 26% year-over-year ("extreme pricing") in Argentina, from these measures beginning in the first quarter of 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.

Throughout the following MD&A discussion, we exclude 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.

Additionally within this MD&A discussion, "currency-related items" reflect the impacts of extreme pricing and year-over-year currency translation rate changes.

Refer to Non-GAAP financial measures for additional information.

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

• Organic Net Revenue:

In total, unfavorable currency-related items of $120 million (1.4 pp) were driven by unfavorable currency translation rate changes of $393 million (4.4 pp), partially offset by the adjustment for extreme pricing of $273 million (3.0 pp).

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

• Adjusted Operating Income:

Unfavorable currency-related items of $16 million were driven by unfavorable currency translation rate changes of $64 million, partially offset by the adjustment for extreme pricing of $48 million.

• Adjusted EPS:

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:

Currency-related items impacted our non-GAAP financial measures for the three months ended March 31, 2025 as follows:

• Organic Net Revenue:

In total, unfavorable currency-related items of $468 million (1.7 pp) were driven by unfavorable currency translation rate changes of $1,450 million (5.5 pp), partially offset by the adjustment for extreme pricing of $982 million (3.8 pp).

In Emerging Markets, unfavorable currency-related items of $529 million (5.1 pp) were driven by unfavorable currency translation rate changes of $1,511 million (14.5 pp), partially offset by the adjustment for extreme pricing of $982 million (9.4 pp).

In Developed Markets, favorable currency-related items of $61 million (0.4 pp) were driven by favorable currency translation rate changes.

In the first quarter of 2025, unfavorable currency-related items of $342 million (3.7 pp) were driven by unfavorable currency translation rate changes of $365 million (4.0 pp), partially offset by extreme pricing of $23 million (0.3 pp).

In Emerging Markets, unfavorable currency-related items of $252 million (6.8 pp) were driven by unfavorable currency translation rate changes of $275 million (7.4 pp),

partially offset by extreme pricing of $23 million (0.6 pp).

In Developed Markets, unfavorable currency-related items of $90 million (1.6 pp) were driven by unfavorable currency translation rate changes.

• Adjusted Operating Income:

Unfavorable currency-related items of $143 million were driven by unfavorable currency translation rate changes of $373 million, partially offset by the adjustment for extreme pricing of $230 million.

In the first quarter of 2025, unfavorable currency-related items of $27 million were driven by unfavorable currency translation rate changes of $31 million, partially offset by extreme pricing of $4 million.

• Adjusted EPS:

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.

In the first quarter of 2025, unfavorable currency-related items of $0.02 were driven by unfavorable currency translation rate changes, as extreme pricing had an immaterial impact.

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.

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.

During the fourth quarter of 2024 , we completed the acquisition 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.

Investment Transactions

Keurig Dr Pepper Transactions (Nasdaq:

During the first quarter of 2023, we sold approximately 30 million shares of KDP, which reduced our ownership interest to 3.2%.

We recorded a pre-tax gain on equity method transactions of $493 million (or $368 million after-tax).

Our reduction in ownership to below 5% resulted in a change of accounting from equity method investment accounting to accounting for equity interests with readily determinable fair values ("marketable securities").

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

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

Equity Method Investment Transactions

JDE Peet’s Transactions (Euronext Amsterdam:

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.

During the fourth quarter of 2024, we sold our remaining 85.9 million shares to JAB Holdings Company.

For additional information, refer to Note 6, Equity Method Investments.

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.

During the third quarter of 2024, we entered into an annuity agreement with two third party insurance companies for the Mondelēz Global LLC Retirement Plan (“MDLZ Global Plan”), the pension plan for US salaried employees.

The annuity agreement featured a buy-in of the plan assets with an option to elect a future buy-out conversion.

The MDLZ Global Plan was terminated on December 31, 2024, and we currently intend to execute the buy-out conversion in the second quarter of 2025.

Refer to Note 9, Benefit Plans for additional information.

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

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.

Financial Outlook

We seek to achieve profitable, long-term growth and manage our business to attain this goal using our key operating metrics:

Organic Net Revenue, Adjusted Operating Income and Adjusted EPS.

We use these non-GAAP financial metrics and related computations, particularly growth in profit dollars, to evaluate and manage our business and to plan and make near- and long-term operating and strategic decisions.

As such, we believe these metrics are useful to investors as they provide supplemental information in addition to our U.S.

Generally Accepted Accounting Principles ("U.S.

GAAP") financial results.

We believe it is useful to provide investors with the same financial information that we use internally to make comparisons of our historical operating results, identify trends in our underlying operating results and evaluate our business.

We believe our non-GAAP financial measures should always be considered in relation to our U.S.

GAAP results.

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.

Numerous countries have now enacted the Organization of Economic Cooperation and Development’s model rules on a global minimum tax, effective for 2024.

Important details of these minimum tax regimes are still being considered.

