Mondelez International, Inc. Q3 FY2026 earnings call

• Emerging Markets: Consumer confidence is resilient in India (positive) and Latin America (solid), though China remains softer. Snacking performs well across biscuits and chocolate. Distribution expansion continues aggressively, adding approximately 130,000 outlets in India and over one million stores in Brazil.
• Europe: The region achieved positive volume mix growth of 1.6 percentage points with improving share dynamics. Performance was partially offset by unseasonably hot weather which had a 1% negative impact. Strong ANC reinvestment and innovations like Biscoff and Milka Croissant are driving results.
• North America: Consumer confidence remains soft due to energy and fuel prices, creating a K-shaped economy where higher-income households drive growth. Mondelez posted positive organic sales growth through disciplined promo tactics and innovation, avoiding price cuts that competitors attempted. Share gains were noted in biscuits (Savor), candy, and bars (Zbar).
• General Strategy: Management emphasizes precise promotional execution rather than broad price reductions. Innovation and targeted activations are yielding high incrementality. The company continues to absorb costs related to geopolitical conflicts, such as the war in the Middle East.

The provided transcript excerpt does not contain specific financial data, revenue figures, or percentage contributions for individual product segments. It focuses primarily on regional performance and strategic commentary rather than detailed segmental financial breakdowns.

• FY 2026 Top-Line Outlook: Maintained, driven by strong performance in emerging markets and solid execution in developed markets despite soft consumer sentiment.
• FY 2026 EPS Outlook: Maintained. Management expects to reinvest any upside into the business (innovation, emerging markets, ANC) and absorb inflationary pressures from the Middle East conflict.
• FY 2027 EPS Outlook: Confidence remains high for strong EPS growth in 2027. This is expected to be driven by volume-led growth, continued strength in emerging markets, and effective management of inflationary headwinds in freight and commodities.

• Geopolitical Conflict: Inflation and supply chain disruptions driven by the conflict in the Middle East are impacting costs and consumer sentiment, particularly in India.
• Macroeconomic Volatility: Soft consumer confidence in North America persists due to energy and fuel prices. A K-shaped economy limits broader market recovery.
• Weather Risks: Unseasonably hot weather negatively impacted European growth by 1%, highlighting vulnerability to climate conditions affecting seasonal products.
• Commodity and Freight Costs: Rising inflation in freight and commodity inputs poses ongoing pressure, though management feels confident in absorbing these within current guidance.

Q: Andrew Lazar asked about the state of the consumer in key regions and sought clarity on the key drivers and visibility for maintaining strong EPS growth in 2027, specifically regarding price strategy in Europe.

A: Dirk Van de Put highlighted resilient consumer confidence in emerging markets (India/Latin America) versus softer conditions in Europe and North America. Amit Banati confirmed maintenance of FY2026 top-line and EPS guidance, noting that any upside will be reinvested into working areas like innovation and emerging markets while absorbing Middle East-related cost inflation. For FY2027, management expressed confidence in strong EPS growth driven by volume-led expansion and emerging market strength, despite macro volatility and commodity inflation.

Q: Peter Galbo inquired how Mondelez achieves positive organic sales growth in North America without cutting prices, asking if the environment is shifting toward price increases for 2027.

A: Luca Zaramella explained that success stems from precise promotional execution and frequency rather than price reductions. By fixing promotion depth and timing, Mondelez gained share in biscuits and candy. While U.S. ANC gross dollars increased, spending was optimized to ensure high incrementality from innovation launches like Savor and Zbar, proving that tactical precision outperforms broad price cuts even as peers consider raising prices.