Mondelez International, Inc. Q3 FY2025 earnings call

• Europe: Consumer confidence stable; biscuits, cakes, pastries, and meals perform well; chocolate categories in line but affected by cocoa price increases; fixing pockets of pressure from competitive pricing and retailer margin issues; heatwave and downsizing in UK and Germany affected volumes, but seeing improvement from price repositioning.
• U.S.: Consumer concerned about economy, seeking value, shifting to channels like club, value, and e-commerce; some premium and better-for-you segments (e.g., protein-related, Give & Go) doing well; working on channel expansion, promotions, and PPA strategies to address biscuit category challenges.
• Emerging Markets: Varies by market; India and Brazil show growth, Mexico is improving, while Argentina and China have specific challenges but overall positive outlook.
• Supply Chain: New multiyear North America supply chain program to address cost in U.S. bakeries and logistics system optimization, expected to impact from 2027.

In Europe, biscuits, cakes, pastries, and meals businesses are performing well with share and volume/mix growth. Chocolate categories are generally in line, but cocoa price increases (about 30%) have caused pockets of pressure. The U.S. biscuits category is facing volume decline due to consumer economic concerns and value-seeking behavior, but some premium and better-for-you segments (like protein-related, Give & Go) are doing well. Emerging markets vary: India and Brazil show growth, while Argentina and China have challenges. Revenue contribution details weren't explicitly given in absolute terms with percentages, but segment performances are described by their market dynamics.

• 2025: Guidance adjusted due to tariffs, material destocking in U.S., heatwave in Europe, and higher chocolate elasticities in Europe. Guiding for over 4% organic net revenue growth in Q4, with implied EPS growth due to nonrecurring tax impact last year. Actions taken to improve volume trend in U.S. and Europe, including additional pricing in U.S.
• 2026: Premature to fully outline, but focusing on cocoa levels, coverage strategies to participate in cocoa potential declines, optimizing GP dollars, and commercial approach to chocolate, with confidence in plans for chocolate business.

• Consumer confidence issues in various regions affecting purchasing behavior.
• Cocoa price volatility impacting costs and pricing strategies.
• Competitive pressure in certain markets affecting market share.
• Retailer margin issues in Europe causing pockets of pressure.
• U.S. government shutdown impacting consumer confidence in the biscuits category.

Q: Andrew Lazar asks about Europe pricing and movements, particularly price gap management in European markets.

A: Dirk Van de Put responds on consumer confidence stability, segment performance, cocoa impact, and price gap management in Europe, including heatwave and downsizing effects and improvement from price repositioning.

Q: Andrew Lazar follows up on 2025 guidance, Q4 implications, and 2026 outlook.

A: Luca Zaramella discusses 2025 guidance adjustments due to various impacts, Q4 top line step-up, and 2026 plans focusing on cocoa levels and chocolate business strategies.

Q: Peter Galbo asks about U.S. path to growth and top line visibility for 2026.

A: Dirk Van de Put and Luca Zaramella discuss U.S. consumer behavior, channel shifts, premium segments, and 2026 top line components including Europe, emerging markets, and U.S. efforts.

Q: David Palmer asks about Europe price elasticity and outlook.

A: Dirk Van de Put explains price increase impacts, elasticity levels, and adjustments to formats and price points to address consumer acceptance.

Q: Megan Clapp asks about Q4 organic sales drive and North America outlook.

A: Luca Zaramella talks about Europe Christmas activation, emerging markets performance, and North America projected rebound with pricing and promo adjustments.

Q: Thomas Palmer asks about SG&A and Europe elasticity.

A: Luca Zaramella discusses SG&A components and Dirk Van de Put explains elasticity in Europe and seasonal vs non-seasonal products.

Q: Christopher Carey asks about North America strategy and SG&A investment.

A: Dirk Van de Put and Luca Zaramella discuss North America strategy, value vs margin strategies, and SG&A investment plans for 2026.