Based on the guidance available thus far, this legislation did not have a material impact on our condensed consolidated financial statements but we will continue to evaluate it as additional guidance and clarification becomes available.

Summary of Results

• 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.

• Net revenues increased 0.2% to $9.3 billion in the first quarter of 2025 as compared to the same period in the prior year.

Net revenue growth in the first quarter of 2025 was driven by higher net pricing and incremental net revenue from our acquisition of Evirth, partially offset 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 lapping prior-year 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 3.1% to $9.6 billion in the first quarter of 2025 as compared to the same period in the prior year.

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

Organic Net Revenue is reported 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 (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.

• Diluted EPS attributable to Mondelēz International decreased (70.2)% to $0.31 in the first quarter of 2025 as compared to the same period in the prior year.

The decrease was driven by an unfavorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, a decrease in Adjusted EPS and costs incurred for the ERP System Implementation program.

These unfavorable items were partially offset by lapping a prior-year equity method investment impairment, lapping prior-year costs for the completed Simplify to Grow Program, lower acquisition integration costs and contingent consideration adjustments and lower losses on remeasurement of net monetary position in highly inflationary countries.

• Adjusted EPS, a non-GAAP financial measure, decreased (20.4)% to $0.74 in the first quarter of 2025 as compared to the same period in the prior year.

On a constant currency basis, Adjusted EPS decreased (18.3)% to $0.76 in the first quarter of 2025 as compared to the same period in the prior year.

The decrease in Adjusted EPS was driven by operating declines, higher interest and other expense and unfavorable currency-related items, partially offset by fewer shares outstanding, lower taxes and the impact from an acquisition.

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 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

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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.

Refer to the Consolidated Results of Operations – Net Earnings and Earnings per Share Attributable to Mondelēz International table and the Non-GAAP Financial Measures section for the after-tax per share impacts and definitions of these items.

For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

See Note 2025 2024

1 unchanged sentence

Simplify to Grow Program Note 13 $ 2 $ (53)

Restructuring charges $ 5 $ (16) $ (40) $ (48)

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

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

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

Note 8 (673) 1,124

Acquisition and divestiture-related costs:

Acquisition integration costs and

contingent consideration adjustments

328 (68) 249 (143)

Acquisition-related costs (2) — (2) —

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

Incremental costs due to war in Ukraine (2)

Acquisition-related items

Note 2 8 (43)

European Commission legal matter Note 12 — — 3 —

Divestiture-related items

Incremental costs due to war in Ukraine

ERP System Implementation costs (2)

(29) — (38) —

Remeasurement of net monetary position Note 1 (7) (8)

1 unchanged sentence

Note 9 (2) (2)

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

Initial impacts from enacted tax law changes Note 14 2 2

Gain on marketable securities

Note 6 — — — 593

(Loss)/gain on equity method investment transactions including impairments (4)

Loss on equity method investment transactions (3)

Note 6 — (665)

Equity method investee items (5)

(5) (38) (52) (82)

Effective tax rate Note 14 28.3 % 23.6 %

(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 (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) ERP System Implementation program costs represent incremental operating expenses above the normal ongoing level of spending on information technology to support operations.

These expenses include third-party consulting fees, direct labor costs associated with the program, accelerated depreciation of our existing SAP financial systems and various other expenses, all associated with the implementation of our information technology upgrades.

(4) (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.

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

(1) Includes impacts recorded in operating income and interest expense and other, net in the accompanying condensed consolidated statements of earnings.

(2) Refer to Recent Developments and Significant Items Affecting Comparability - ERP System Implementation , for more information.

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

Consolidated Results of Operations

Three Months Ended September 30

Three Months Ended March 31

For the Three Months Ended

September 30,

2025 2024 $ Change

8 unchanged sentences

0.31 1.04 (0.73) (70.2) %

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) .

Net Revenues – Net revenues increased $23 million (0.2%) to $9,313 million in the first quarter of 2025, and Organic Net Revenue (1) increased $291 million (3.1%) to $9,556 million.

Emerging markets net revenues decreased (0.3)% and emerging markets Organic Net Revenue increased 3.9% (1) .

Developed markets net revenues increased 0.6% and developed markets Organic Net Revenue increased 2.6% (1) .

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International

Three Months Ended September 30, 2024

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

Currency-related items

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

Three Months Ended September 30, 2023

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

Divestitures (1) (178) (179)

Organic (Non-GAAP) $ 3,526 $ 5,324 $ 8,850

Three Months Ended March 31, 2025

Reported (GAAP) $ 3,723 $ 5,590 $ 9,313

Divestitures - pp 3.5 pp 2.1 pp

Acquisitions (99) — (99)

Currency-related items

4.8 (1.0) 1.4 pp

Organic (Non-GAAP) $ 3,876 $ 5,680 $ 9,556

Vol/Mix (1.0)pp 1.0 pp 0.3 pp

Pricing 5.9 4.6 5.1

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

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.

