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Item 2. Management’s Discussion and Analysis

2025-07-29 compared with 2025-04-29 · 468 added, 258 removed, 325 unchanged (69% of the section changed)

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We believe the successful implementation of our strategic priorities and leveraging of our attractive global footprint, strong core of iconic global and local brands, marketing, sales, distribution and cost excellence capabilities, and top talent with a growth mindset, will drive consistent top- and bottom-line growth, enabling us to continue to create long-term value for our shareholders.

Recent Developments and Significant Items Affecting Comparability

Recent Developments and Significant Items

Macroeconomic environment

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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.

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 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.

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We continue to consolidate both our Ukrainian and Russian subsidiaries.

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.

During the second quarter of 2025, Ukraine generated 0.4% and Russia generated 4.0% of our consolidated net revenue and during the second quarter of 2024, Ukraine generated 0.4% and Russia generated 2.9% of our consolidated net revenue.

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

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

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.

Throughout 2024 and into 2025, we experienced limited adverse 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”).

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 four years, with expected completion by year-end 2028.

Refer to Non-GAAP financial measures for additional information.

Extreme Price Growth in Argentina

Extreme Price Growth in Argentina and Other Currency-Related Items

During December 2023, the Argentinean peso significantly devalued.

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Refer to Non-GAAP financial measures for additional information.

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

Currency-related items impacted our non-GAAP financial measures for the three months ended June 30, 2025 as follows:

• Organic Net Revenue:

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.

In the second quarter of 2025, favorable currency-related items of $68 million (0.8 pp) were driven by favorable currency translation rate changes of $45 million (0.6 pp) and extreme pricing of $23 million (0.2 pp).

In Emerging Markets, unfavorable currency-related items of $58 million (1.8 pp) were driven by unfavorable currency translation rate changes of $81 million (2.5 pp), partially offset by extreme pricing of $23 million (0.7 pp).

In Developed Markets, favorable currency-related items of $126 million (2.5 pp) were driven by favorable currency translation rate changes.

• Adjusted Operating Income:

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.

In the second quarter of 2025, favorable currency-related items of $30 million were driven by favorable currency translation rate changes of $26 million and extreme pricing of $4 million.

• Adjusted EPS:

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.

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

Currency-related items impacted our non-GAAP financial measures for the six months ended June 30, 2025 as follows:

• Organic Net Revenue:

In the first six months of 2025, unfavorable currency-related items of $274 million (1.6 pp) were driven by unfavorable currency translation rate changes of $320 million (1.8 pp), partially offset by extreme pricing of $46 million (0.2 pp).

In Emerging Markets, unfavorable currency-related items of

$310 million (4.4 pp) were driven by unfavorable currency translation rate changes of $356 million (5.1 pp), partially offset by extreme pricing of 46 million (0.7 pp).

In Developed Markets, favorable currency-related items of 36 million (0.3 pp) were driven by favorable currency translation rate changes.

• Adjusted Operating Income:

In the first six months of 2025, favorable currency-related items of $3 million were driven by the impact of extreme pricing of $8 million, partially offset by unfavorable currency translation rate changes of $5 million.

• Adjusted EPS:

In the first six months of 2025, currency-related items were neutral as unfavorable currency translation rate changes were offset by extreme pricing.

ERP System Implementation

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

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.

Acquisitions and Divestitures

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JDE Peet’s Transactions (Euronext Amsterdam:

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

During the first quarter of 2024, we recorded an impairment charge of €612 million ($665 million) related to our JDEP investment.

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

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.

Mondelēz Global LLC Retirement Plan

During the third quarter of 2024, we entered into agreements with two third-party insurance companies to purchase buy-in annuity contracts to cover the liabilities associated with the Mondelēz Global LLC Retirement Plan (“MDLZ Global Plan”), the pension plan for U.S.

salaried employees.

The agreements provided us with the option to elect a buy-out conversion, at which time full responsibility of the MDLZ Global Plan obligations would transfer to the insurance companies.

On June 12, 2025 we elected the buy-out conversion and recognized a non-cash pretax settlement loss of $282 million as a component of net periodic pension cost 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.

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 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 (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.

Discussion and Analysis of Historical Results

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

While the existing legislation does not have a material impact on our condensed consolidated financial statements, we are monitoring how the June 28, 2025 G7 announcement that U.S.-parented companies be exempted from certain aspects of the global minimum tax regime will be incorporated into the model rules and local legislation around the world.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into U.S.

While we are still evaluating the impacts of the OBBBA, we do not expect any material impacts to our financial statements for the year ending December 31, 2025.

Non-GAAP Financial Measures

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, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

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

GAAP reported results.

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

GAAP reported results.

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.

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

Our 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.

For additional information, refer to Extreme Price Growth in Argentin a.

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.

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.

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

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

For descriptions of the items excluded from our non-GAAP financial measures, refer to Items Affecting Comparability of Financial Results .

