Mondelez International, Inc. Q4 FY2025 earnings call

• Chocolate strategy: In 2025, chocolate market showed resilience despite volatility. Adjustments made in 2026 for some European markets with higher than expected elasticity. Plan to increase investments behind brands as cocoa coverage cost is better. Strong innovation agenda led by Biscoff. • North America: Consumer confidence low, snacking affected. Need to adapt by investing in awareness, using PPA, expanding channels, pushing certain brands, and supply chain modernization. • Emerging markets: Momentum seen, expected to continue growing, with less elasticity and more volume mix contribution. • Advertising spend: A&C line had adjustments, plan to step up working media investment in coming years. • Cocoa supply: Balancing supply in different regions, investing in Latin America and Asia, considering lab-grown cocoa.

No specific detailed segment performance breakdown by product segment with absolute terms and revenue contribution % provided in the transcript. Discussion focuses on chocolate category and various regions' performance.

• 2026 guidance: Prudent, with short-term pressure points in US biscuits category and European chocolate disruption. Guidance range due to cocoa dynamics flexibility. • Organic sales outlook: 0 to 2%, emerging markets expected to grow, developed markets with volume declines due to PPA. • 2027 outlook: Expect step up in investments, significant uplift in chocolate margins, aiming for strong EPS growth while continuing brand investment.

• Cocoa price volatility: Sudden decline in cocoa price could lead to unexpected competitive reactions. • Consumer behavior: Low consumer confidence and affordability concerns affecting snacking categories. • Competitive reactions: Potential reactions from competitors due to cocoa price changes and market dynamics.

Q: Andrew Lazar asks about Mondelez's chocolate strategy and impact of cocoa price fall.

A: Dirk Van de Put discusses chocolate strategy, adjustments in Europe, investment plans, and impact of cocoa price decline.

Q: Andrew Lazar asks about 2026 guidance and cocoa environment.

A: Luca Zaramella talks about 2026 guidance prudence, short-term pressure points, and cocoa supply-demand dynamics.

Q: Peter Galbo asks about cost phasing and price investments in chocolate.

A: Luca Zaramella explains inventory accounting impact on costs and pricing phasing.

Q: Peter Galbo asks about North America market.

A: Dirk Van de Put discusses North America consumer situation, strategies, and supply chain program.

Q: Megan Clapp asks about chocolate pricing and volume outlook.

A: Luca Zaramella talks about neutral to positive balance in chocolate pricing and volume momentum in emerging markets.

Q: Michael Lavery asks about advertising spend and emerging markets.

A: Luca Zaramella discusses A&C investment and LatAm market performance.

Q: Chris Carey asks about volume trajectory change.

A: Dirk Van de Put talks about volume growth regions and phasing.

Q: David Palmer asks about European chocolate profitability recovery.

A: Luca Zaramella discusses path to profit recovery and monitoring competitive reactions.

Q: Scott Marks asks about GLP-1 and cocoa region investments.

A: Dirk Van de Put talks about GLP-1 impact and cocoa region investment plans