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 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

(in millions)

Operating Income $ 1,153 $ 1,379 $ (226) (16.4) %

Simplify to Grow Program (2)

Intangible asset impairment charges (3)

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

Acquisition integration costs and

contingent consideration adjustments (5)

(328) 68 (396)

Acquisition-related costs (5)

Divestiture-related costs (5)

Operating results from divestitures (5)

Incremental costs due to war in Ukraine (6)

ERP System Implementation costs (7)

Remeasurement of net monetary position (6)

Adjusted Operating Income (1)

$ 1,738 $ 1,438 $ 300 20.9 %

Currency-related items

Adjusted Operating Income (constant currency) (1)

$ 1,754 $ 1,438 $ 316 22.0 %

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

Higher net pricing

Higher input costs

Favorable volume/mix 8

Higher selling, general and administrative expenses

Higher amortization of intangible assets

Higher asset impairment charges

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

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

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

(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.

(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 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

Diluted EPS attributable to Mondelēz International $ 0.63 $ 0.72 $ (0.09) (12.5) %

Simplify to Grow Program (2)

Intangible asset impairment charges (2)

0.08 0.02 0.06

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

0.42 (0.01) 0.43

Acquisition integration costs and

contingent consideration adjustments (2)

(0.18) 0.04 (0.22)

Operating results from divestitures (2)

— (0.05) 0.05

ERP System Implementation costs (2)

Remeasurement of net monetary position (2)

0.01 0.02 (0.01)

Initial impacts from enacted tax law changes (3)

(0.01) 0.01 (0.02)

Gain on marketable securities (4)

— (0.02) 0.02

Equity method investee items (5)

0.01 0.03 (0.02)

Adjusted EPS (1)

$ 0.99 $ 0.77 $ 0.22 28.6 %

Currency-related items

Adjusted EPS (constant currency) (1)

$ 0.99 $ 0.77 $ 0.22 28.6 %

Key Drivers of Adjusted EPS (constant currency) $ Change

Increase in operations $ 0.17

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, 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.

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

(4) Refer to Note 6, Investments , for additional information on gains/losses (including non-cash impairment charges) 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 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.

Nine Months Ended September 30:

For the Nine Months Ended

September 30,

2024 2023 $ Change

(in millions, except per share data)

Net revenues $ 26,837 $ 26,702 $ 135 0.5 %

Operating income 4,734 4,309 425 9.9 %

Net earnings attributable to

Mondelēz International

2,866 4,009 (1,143) (28.5) %

Diluted earnings per share attributable to

Mondelēz International

2.12 2.92 (0.80) (27.4) %

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 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:

Markets Developed

Markets Mondelēz

International

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2024

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

1 unchanged sentence

(3) (22) (25)

Currency-related items

Organic (Non-GAAP) $ 3,730 $ 5,535 $ 9,265

Nine Months Ended September 30, 2023

Reported (GAAP) (0.3) % 0.6 % 0.2 %

Divestitures (4) (479) (483)

Organic (Non-GAAP) $ 10,427 $ 15,792 $ 26,219

Reported (GAAP) 0.9 % 0.3 % 0.5 %

Divestitures - pp 3.0 pp 1.9 pp

Short-term distributor agreements

— (0.1) (0.1)

0.1 0.4 0.3 pp

Acquisitions (2.7) — (1.1)

Currency-related items

5.1 (0.4) 1.7

Organic (Non-GAAP) 3.9 % 2.6 % 3.1 %

2 unchanged sentences

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

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.

Net revenue increase of 0.2% was driven by our underlying Organic Net Revenue growth of 3.1% and the impact of an acquisition, partially offset by unfavorable currency-related items and lapping prior-year net revenue from a short-term distributor agreement related to the sale of our developed market gum business.

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.

Higher net pricing was due to the benefit of carryover pricing from 2024 as well as the effects of input cost-driven pricing actions taken during the first three months of 2025.

Higher net pricing was reflected in all regions except North America.

Unfavorable volume/mix was experienced across all regions, driven by volume declines reflecting pricing elasticity impacts in Europe, AMEA and Latin America as well as biscuit & baked snacks category softness in North America.

The November 1, 2024 acquisition of Evirth added incremental net revenues of $99 million (constant currency basis) in the first quarter of 2025.

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.

Currency-related items decreased net revenues by $342 million, driven by unfavorable currency translation rate changes, partially offset by 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 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 Nine Months Ended

September 30,

dollar relative to most currencies, primarily the Brazilian real, Mexican peso, euro, Argentinean peso, Egyptian pound, Indian rupee, Canadian dollar, Australian dollar and Turkish lira.

The lapping of the prior-year short-term distributor

agreement related to the sale of our developed market gum business, which ended in the first quarter of 2024, resulted in a year-over-year incremental reduction in net revenue of $25 million.

Operating Income – Operating income decreased $2,047 million (75.1%) to $680 million in the first quarter of 2025.