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

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

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

Organic Net Revenue growth is presented on a consolidated basis, for each of our segments and for our 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;

the AMEA region, excluding Australia, New Zealand and Japan;

and the following countries from the Europe region:

Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.

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

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

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

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

divestiture-related items;

acquisition-related items;

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

remeasurement of net monetary position of highly inflationary countries;

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

impacts from resolution of indirect tax matters;

incremental costs due to the war in Ukraine;

impact from the European Commission legal matter;

the impact from pension participation changes;

and operating costs from the ERP System Implementation program.

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

We also evaluate growth in our Adjusted

Operating Income on a constant currency basis.

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

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

GAAP financial measure) from continuing operations excluding, 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;

gains or losses on marketable securities transactions;

initial impacts from enacted tax law changes;

and gains or losses on equity method investment transactions.

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

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

Items Affecting Comparability of Financial Results

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

The below table and subsequent commentary presents income or (expense) items that affected the comparability of our results of operations and provides details of each item.

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

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.

These items are excluded from our non-GAAP earnings measures to better facilitate comparisons of our underlying operating performance across periods.

Refer 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 and to the Non-GAAP Financial Measures section for definitions of our non-GAAP financial measures.

For the Three Months Ended

June 30, For the Six Months Ended

See Note 2025 2024 2025 2024

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Divestiture-related items

Note 2 3 — 7 (4)

Operating results from short-term distributor agreements

Incremental costs due to war in Ukraine

(1) (1) (1) (2)

European Commission legal matter Note 10 — 3 — 3

ERP System Implementation costs

(37) (9) (70) (9)

Remeasurement of net monetary position Note 1 (8) (9) (15) (17)

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Note 6 — — — (665)

Effective tax rate Note 14 28.3 % 23.6 %

(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.

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 within this item.

Mark-to-market impacts from derivatives – 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.

Acquisition-related items – Includes 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 a controlling interest in the investee.

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

Divestitures may include sales of businesses, exits of major product lines upon completion of a sale or licensing agreement, or sales of equity method investments.

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

Operating Results from short-term distributor agreements – Reflects the operating results from short-term distributor agreements that have been executed in conjunction with the sale of a business.

Incremental costs due to war in Ukraine – In February 2022, Russia began a military invasion of Ukraine and we temporarily stopped our production and closed our manufacturing facilities in Trostyanets and Vyshhorod due to damage incurred during the conflict.

In the second quarter of 2024, we fully resumed production at both facilities after completing targeted repairs.

Incremental costs incurred by the company related to the ongoing war in Ukraine primarily relate to asset write-downs, net of recoveries.

European commission legal matter – 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.

We reached a negotiated resolution to this matter in the second quarter of 2024.

We 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 from our non-GAAP earnings measures to better facilitate comparisons of our underlying operating performance across periods.

ERP system implementation costs – 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, 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 four years, with expected completion by year-end 2028.

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.

Remeasurement of net monetary position of highly inflationary countries – The company’s operations in Argentina, Türkiye, Egypt and Nigeria are currently accounted for as highly inflationary.

We exclude remeasurement gains and losses of the monetary assets and liabilities of its subsidiaries in highly inflationary economies and the realized gains and losses from derivatives that mitigate the foreign currency volatility related to the remeasurement of the respective monetary assets or liabilities from its non-GAAP earnings measures to facilitate comparisons of our underlying operating performance across periods.

Impact from pension participation changes – Consists of the charges incurred, primarily gains or losses from pension curtailments and settlements, including the settlement of a pension plan for U.S.

salaried employees during the second quarter of 2025, as well as 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.

Initial impacts from enacted tax law changes – Initial impacts from enacted tax law changes 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 non-GAAP financial measures as they do not reflect our ongoing tax obligations under the enacted tax law.

Gains and losses on equity method investment transactions – We exclude gains and losses from 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.

Discussion and Analysis of Historical Results

Summary of Results

• Net revenues increased 7.7% to $9.0 billion in the second quarter of 2025 and increased 3.8% to $18.3 billion in the first six months of 2025 as compared to the same periods in the prior year.

– Net revenue growth in the second quarter of 2025 was driven by higher net pricing, incremental net revenue from our acquisition of Evirth and favorable currency-related items, as several currencies we operate in strengthened relative to the U.S.

dollar as compared to exchange rates in the prior year, partially offset by unfavorable volume/mix.

– Net revenue growth in the first six months of 2025 was driven by higher net pricing and incremental net revenue from our acquisition of Evirth, partially offset by unfavorable volume/mix, unfavorable currency-related items, as the U.S.

dollar strengthened relative to most currencies we operate in compared to exchange rates in the prior year, and 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 5.6% to $8.8 billion in the second quarter of 2025 and increased 4.3% to $18.4 billion in the first six months of 2025 as compared to the same periods in the prior year.

During both the second quarter and the first six months of 2025, 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 increased 8.9% to $0.49 in the second quarter of 2025 and decreased 46.3% to $0.80 in the first six months of 2025 as compared to the same periods in the prior year.

