Mondelez International, Inc. Q2 FY2025 earnings call

• Q2 results are good with good pricing, flat volume/mix when discounting downsizing, and better-than-expected bottom line.
• Global balance with continued weakness in North America but strong performance in the rest of the world.
• Chocolate and RGM actions playing out as expected, categories showing strength.
• Europe: resilient business, strong share gains, snacking outpacing food.
• U.S.: consumer anxiety, focus on essentials, soft biscuits category, channel shifting.
• Emerging markets: double-digit growth, sustained volume and value growth, share gains in key markets.
• North America actions: incremental pricing, cost control, opportunities in alternate channels.
• Cocoa market: cocoa prices expected to come down, cocoa butter prices down, potential benefits offsetting recent costs.
• Media investment plans: need to reinvest in chocolate and biscuits categories to support brands.

Europe had a strong quarter with good numbers and strong share gains, remaining resilient despite consumer frugality. The U.S. faced a difficult situation with a soft biscuits category due to consumer anxiety and focus on essentials. Emerging markets showed double-digit growth with sustained volume and value growth, including strong share gains in Brazil, India, and Mexico.

• Maintained full year outlook.
• Considerations like chocolate elasticity in Europe due to weather, North America volume projections (biscuits down 3% in H1, expected similar in H2), cocoa market fundamentals pointing to potential upside in 2026 supply.

• Weather impact on chocolate consumption in Europe.
• Consumer sentiment and economic uncertainties in North America affecting demand.
• Cocoa price fluctuations and their impact on costs and pricing.
• Potential impact of GLP-1 drugs on indulgent snacking categories (deemed minor currently).
• Retailer destocking in North America and its drivers.

Q: Andrew Lazar asks about key geographies and actions for North America.

A: Dirk Van de Put talks about global balance, Europe's resilience, U.S. challenges, emerging markets growth; Luca Zaramella discusses North America actions like incremental pricing, cost control, alternate channels.

Q: Peter Galbo asks about second half outlook and cocoa.

A: Dirk Van de Put talks about chocolate elasticity, U.S. consumer confidence; Luca Zaramella discusses cocoa market fundamentals, cocoa butter prices.

Q: Megan Clapp asks about second half outlook and regions.

A: Luca Zaramella talks about Europe weather impact, North America volume projections, emerging markets pricing.

Q: Robert Moskow asks about media investment.

A: Dirk Van de Put talks about chocolate price increases and need for media investment; Luca Zaramella clarifies working media protection.

Q: Alexia Howard asks about cash uses and GLP-1.

A: Luca Zaramella talks about share repurchase and debt; Dirk Van de Put discusses GLP-1 impact on volumes.

Q: Max Gumport asks about North America retailer destocking.

A: Dirk Van de Put talks about drivers of destocking and channel shifts.