Adjusted Operating Income (1) decreased $335 million (19.6%) to $1,375 million and Adjusted Operating Income on a constant currency basis (1) decreased $308 million (18.0%) to $1,402 million due to the following:

For the Three Months Ended

2025 2024 $ Change % Change

2 unchanged sentences

Simplify to Grow Program (2)

Intangible asset impairment charges (3)

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

669 (1,124) 1,793

Acquisition integration costs and

contingent consideration adjustments (5)

(249) 143 (392)

Acquisition-related costs (5)

Divestiture-related costs (5)

Operating results from divestitures (5)

Operating income from short-term distributor agreements

European Commission legal matter

Acquisition-related items (4)

Divestiture-related items (4)

Operating results from short-term distributor agreements (1)

Incremental costs due to war in Ukraine (5)

10 unchanged sentences

Unfavorable volume/mix (215)

Higher selling, general and administrative expenses

Higher amortization of intangible assets

Lower selling, general and administrative expenses

Impact from acquisitions (4)

Lower amortization of intangible assets

Lower asset impairment charges

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 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.

(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.

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

(2) Refer to Note 13, Restructuring Program, for additional information.

(3) Refer to Note 8, 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 foreign currency derivative contracts economically hedging forecasted transactions.

(4) Refer to Note 2, Acquisitions and Divestitures , for additional information on the November 1, 2024 acquisition of Evirth and divestiture-related costs.

(5) Refer to Recent Developments and Significant Items Affecting Comparability - War in Ukraine , for information on accounting impacts resulting from the war in Ukraine.

(6) Refer to Recent Developments and Significant Items Affecting Comparability - ERP System Implementation , for more information.

(7) Refer to Note 1, Basis of Presentation , for information on our application of highly inflationary accounting for Argentina, Türkiye, Egypt and Nigeria.

During the first quarter of 2025, we realized higher net pricing, which was more than offset by increased input costs and unfavorable volume/mix.

Higher net pricing, which included the carryover impact of pricing actions taken in 2024 as well as the effects of input cost-driven pricing actions taken during the first three months of 2025, was reflected across all regions except North America.

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 energy, dairy, 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 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, 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 $2,866 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,

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

Overall, unfavorable volume/mix was primarily due to volume declines, reflected across all regions.

Total selling, general and administrative expenses decreased $227 million from the first quarter of 2024, which was net of benefits from a number of factors noted in the table above, including in part, a favorable currency-related impact to expenses, favorable contingent consideration adjustments related to the Clif Bar acquisition and lower acquisition integration costs, lapping prior-year implementation costs for the completed Simplify to Grow Program, lapping prior-year divestiture-related costs and the impact from acquisitions, marginally offset by costs incurred for the ERP System Implementation program.

Excluding these factors, selling, general and administrative expenses decreased $132 million from the first quarter of 2024.

The decrease was driven primarily by lower advertising and consumer promotion costs and lower overhead costs.

Unfavorable currency-related items, net of extreme pricing in Argentina, decreased operating income by $27 million primarily due to the strength of the U.S.

dollar relative to most currencies, including the Mexican peso, Brazilian real, euro, Australian dollar, Egyptian pound, Indian rupee, Chinese yuan and Canadian dollar.

Operating income margin decreased from 29.4% in the first quarter of 2024 to 7.3% in the first quarter of 2025.

The decrease in operating income margin was driven primarily by an unfavorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, lower Adjusted Operating Income margin and costs incurred for the ERP System Implementation program, partially offset by lower acquisition integration costs and contingent consideration adjustments and lapping prior-year costs for the completed Simplify to Grow Program.

Adjusted Operating Income margin decreased from 18.5% for the first quarter of 2024 to 14.8% for the first quarter of 2025.

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

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $402 million decreased by $1,010 million (71.5%) in the first quarter of 2025.

Diluted EPS attributable to Mondelēz International was $0.31 in the first quarter of 2025, down $0.73 (70.2%) from the first quarter of 2024.

Adjusted EPS (1) was $0.74 in the first quarter of 2025, down $0.19 (20.4%) from the first quarter of 2024.

Adjusted EPS on a constant currency basis (1) was $0.76 in the first quarter of 2025, down $0.17 (18.3%) from the first quarter of 2024.

For the Three Months Ended

2025 2024 $ Change % Change

2 unchanged sentences

— 0.03 (0.03)

Intangible asset impairment charges (2)

0.08 0.02 0.06

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

0.41 (0.66) 1.07

Acquisition integration costs and

contingent consideration adjustments (2)

(0.13) 0.08 (0.21)

Divestiture-related costs (2)

— 0.03 (0.03)

Operating results from divestitures (2)

Acquisition-related items (2)

— 0.02 (0.02)

2 unchanged sentences

— 0.01 (0.01)

Initial impacts from enacted tax law changes (3)

Gain on marketable securities (4)

— (0.33) 0.33

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

0.50 (0.25) 0.75

Equity method investee items (5)

Loss on equity method investment transactions (3)

— 0.49 (0.49)

5 unchanged sentences

Key Drivers of Adjusted EPS (constant currency) $ Change

Increase in operations $ 0.47

Change in benefit plan non-service income 0.01

Decrease in operations

Impact from acquisitions (2)

Change in interest and other expense, net

Dividend income from marketable securities (0.01)

Change in equity method investment net earnings (4)

Change in income taxes (4)

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, 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.