– Diluted EPS increased in the second quarter of 2025, driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, a favorable year-over-year change in acquisition-related items, lapping prior-year unfavorable initial impacts from enacted tax law changes and lapping prior-year costs for the completed Simplify to Grow program.

These favorable items were partially offset by a non-cash loss related to the settlement of a U.S.

pension plan, a decrease in Adjusted EPS, costs incurred for the ERP System Implementation program and lapping prior-year operating results from divestitures.

– Diluted EPS decreased in the first six months of 2025, driven by an unfavorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, a decrease in Adjusted EPS, an unfavorable impact from a loss related to the settlement of a U.S.

pension plan, costs incurred for the ERP System Implementation program and lapping prior-year divestiture-related items.

These unfavorable items were partially offset by lapping a prior-year equity method investment impairment, a favorable year-over-year change in acquisition-related items, lapping prior-year costs for the completed Simplify to Grow Program and lapping prior-year unfavorable initial impacts from enacted tax law changes.

• Adjusted EPS, a non-GAAP financial measure, decreased 12.0% to $0.73 in the second quarter of 2025 and decreased 16.5% to $1.47 in the first six months of 2025 as compared to the same periods in the prior year.

On a constant currency basis, Adjusted EPS decreased 14.5% to $0.71 in the second quarter of 2025 and decreased 16.5% to $1.47 in the first six months of 2025 as compared to the same periods in the prior year.

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

– Adjusted EPS decreased in the second quarter of 2025, driven by operating declines, higher interest and other expense and lower benefit plan non-service income, partially offset by fewer shares outstanding, favorable currency-related impacts and the impact from an acquisition.

– Adjusted EPS decreased in the first six months of 2025, driven by operating declines, higher interest and other expense, lower benefit plan non-service income and lower equity method investment earnings, partially offset by fewer shares outstanding, lower taxes and the impact from an acquisition.

Consolidated Results of Operations

Three Months Ended March 31

Three Months Ended June 30

For the Three Months Ended

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0.49 0.45 0.04 8.9 %

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) .

Net Revenues – Net revenues increased $641 million (7.7%) to $8,984 million in the second quarter of 2025, and Organic Net Revenue (1) increased $471 million (5.6%) to $8,814 million.

Emerging markets net revenues increased 11.6% and emerging markets Organic Net Revenue increased 10.2% (1) .

Developed markets net revenues increased 5.2% and developed markets Organic Net Revenue increased 2.7% (1) .

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International

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Reported (GAAP) $ 3,638 $ 5,346 $ 8,984

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Currency-related items

58 (126) (68)

Organic (Non-GAAP) $ 3,594 $ 5,220 $ 8,814

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Reported (GAAP) $ 3,260 $ 5,083 $ 8,343

No adjusting items

Organic (Non-GAAP) $ 3,260 $ 5,083 $ 8,343

Reported (GAAP) 11.6 % 5.2 % 7.7 %

Acquisitions (3.2) — (1.3)

Currency-related items

1.8 (2.5) (0.8)

Organic (Non-GAAP) 10.2 % 2.7 % 5.6 %

Vol/Mix (0.8)pp (1.8)pp (1.5)pp

Pricing 11.0 4.5 7.1

(1) Refer to the Non-GAAP Financial Measures section above for additional information.

Net revenue increase of 7.7% was driven by our underlying Organic Net Revenue growth of 5.6%, the impact of an acquisition and favorable currency-related items.

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

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 six months of 2025.

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

Unfavorable volume/mix was experienced across all regions except AMEA, driven by pricing elasticity impacts in Europe and Latin America, as well as U.S.

retailer inventory destocking and soft consumption in North America.

The November 1, 2024 acquisition of Evirth added incremental net revenues of $102 million (constant currency basis) in the first quarter of 2025.

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

Currency-related items increased net revenues by $68 million, driven by favorable currency translation rate changes and the impact of extreme pricing in Argentina.

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

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

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

dollar relative to several currencies, primarily the Mexican peso, Argentinean peso, Brazilian real, Turkish lira, Indian rupee and Australian dollar.

Operating Income – Operating income increased $318 million (37.2%) to $1,172 million in the second quarter of 2025.

Adjusted Operating Income (1) decreased $209 million (14.0%) to $1,283 million and Adjusted Operating Income on a constant currency basis (1) decreased $239 million (16.0%) to $1,253 million due to the following:

For the Three Months Ended

2025 2024 $ Change % Change

(in millions)

Operating Income $ 1,172 $ 854 $ 318 37.2 %

Simplify to Grow Program

Mark-to-market losses from derivatives

Acquisition-related items

Divestiture-related items

Incremental costs due to war in Ukraine

European Commission legal matter — (3) 3

ERP System Implementation costs

Remeasurement of net monetary position

Adjusted Operating Income (1)

$ 1,283 $ 1,492 $ (209) (14.0) %

Currency-related items

Adjusted Operating Income (constant currency) (1)

$ 1,253 $ 1,492 $ (239) (16.0) %

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

Higher net pricing

Higher input costs

Unfavorable volume/mix (129)

Lower selling, general and administrative expenses

Impact from acquisitions

Lower asset impairment charges

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

(1) Refer to the Non-GAAP Financial Measures section above for additional information.

