MDLZ's fourth-quarter results are likely to reflect strength in core categories, while cocoa cost inflation is a concern.
Mondelez (MDLZ) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Mondelez offers consistent growth, sustainable dividends, and effective buybacks, making it a reliable choice for risk-averse investors seeking steady passive income. Mondelez's strong brand loyalty and ability to manage inflation through price adjustments make it a solid investment, despite high cocoa prices. Valuation metrics indicate Mondelez is undervalued, with a low Price to Free Cash Flow and high dividend yield, suggesting a 20% upside potential.
Shares of Mondelez International, Inc. MDLZ are trading flat Monday. But the stock has been in a steep decline.
Cocoa supply shortages and adverse conditions are pressuring companies like Hershey and Mondelez, leading to increased costs and potential profitability hits. I estimate Mondelez's forward shareholder return is around 7.2% driven by $2.5B in dividends and $3B in annualized buybacks. I project 2025 to be a stagnating year for Mondelez with a net income of $3.7B, but expect growth recovery in 2026.
Cadburys is among 100 brands and products to have had their royal warrants withdrawn by King Charles in his second list since ascending the throne. A fixture since 1854 when it was first given a royal warrant by Queen Victoria, Cadburys is now owned by conglomerate Mondelez International Inc (NASDAQ:MDLZ, ETR:KTF), which has been heavily criticised for its continuing presence in Russia.
Mondelez is positioning itself for sustained growth by embracing digital transformation and innovation through strategic partnership with AWS.
Mondelez authorizes the latest share repurchase authorization of up to $9 billion of its Class A common stock.
Sources reveal that Mondelez is exploring the acquisition of Hershey, which is likely to create one of the world's largest confectionery companies.
While Mondelez faces some short-term hurdles, it appears well-placed for the long term, given its focus on strengthening core categories.
While Mondelez is contending with input cost inflation and soft volumes in emerging market, a focus on core categories and brand building bodes well.
Mondelez International Inc. has strong growth prospects, driven by price increases, volume growth in chocolates and biscuits, and distribution expansion in emerging markets. Margins are expected to improve due to price increases, cost-saving initiatives, and effective cocoa hedging, despite current volatility in cocoa prices. The stock is trading at a discount to historical averages and its peer Hershey, offering an attractive dividend yield of 2.92%.