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

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

(6) Excludes the currency impact on interest expense related to our 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.

• For the three months ended March 31, 2025, taxes for the:

mark-to-market losses from derivatives were $(136) million, acquisition integration costs and contingent consideration adjustments were $5 million and ERP System Implementation program were $(8) million.

• 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 was zero and loss on equity method investment transactions was zero.

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

(3) Refer to Note 6, Equity Method Investments , for additional information on gains/losses on equity method investment transactions.

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

(5) 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,

2024 2023 2024 2023

(in millions)

8 unchanged sentences

Latin America $ 139 $ 157

AMEA 335 302 1,036 869

Europe 462 591

4 unchanged sentences

Amortization of intangible assets (37) (38)

Acquisition-related costs (2) — (2) —

Operating income $ 680 $ 2,727

Benefit plan non-service income 25 19 76 60

Interest and other expense, net (46) (66) (146) (258)

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

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

Latin America

For the Three Months Ended

September 30,

2025 2024 $ Change

2 unchanged sentences

Segment operating income 139 157 (18) (11.5) %

For the Nine Months Ended

September 30,

2024 2023 $ Change

(in millions)

Net revenues $ 3,755 $ 3,744 $ 11 0.3 %

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

Three Months Ended September 30:

Three Months Ended March 31:

Net revenues decreased $116 million (8.8%), due to an unfavorable impact of currency-related items (12.7 pp) and unfavorable volume/mix (2.5 pp), partially offset by higher net pricing (6.4 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 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, candy, cheese & grocery and refreshment beverages, partially offset by gains in biscuits & baked snacks and gum.

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.

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.

Currency-related items were unfavorable, net of 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, 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, 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.

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

Unfavorable volume/mix reflected volume declines due to pricing elasticity impacts, primarily in Mexico and Argentina.

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

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

Segment operating income decreased $18 million (11.5%), primarily due to higher raw material costs, unfavorable volume/mix, higher other selling, general and administrative expenses, costs incurred for the ERP System Implementation program and unfavorable currency-related items.

These unfavorable items were partially offset by higher pricing, lower manufacturing costs driven by productivity, lower advertising and consumer promotion costs and lower acquisition integration costs.

For the Three Months Ended

September 30,

2025 2024 $ Change

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Segment operating income 343 411 (68) (16.5) %

For the Nine Months Ended

September 30,

2024 2023 $ Change

(in millions)

Net revenues $ 5,388 $ 5,339 $ 49 0.9 %

Segment operating income 1,036 869 167 19.2 %

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 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.

Three Months Ended March 31:

Net revenues increased $66 million (3.4%), due to the impact of an acquisition (5.1 pp) and higher net pricing (4.8 pp), partially offset by unfavorable currency translation rate changes (3.5 pp) and unfavorable volume/mix (3.0 pp).

The November 1, 2024 acquisition of Evirth added incremental net revenues of $99 million (constant currency basis) in the first quarter of 2025.

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

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, 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, 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, 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.

dollar relative to most currencies in the region, including the Egyptian pound, Indian rupee, and Australian dollar.

Unfavorable volume/mix reflected volume declines due to pricing elasticity impacts.

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

Segment operating income decreased $68 million (16.5%), primarily due to higher raw material costs, unfavorable volume/mix, higher other selling, general and administrative expenses, unfavorable currency translation rate changes, higher acquisition integration costs and contingent consideration adjustments and costs incurred for the ERP Systems Implementation program.

These unfavorable items were partially offset by higher net pricing, lower advertising and consumer promotion costs, lower manufacturing costs driven by productivity and the impact from our Evirth acquisition.

For the Three Months Ended

September 30,

2025 2024 $ Change

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Segment operating income 462 591 (129) (21.8) %

For the Nine Months Ended

September 30,

2024 2023 $ Change

(in millions)

Net revenues $ 9,565 $ 9,319 $ 246 2.6 %

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

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.

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 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.

Three Months Ended March 31:

Net revenues increased $182 million (5.4%), due to higher net pricing (13.4 pp), partially offset by unfavorable volume/mix (4.5 pp), unfavorable currency translation rate changes (2.7 pp) and lapping the prior-year net revenue from a short-term distributor agreements (0.8 pp).

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

Unfavorable volume/mix reflected volume declines due to pricing elasticity impacts.

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

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.

dollar relative to most currencies across the region, primarily the euro and Turkish lira.