During the second 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 six 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 primarily due to higher cocoa, packaging, dairy, edible oils, 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 energy costs.

Overall, unfavorable volume/mix was experienced across all regions, primarily due to unfavorable product mix reflecting pricing elasticity impacts in Europe, Latin America and AMEA, as well as biscuit & baked snacks category softness in North America.

Total selling, general and administrative expenses decreased $166 million from the second quarter of 2024, which was net of benefits from a number of factors noted in the table above, including in part, favorable year-over-year change in acquisition-related items, partially offset by costs incurred for the ERP System Implementation program and the impact from acquisitions.

Excluding these factors, selling, general and administrative expenses decreased $141 million from the second quarter of 2024.

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

Favorable currency-related items including the impact of extreme pricing in Argentina, increased operating income by $30 million primarily due to the strength of several currencies relative to the U.S.

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

dollar relative to several currencies, including the Mexican peso, Swiss franc and Brazilian real.

Operating income margin increased from 10.2% in the second quarter of 2024 to 13.0% in the second quarter of 2025.

The increase in operating income margin was driven primarily by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, a favorable year-over-year change in acquisition-related items and lapping prior-year costs for the completed Simplify to Grow Program, partially offset by lower Adjusted Operating Income margin and costs incurred for the ERP System Implementation program.

Adjusted Operating Income margin decreased from 17.9% for the second quarter of 2024 to 14.3% for the second quarter of 2025.

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

Income Taxes – Our effective tax rate was 26.9% for the second quarter of 2025 as compared to 34.7% in the second quarter of 2024.

The decrease in our effective tax rate was driven by our jurisdictional mix of earnings, particularly the impact of lower mark-to-market losses on commodity and foreign currency derivatives in the current quarter, and higher costs from tax law changes in the second quarter of 2024.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $641 million increased by $40 million (6.7%) in the second quarter of 2025.

Diluted EPS attributable to Mondelēz International was $0.49 in the second quarter of 2025, up $0.04 (8.9%) from the second quarter of 2024.

Adjusted EPS (1) was $0.73 in the second quarter of 2025, down $0.10 (12.0%) from the second quarter of 2024.

Adjusted EPS on a constant currency basis (1) was $0.71 in the second quarter of 2025, down $0.12 (14.5%) from the second quarter of 2024.

For the Three Months Ended

2025 2024 $ Change % Change

Diluted EPS attributable to Mondelēz International $ 0.49 $ 0.45 $ 0.04 8.9 %

Simplify to Grow Program

— 0.01 (0.01)

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

0.06 0.34 (0.28)

Acquisition-related items

(0.01) 0.02 (0.03)

Divestiture-related items

— (0.02) 0.02

ERP System Implementation costs

Remeasurement of net monetary position

Impact from pension participation changes

Initial impacts from enacted tax law changes

— 0.02 (0.02)

Adjusted EPS (1)

$ 0.73 $ 0.83 $ (0.10) (12.0) %

Currency-related items

(0.02) — (0.02)

Adjusted EPS (constant currency) (1)

$ 0.71 $ 0.83 $ (0.12) (14.5) %

Key Drivers of Adjusted EPS (constant currency) $ Change

Decrease in operations

Impact from acquisitions

Change in benefit plan non-service income (0.01)

Change in interest and other expense, net

Change in shares outstanding

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

(1) Refer to the Non-GAAP Financial Measures section above for additional information.

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

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

• For the three months ended June 30, 2025, taxes for the:

mark-to-market losses from derivatives were $(16) million, acquisition-related items were $9 million, ERP System Implementation program were $(10) million, remeasurement of net monetary positions was zero and impact from pension participation changes were $(73) million.

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

Simplify to Grow Program were $(6) million, mark-to-market losses from derivatives were $(111) million, acquisition-related items were $(7) million, remeasurement of net monetary position was zero and initial impacts from enacted tax law changes were $25 million.

Six Months Ended June 30:

For the Six Months Ended

2025 2024 $ Change

(in millions, except per share data)

Net revenues $ 18,297 $ 17,633 $ 664 3.8 %

Operating income 1,852 3,581 (1,729) (48.3) %

Net earnings attributable to

Mondelēz International

1,043 2,013 (970) (48.2) %

Diluted earnings per share attributable to

Mondelēz International

0.80 1.49 (0.69) (46.3) %

Net Revenues – Net revenues increased $664 million (3.8%) to $18,297 million in the first six months of 2025, and Organic Net Revenue (1) increased $762 million (4.3%) to $18,370 million.