The lapping of the prior-year short-term distributor agreement related to the sale of our developed market gum business, which ended in the first quarter of 2024, resulted in a year-over-year incremental reduction in net revenue of $25 million.

Segment operating income decreased $129 million (21.8%), primarily due to higher raw material costs, unfavorable volume/mix, higher other selling, general and administrative expenses and costs incurred for the ERP System Implementation program.

These unfavorable items were partially offset by higher net pricing, lower advertising and consumer promotion costs, lapping prior-year costs for the completed Simplify to Grow Program, lower manufacturing costs driven by productivity and lower divestiture-related costs.

North America

For the Three Months Ended

September 30,

2025 2024 $ Change

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Segment operating income 485 549 (64) (11.7) %

For the Nine Months Ended

September 30,

2024 2023 $ Change

(in millions)

Net revenues $ 8,129 $ 8,300 $ (171) (2.1) %

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

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 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.

Three Months Ended March 31:

Net revenues decreased $109 million (4.1%), due to unfavorable volume/mix (3.1 pp), unfavorable currency translation rate changes (0.5 pp)and lower net pricing (0.5 pp).

Unfavorable volume/mix was driven by declines in biscuits & baked snacks, primarily due to category softness in the U.S., and candy, slightly offset by a gain in chocolate.

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

dollar relative to the Canadian dollar.

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

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.

Lower net pricing in biscuits & baked snacks was partially offset by higher net pricing in candy and chocolate.

Segment operating income decreased $64 million (11.7%), primarily due to higher raw material costs, unfavorable volume/mix, lower net pricing and costs incurred for the ERP System Implementation program.

These unfavorable items were partially offset by a favorable contingent consideration adjustment related to Clif Bar as well as lower acquisition integration costs, lower advertising and consumer promotion costs, lower other selling, general and administrative expenses and lower manufacturing costs due to productivity.

Liquidity and Capital Resources

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

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.

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Our cash flow activity is noted below:

For the Nine Months Ended

September 30,

For the Three Months Ended

(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, including the payment of the European Commission matter.

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

Net Cash (Used in)/Provided by Investing Activities

The reduction in net cash used in/provided by investing activities was largely driven by lapping prior year proceeds from the KDP and JDEP share sales (refer to Note 6, Investments ) combined with higher capital expenditures.

The decrease in net cash provided by operating activities was primarily due to lower cash-basis net earnings, combined with higher year-over-year working capital movements.

Net Cash Used in Investing Activities

The reduction in net cash used in investing activities was largely driven by lapping prior year investment contributions.

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 2025 capital expenditures to be up to $1.3 billion, including capital expenditures in connection with 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 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 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 2025 compared to the same prior year period.

We paid dividends of $623 million in the first three months of 2025 and $578 million in the first three months of 2024.

The first quarter 2025 dividend of $0.470 per share, declared on February 13, 2025 for shareholders of record as of March 31, 2025, was paid on April 14, 2025.

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.

We anticipate that the 2024 distributions will be characterized as dividends under U.S.

federal income tax rules.

The final determination will be made on an IRS Form 1099–DIV issued in early 2025.

As discussed in Note 10, Commitments and Contingencies , we enter into third-party guarantees primarily to cover the long-term obligations of our vendors.

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

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

As of March 31, 2025 and December 31, 2024, we had no material third-party guarantees recorded on our condensed consolidated balance sheets.

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 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.

At our December 2024 meeting, the Board of Directors approved a new $4 billion long-term financing authorization that replaced the prior long-term financing authorization of $2 billion.

As of March 31, 2025, $4 billion of the long-term financing authorization remained available.

Our total debt was $19.5 billion as of March 31, 2025 and $17.7 billion as of December 31, 2024.

Our debt-to-capitalization ratio was 0.43 at March 31, 2025 and 0.40 at December 31, 2024.

At March 31, 2025, the weighted-average term of our outstanding long-term debt was 7.6 years.

Our average daily commercial paper borrowings outstanding were $1.7 billion in the first three months of 2025 and $1.0 billion in the first three months of 2024.

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

(“MIHN”), has outstanding debt.

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.

The operations held by MIHN generated approximately 75.3% (or $7.0 billion) of the $9.3 billion of consolidated net revenue for the three months ended March 31, 2025.

The operations held by MIHN represented approximately 88.8% (or $22.9 billion) of the $25.8 billion of consolidated net assets as of March 31, 2025.

Refer to Note 7, 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 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.

During the first three months of 2025, the primary drivers of the increase in our aggregate commodity costs were higher cocoa, dairy, packaging, energy, nuts and other ingredient costs, as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower sugar, grains and edible oils 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).

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, including trade policies, governmental agricultural or other programs affect the availability and cost of raw materials and agricultural materials used in our products.

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 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.

During the first three months of 2025, 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 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.

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

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.

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 and are amplified by current and potential trade and tariff actions affecting the countries where we operate.

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;

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

• risks from operating globally including geopolitical, trade, tariff and regulatory uncertainties affecting developed and emerging markets;

• volatility of cocoa and other commodity input costs, our ability to effectively hedge such costs and the availability of commodities;

• 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;

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• weakness in consumer spending and/or changes in consumer preferences and demand and our ability to predict, identify, interpret and meet these changes;

• 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;

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• unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and supply, commodity, labor and transportation constraints;

• our ability to identify, complete, implement, manage and realize the full extent of the benefits, cost savings, efficiencies and/or synergies presented by strategic transactions and initiatives, such as our ERP System Implementation program;

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

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

• changes in the assumptions on which the restructuring program is based;

• our ability to identify, complete, manage and realize the full extent of the benefits, cost savings, efficiencies and/or synergies presented by strategic acquisitions and other transactions as well as other strategic initiatives, such as our ERP System Implementation program;

• our investments and our ownership interests in those investments;

• the impact of climate change on our supply chain and operations;

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• changes in currency exchange rates, controls and restrictions;

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

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

• pension costs;

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Non-GAAP Financial Measures

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

The adjustments generally fall within the following categories:

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 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.

We use non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of business performance and as a factor in determining incentive compensation.

We believe that non-GAAP financial measures, when used in connection with results reported in accordance with U.S.

GAAP, provide additional information to facilitate comparisons of our historical operating results and to enable a more comprehensive understanding of trends in our underlying operating results.

We also believe that presenting these measures allows investors to view our performance using the same measures that management and our Board of Directors use in evaluating our business performance and trends.

However, non-GAAP financial measures should be considered in addition to, and not as substitutes for, financial information prepared in accordance with U.S.

In addition, the company’s non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

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 and corresponding metrics, listed below, reflect how we evaluate our current and prior-year operating results.

As new events or circumstances arise, these definitions could change.

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

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) .

GAAP financial measure) excluding, when they occur, the impacts of acquisitions, divestitures (2) , short-term distributor agreements related to the sale of a business (3) and currency-related items (4) .

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

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

Organic Net Revenue growth is presented on a consolidated and segment basis and for the company’s emerging markets and developed markets., and these underlying measures are also reconciled to the most comparable U.S.

GAAP financial measures above.

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

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

GAAP financial measure) excluding the impacts of the Simplify to Grow Program (5) ;

GAAP financial measure) excluding, when they occur, the impacts of the Simplify to Grow Program (5) ;

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

divestiture (2) or acquisition gains or losses, divestiture-related costs (6) , acquisition-related costs (7) , and acquisition integration costs and contingent consideration adjustments (8) ;

inventory step-up charges (9) ;

the operating results of divestitures (2) ;

divestiture-related items (2) ;

acquisition-related items (6) ;

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

remeasurement of net monetary position (10) ;

mark-to-market impacts from commodity, forecasted currency and equity method investment transaction derivative contracts (11) ;

impact from resolution of tax matters (12) ;

remeasurement of net monetary position of highly inflationary countries (7) ;

mark-to-market impacts from commodity and foreign currency derivative contracts economically hedging forecasted transactions (8) ;

impact from resolution of indirect tax matters;

2017 malware incident net recoveries;

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

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

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

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

mark-to-market unrealized gains or losses and realized gains or losses from marketable securities (17) ;

gains or losses on marketable securities transactions (13) ;

initial impacts from enacted tax law changes (14) ;

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 (19) .

and gains or losses on equity method investment transactions (15) .

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

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(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.

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.

Beginning in Q2 2024, we added to the non-GAAP definitions the exclusion of operating expenses associated with the ERP System Implementation program as they represent incremental transformational costs above the normal ongoing level of spending on information technology to support operations (see footnote (16) below).

(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.

(2) Divestiture-related items include operating results from divestitures, divestiture-related costs and gains/(losses) on divestitures.

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

Divestiture-related costs include costs incurred in relation to the preparation and completion of our divestitures (including one-time costs such as severance related to elimination of stranded costs) as well as costs incurred associated with our publicly announced processes to sell businesses.

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

(3) We 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.

(4) We evaluate the operating performance of the company and its international subsidiaries on a constant currency basis.

The company's non-GAAP measures presented on a constant currency basis exclude the effects of currency translation rate changes and, beginning in the first quarter of 2024, extreme pricing increases in Argentina.

We determine constant currency operating results 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.

Costs that do not meet the program objectives are not reflected in the non-GAAP adjustments.

(6) Divestiture-related costs, which includes costs incurred in relation to the preparation and completion (including one-time costs such as severance related to elimination of stranded costs) of our divestitures as defined in footnote (2), also includes costs incurred associated with our publicly announced processes to sell businesses.

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

(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.

(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 recurring employee compensation expense.

(5) Simplify to Grow Program reflects restructuring charges incurred under the company’s Simplify to Grow Program to reduce both its supply chain and overhead costs.