Emerging markets net revenues increased 5.3% and emerging markets Organic Net Revenue increased 6.9% (1) .

Developed markets net revenues increased 2.8% and developed markets Organic Net Revenue increased 2.7% (1) .

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

Markets Developed

Markets Mondelēz

International

Six Months Ended June 30, 2025

Reported (GAAP) $ 7,361 $ 10,936 $ 18,297

Acquisitions (201) — (201)

Currency-related items

Organic (Non-GAAP) $ 7,470 $ 10,900 $ 18,370

Six Months Ended June 30, 2024

Reported (GAAP) $ 6,993 $ 10,640 $ 17,633

Short-term distributor agreements

3 unchanged sentences

Short-term distributor agreements

0.1 0.4 0.3 pp

— pp 0.2 pp 0.1 pp

Acquisitions (2.8) — (1.2)

Currency-related items

4.4 (0.3) 1.6

Organic (Non-GAAP) 6.9 % 2.7 % 4.3 %

1 unchanged sentence

Pricing 9.2 5.3 6.8

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

(1) Refer to the Non-GAAP Financial Measures section above for additional information.

Net revenue increase of 3.8% was driven by our underlying Organic Net Revenue growth of 4.3% 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 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 due to the benefit of carryover pricing from 2024 as well as the effects of input cost-driven pricing actions taken during the first six 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.

Unfavorable volume/mix was experienced across all regions, driven by volume declines reflecting pricing elasticity impacts in Europe and Latin America as well as U.S.

retailer inventory destocking and soft consumption in North America.

The November 1, 2024 acquisition of Evirth added incremental net revenues of $201 million for the first six months of 2025.

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

Currency-related items decreased net revenues by $342 million, driven by unfavorable currency translation rate changes, partially offset by extreme pricing in Argentina.

Currency-related items decreased net revenues by $274 million, driven by unfavorable currency translation rate changes, partially offset by the impact of 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 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.

dollar relative to most currencies, primarily the Mexican peso, Brazilian real, Argentinean peso, Indian rupee, Turkish lira, Australian dollar, Egyptian pound and Canadian dollar, partially offset by the strength of a few currencies relative to the U.S.

dollar, including British pound sterling, Russian ruble and euro.

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 $1,729 million (48.3%) to $1,852 million in the first six months of 2025.

Adjusted Operating Income (1) decreased $544 million (17.0%) to $2,658 million and Adjusted Operating Income on a constant currency basis (1) decreased $547 million (17.1%) to $2,655 million due to the following:

For the Three Months Ended

For the Six Months Ended

2025 2024 $ Change % Change

5 unchanged sentences

Acquisition-related items

(29) 79 (108)

Divestiture-related items

Operating results from short-term distributor agreements (1)

Operating income from short-term distributor agreements

Incremental costs due to war in Ukraine

European Commission legal matter

ERP System Implementation costs

10 unchanged sentences

Lower selling, general and administrative expenses

Impact from acquisitions (4)

Impact from acquisition

Lower amortization of intangible assets

1 unchanged sentence

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

(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.

(1) Refer to the Non-GAAP Financial Measures section above for additional information.

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

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

Higher raw material costs were 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.

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

Overall, unfavorable volume/mix was experienced across all regions, reflecting pricing elasticity impacts as well as biscuit & baked snacks category softness in North America.

Total selling, general and administrative expenses decreased $393 million from the first six months of 2024, which was net of benefits from a number of factors noted in the table above, including in part, a favorable year-over-year change in acquisition-related items, a favorable currency-related impact to expenses, lapping prior-year implementation costs for the completed Simplify to Grow Program and lapping prior-year divestiture-related items, partially offset by costs incurred for the ERP System Implementation program and the impact from acquisitions.

Excluding these factors, selling, general and administrative expenses decreased $273 million from the first six months 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.

Currency-related items increased operating income by $3 million, as unfavorable currency translation changes were more than offset by the impact of extreme pricing in Argentina.

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

dollar relative to several currencies, including the Mexican peso, Brazilian real, Australian dollar, Egyptian pound, Indian rupee, Nigerian naira, Swiss franc, Canadian dollar and Chinese yuan, partially offset by the strength of several currencies relative to the U.S.

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

Operating income margin decreased from 20.3% in the first six months of 2024 to 10.1% in the first six months 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 favorable year-over-year change in acquisition-related items and lapping prior-year costs for the completed Simplify to Grow Program.

Adjusted Operating Income margin decreased from 18.2% for the first six months of 2024 to 14.5% for the first six months 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

Income Taxes – Our effective tax rate for the six months ended June 30, 2025, was 27.4% as compared to 26.2% for the six months ended June 30, 2024.

The increase in our year-to-date effective tax rate was driven by our jurisdictional mix of earnings (including the impact of mark-to-market gains and losses on commodity and foreign currency derivatives) and the relative impact of permanent items on lower pre-tax earnings on a year-over-year basis.