It comprises charges, such as severance, asset write-downs, and other costs of implementing that program, partially offset by gains on sales of assets disposed of in connection with the program.

The company completed its Simplify to Grow Program in the fourth quarter of 2024.

Following the completion of the program any adjustments to the liability of previously recorded charges will be reflected here.

(6) Acquisition-related items include acquisition-related costs, acquisition integration costs and contingent consideration adjustments, inventory step-ups and gains from acquisitions.

Acquisition-related costs include third-party advisor, investment banking and legal fees, one-time compensation expense related to the buyout of non-vested employee stock ownership plan shares and realized gains or losses from hedging activities associated with acquisition funds.

Acquisition integration costs and contingent consideration adjustments include one-time costs related to the integration of acquisitions as well as any adjustments made to contingent compensation liabilities for earn-outs related to acquisitions that do not relate to recurring employee compensation expense.

See Note 8, Financial Instruments - Fair Value of Contingent Consideration for additional information.

Other acquisition-related items include incremental costs from inventory step-ups associated with acquired companies related to the fair market valuation of the acquired inventory and acquisition gains, when they occur, from the remeasurement of an existing noncontrolling investment to fair value when the company acquires the remaining equity shares of the investee.

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

(9) In the third quarter of 2022, we began to exclude the one-time inventory step-up charges associated with acquired companies related to the fair market valuation of the acquired inventory.

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

(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.

(7) In connection with our applying highly inflationary accounting (refer to Note 1, Basis of Presentation ) for Argentina, Türkiye, Egypt and Nigeria, 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 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.

Since we purchase commodity and forecasted currency transaction contracts to mitigate price volatility primarily for inventory requirements in future periods, we make this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of our underlying operating performance across periods.

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

(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.

(8) We exclude unrealized gains and losses (mark-to-market impacts) from commodity and foreign currency derivative contracts economically hedging forecasted transactions from our non-GAAP earnings measures.

The mark-to-market impacts of those derivatives are excluded until the related gains or losses are realized.

Since we purchase commodity and foreign currency derivative contracts to mitigate price volatility primarily for inventory requirements in future periods, we make this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of our underlying operating performance across periods.

(9) 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.

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In November 2019, the European Commission informed us that it initiated an investigation into our alleged infringement of European Union competition law through certain practices allegedly restricting cross-border trade within the European Economic Area.

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

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 have cooperated with the investigation and 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

unusual and therefore exclude it to better facilitate comparisons of our underlying operating performance across periods.

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 10, 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.

(11) The impact from pension participation changes represents the charges incurred, primarily gains or losses from pension curtailments or settlements as well as other costs incurred when employee groups are withdrawn from multiemployer pension plans.

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

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(12) In July 2024, our Board of Directors approved funding of $1.2 billion for a multi-year systems transformation program to upgrade our global ERP and supply chain systems (the “ERP System Implementation”), which is comprised of both capital expenditures and operating expenses, of which a majority is expected to be operating expenses.

The ERP System Implementation program will be implemented in several phases with spending occurring over the next five years, with expected completion by year-end 2028.

The ERP System Implementation program will be implemented in several phases with spending occurring over the next four years, with expected completion by year-end 2028.

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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.

(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.

(13) We exclude mark-to-market unrealized gains or losses associated with our marketable securities as well as realized gains from sales of our marketable securities from our non-GAAP earnings measures.

These marketable securities gains or losses are not indicative of underlying operations and are excluded to better facilitate comparisons of our underlying operating performance across periods.

(14) We have excluded the initial impacts from enacted tax law changes.

Initial impacts include items such as the remeasurement of deferred tax balances and the transition tax from the 2017 U.S.

We exclude initial impacts from enacted tax law changes from our Adjusted EPS as they do not reflect our ongoing tax obligations under the enacted tax law changes.

(19) We have excluded our proportionate share of our equity method investees’ significant operating and non-operating items such as acquisition and divestiture-related costs, restructuring program costs and initial impacts from enacted tax law changes, in order to provide investors with a comparable view of our performance across periods.

Although we have shareholder rights and board representation commensurate with our ownership interests in our equity method investees and review the underlying operating results and significant operating and non-operating items each reporting period, we do not have direct control over their operations or resulting revenue and expenses.

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

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

Initial impacts include items such as the remeasurement of deferred tax balances and transition taxes from tax reforms.

We exclude initial impacts from enacted tax law changes from our Adjusted EPS as they do not reflect our ongoing tax obligations under the enacted tax law.

(15) We exclude gains and losses on partial or full sales of equity method investments as well as impairments of those investments.

In addition, we also exclude from our non-GAAP financial measures any gains or losses realized on economic hedges of sales proceeds from our equity method investment transactions, which have been recorded in Interest and other expense, net .

These items are not indicative of underlying operations and are excluded to better facilitate comparisons of our underlying operating performance across periods.

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

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What changed 10-Q

Item 2. Management’s Discussion and Analysis