Those items were partially offset by additional releases of liabilities for uncertain tax positions due to audit developments in the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $1,043 million decreased by $970 million (48.2%) in the first six months of 2025 .

Diluted EPS attributable to Mondelēz International was $0.80 in the first six months of 2025, down $0.69 (46.3%) from the first six months of 2024.

Adjusted EPS (1) was $1.47 in the first six months of 2025, down $0.29 (16.5%) from the first six months of 2024.

Adjusted EPS on a constant currency basis (1) was $1.47 in the first six months of 2025, down $0.29 (16.5%) from the first six months of 2024.

For the Six Months Ended

2025 2024 $ Change % Change

6 unchanged sentences

(0.01) 0.05 (0.06)

Divestiture-related items

— (0.02) 0.02

ERP System Implementation costs

Remeasurement of net monetary position

Impact from pension participation changes

Initial impacts from enacted tax law changes

— 0.02 (0.02)

9 unchanged sentences

Impact from acquisitions

Change in benefit plan non-service income (0.01)

Change in interest and other expense, net

Change in equity method investment net earnings

Change in income taxes

1 unchanged sentence

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

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

(1) Refer to the Non-GAAP Financial Measures section above for additional information.

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

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

• For the three months ended March 31, 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.

• For the six months ended June 30, 2025, taxes for the:

mark-to-market losses from derivatives were $(152) million, acquisition-related items were $14 million, ERP System Implementation program were $(18) million, remeasurement of net monetary position were zero, impact from pension participation changes were $(73) million.

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

Simplify to Grow Program were $(17) million, mark-to-market gains from derivatives were $116 million, acquisition-related items were $(17) million, operating results from divestitures were zero, remeasurement of net monetary position were zero, initial impacts from enacted tax law changes were $23 million, loss on equity method investment transactions were zero.

Results of Operations by Reportable Segment

9 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

(in millions)

5 unchanged sentences

Net revenues $ 8,984 $ 8,343 $ 18,297 $ 17,633

Earnings before income taxes:

Segment operating income:

Latin America $ 133 $ 144 $ 272 $ 301

AMEA 271 290 614 701

Europe 514 550 976 1,141

North America 454 545 939 1,094

Unrealized (losses)/gains on hedging activities

(mark-to-market impacts) (669) 1,124

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

(93) (571) (762) 553

General corporate expenses (69) (67) (112) (134)

7 unchanged sentences

Segment operating income 133 144 (11) (7.6) %

Three Months Ended March 31:

For the Six Months Ended

2025 2024 $ Change

(in millions)

Net revenues $ 2,397 $ 2,551 $ (154) (6.0) %

Segment operating income 272 301 (29) (9.6) %

Three Months Ended June 30:

Net revenues decreased $38 million (3.1%), due to an unfavorable impact of currency-related items (8.5 pp) and unfavorable volume/mix (2.2 pp), partially offset by higher net pricing (7.6 pp).

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

Currency-related items were unfavorable due to currency translation rate changes, partially offset by the impact of extreme pricing in Argentina.

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

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

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

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.

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

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

Segment operating income decreased $11 million (7.6%), primarily due to higher raw material costs, costs incurred for the ERP System Implementation program, higher other selling, general and administrative expenses, unfavorable currency-related items and unfavorable volume/mix.

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.

Six Months Ended June 30:

Net revenues decreased $154 million (6.0%), due to an unfavorable impact of currency-related items (10.6 pp) and unfavorable volume/mix (2.4 pp), partially offset by higher net pricing (7.0 pp).

Currency-related items were unfavorable due to currency translation rate changes, partially offset by the impact of extreme pricing in Argentina.

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

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

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

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

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

Segment operating income decreased $29 million (9.6%), primarily due to higher raw material costs, unfavorable volume/mix, costs incurred for the ERP System Implementation program, higher other selling, general and administrative expenses 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, lower acquisition integration costs, lower losses on remeasurement of net monetary position in highly inflationary countries and lapping prior-year costs for the completed Simplify to Grow program.

For the Three Months Ended

3 unchanged sentences

Segment operating income 271 290 (19) (6.6) %

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.

For the Six Months Ended

2025 2024 $ Change

(in millions)

Net revenues $ 3,837 $ 3,537 $ 300 8.5 %

Segment operating income 614 701 (87) (12.4) %

Three Months Ended June 30:

Net revenues increased $234 million (14.7%), due to the higher net pricing (7.9 pp), impact of an acquisition (6.4 pp) and favorable volume/mix (0.7 pp), partially offset by unfavorable currency translation rate changes (0.3 pp).

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

The November 1, 2024 acquisition of Evirth added incremental net revenues of $102 million (constant currency basis) in the second quarter of 2025.

Favorable volume/mix reflected volume gains partially offset by unfavorable product mix.

Overall, favorable volume/mix was driven by gains in biscuits & baked snacks, gum, cheese & grocery and candy, partially offset by declines in refreshment beverages 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 Indian rupee, Australian dollar, Nigerian naira and Egyptian pound.

Segment operating income decreased $19 million (6.6%), primarily due to higher raw material costs, unfavorable volume/mix and higher acquisition integration costs and contingent consideration adjustments.

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

Six Months Ended June 30:

Net revenues increased $300 million (8.5%), due to higher net pricing (6.2 pp) and the impact of an acquisition (5.7 pp), partially offset by unfavorable currency translation rate changes (2.0 pp) and unfavorable volume/mix (1.4 pp).

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

The November 1, 2024 acquisition of Evirth added incremental net revenues of $201 million (constant currency basis) in the first six months of 2025.

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

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.

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

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

Segment operating income decreased $87 million (12.4%), primarily due to higher raw material costs, unfavorable volume/mix, higher acquisition integration costs and contingent consideration adjustments and unfavorable currency translation rate changes.

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

For the Three Months Ended

3 unchanged sentences

Segment operating income 514 550 (36) (6.5) %

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).

For the Six Months Ended

2025 2024 $ Change

(in millions)

Net revenues $ 6,962 $ 6,242 $ 720 11.5 %

Segment operating income 976 1,141 (165) (14.5) %

Three Months Ended June 30:

Net revenues increased $538 million (18.7%), due to higher net pricing (13.8 pp) and favorable currency translation rate changes (6.2 pp), partially offset by unfavorable volume/mix (1.3 pp).

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

Favorable currency translation rate changes reflected the strength of most currencies across the region relative to the U.S.

dollar, primarily the euro, British pound sterling, Russian ruble, Polish zloty and Swedish krona.

Unfavorable volume/mix reflected pricing elasticity impacts.

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

Segment operating income decreased $36 million (6.5%), primarily due to higher raw material costs and unfavorable volume/mix.

These unfavorable items were partially offset by higher net pricing, lower manufacturing costs driven by productivity, favorable currency translation rate changes, lower advertising and consumer promotion costs, lower other selling, general and administrative expenses and lapping prior-year costs for the completed Simplify to Grow Program.

Six Months Ended June 30:

Net revenues increased $720 million (11.5%), due to higher net pricing (13.6 pp) and favorable currency translation rate changes (1.4 pp), partially offset by unfavorable volume/mix (3.0 pp ) and lapping the prior-year net revenue from a short-term distributor agreement (0.5 pp ).

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

Favorable currency translation rate changes reflected the strength of most currencies across the region relative to the U.S.

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

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

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

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.

Segment operating income decreased $165 million (14.5%), primarily due to higher raw material costs, unfavorable volume/mix 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, lower manufacturing costs driven by productivity, lapping prior-year costs for the completed Simplify to Grow program, favorable currency translation rate changes, lower other selling, general and administrative expenses, lower divestiture-related costs and lower asset impairment charges.

North America

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Segment operating income 454 545 (91) (16.7) %

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.

For the Six Months Ended

2025 2024 $ Change

(in millions)

Net revenues $ 5,101 $ 5,303 $ (202) (3.8) %

Segment operating income 939 1,094 (155) (14.2) %

Three Months Ended June 30:

Net revenues decreased $93 million (3.5%), due to unfavorable volume/mix (2.4 pp), lower net pricing (1.0 pp) and unfavorable currency translation rate changes (0.1 pp).

Unfavorable volume/mix was driven by declines in biscuits & baked snacks, primarily due to U.S.

retailer inventory destocking and soft consumption, and candy, slightly offset by a gain in chocolate.

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

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

dollar relative to the Canadian dollar.

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

Segment operating income decreased $91 million (16.7%), 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.

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 manufacturing costs due to productivity and lapping prior-year costs for the completed Simplify to Grow program.

Six Months Ended June 30:

Net revenues decreased $202 million (3.8%), due to unfavorable volume/mix (2.8 pp), lower net pricing (0.7 pp) and unfavorable currency translation rate changes (0.3 pp).

Unfavorable volume/mix was driven by declines in biscuits & baked snacks, primarily due to U.S.

retailer inventory destocking and soft consumption, and candy, slightly offset by a gain in chocolate.

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

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

dollar relative to the Canadian dollar.

Segment operating income decreased $155 million (14.2%), 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 manufacturing costs due to productivity and lapping prior-year costs for the completed Simplify to Grow program.

Liquidity and Capital Resources

We believe that cash from operations, our revolving credit facilities, short-term borrowings and our authorized long-term financing will continue to provide sufficient liquidity for our working capital needs, planned capital expenditures and future payments of our contractual, tax and benefit plan obligations and payments for acquisitions, share repurchases and quarterly dividends.

We believe that cash from operations, our revolving credit facilities, short-term borrowings and long-term debt financing will continue to provide sufficient liquidity for our working capital needs, planned capital expenditures and future payments of our contractual, tax and benefit plan obligations and payments for acquisitions, share repurchases and quarterly dividends.

We expect to continue to utilize our commercial paper program and international credit lines as needed.

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We also use intercompany loans with our international subsidiaries to improve financial 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 conflicts in Ukraine and the Middle East.

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

However, if a serious economic or credit market crisis ensues or other adverse developments arise, it could have a material adverse effect on our liquidity, results of operations and financial condition.

Our most significant ongoing short-term cash requirements relate primarily to funding operations (including expenditures for raw materials, labor, manufacturing and distribution, trade and promotions, advertising and marketing, tax liabilities, benefit plan obligations and lease expenses) as well as periodic expenditures for acquisitions, shareholder returns (such as dividend payments and share repurchases), property, plant and equipment and any significant one-time non-operating items.

Long-term cash requirements primarily relate to funding long-term debt repayments (refer to Note 7, Debt and Borrowing Arrangements ), our U.S.

tax reform transition tax liability and deferred taxes (refer to Note 16, Income Taxes, in our Annual Report on Form 10-K for the year ended December 31, 2024), our long-term benefit plan obligations (refer to Note 9, Benefit Plans, and Note 11 , Benefit Plans, in our Annual report on Form 10-K for the year ended December 31, 2024) and commodity-related purchase commitments and derivative contracts (refer to Note 8, Financial Instruments ).

tax reform transition tax liability and deferred taxes (refer to Note 16, Income Taxes, in our Annual Report on Form 10-K for the year ended December 31, 2024), our long-term benefit plan obligations (refer to Note 9, Benefit Plans, in Item 1 herein and Note 11 , Benefit Plans, in our Annual report on Form 10-K for the year ended December 31, 2024) and commodity-related purchase commitments and derivative contracts (refer to Note 8, Financial Instruments ).

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

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Our cash flow activity is noted below:

For the Three Months Ended

For the Six Months Ended

(in millions)

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Net Cash Provided by Operating Activities

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.

The reduction 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.

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

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

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Net Cash Used in Financing Activities

The 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 reduction in cash used in financing activities was primarily due to higher debt proceeds, partially offset by higher debt repayments, higher share repurchases and higher dividends paid in the first six months of 2025 compared to the same prior year period.

We paid dividends of $1,233 million in the first six months of 2025 and $1,151 million in the first six months of 2024.

The second quarter 2025 dividend of $0.470 per share, declared on May 21, 2025 for shareholders of record as of June 30, 2025, was paid on July 14, 2025.

On July 29, 2025, the Audit Committee, with authorization delegated from our Board of Directors, declared a quarterly cash dividend of $0.50 per share of Class A Common Stock, an increase of 6 percent.

This dividend is payable on October 14, 2025, to shareholders of record as of September 30, 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.

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

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

As of June 30, 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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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.

As of June 30, 2025, $2.4 billion of the long-term financing authorization remained available.

Our total debt was $20.9 billion as of June 30, 2025 and $17.7 billion as of December 31, 2024.

Our debt-to-capitalization ratio was 0.44 at June 30, 2025 and 0.40 at December 31, 2024.

At June 30, 2025, the weighted-average term of our outstanding long-term debt was 7.5 years.

Our average daily commercial paper borrowings outstanding were $2.0 billion in the first six months of 2025 and $0.9 billion in the first six months of 2024.

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

(“MIHN”), has outstanding debt.

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.

The operations held by MIHN generated approximately 74.3% (or $13.6 billion) of the $18.3 billion of consolidated net revenue for the six months ended June 30, 2025.

The operations held by MIHN represented approximately 93.9% (or $24.6 billion) of the $26.2 billion of consolidated net assets as of June 30, 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 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.

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

In particular, the supply of cocoa is exposed to many of these factors, including climate change and

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

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

During the first three months of 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.

During the first six 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 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.

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

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In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

Non-GAAP Financial Measures

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.

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.

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

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

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.

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;

the AMEA region, excluding Australia, New Zealand and Japan;

and the following countries from the Europe region:

Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.

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

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-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 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;

incremental costs due to the war in Ukraine (9) ;

impact from the European Commission legal matter (10) ;

the impact from pension participation changes (11) ;

and operating costs from the ERP System Implementation program (12) .

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

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

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

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

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

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 (15) .

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

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

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

(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) 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.

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

(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.

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.

(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.

(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.

(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.

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

We have isolated and exclude these costs and related impacts as well as subsequent recoveries from our operating results to facilitate evaluation and comparisons of our ongoing results.

Incremental costs related to increasing operations in other primarily European facilities are not included with these costs.

(10) In the fourth quarter of 2022, we began to exclude the impact from the European Commission legal matter.

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.

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.

Refer to Note 10, Commitments and Contingencies, for additional information.

(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.

See Note 9, Benefit Plans , for additional information on the multiemployer pension plan withdrawal.

(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 four years, with expected completion by year-end 2028.

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.

(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 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.

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

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

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

Our use of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for any U.S.

GAAP financial measures.

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

GAAP reported results.

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

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

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

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis