Contacts: Tracey Noe (Media) Shep Dunlap (Investors)
Contacts: Tracey Noe (Media) Shep Dunlap (Investors) 1-847-943-5678 1-847-943-5454 news@mdlz.com ir@mdlz.com
Return of capital to shareholders was $2.8 billion through the third quarter of the year CHICAGO, Ill. – October 29, 2026 – Mondelēz International, Inc. (Nasdaq: MDLZ) today reported its third quarter 2026 results.
“We delivered strong third-quarter results, driven by broad based volume growth and robust share performance. We continue to see top- and bottom-line growth momentum across both developed and emerging markets, while significantly reinvesting in our brands, innovation, and distribution,” said Dirk Van de Put, Chairman and Chief Executive Officer. "We are resolute in delivering volume-led, compounding earnings growth that creates value for shareholders. We remain confident that our attractive categories, iconic brands, advantaged geographic footprint, and consumer-centric capabilities will sustain our performance for years to come.
Additionally, we are delighted to announce our recent agreement to acquire Undercover Snacks, a delicious, crunchy quinoa crisp line that highlights our continued expansion in the high-growth permissible indulgence segment. With chocolate and frosted varieties containing simple ingredients, Undercover Snacks is rapidly earning strong consumer preference and has a clear runway to expand household penetration and distribution.” 1
increased 2.3 percent driven by our underlying Organic Net Revenue growth of 2.1 percent and favorable currency-related items, partially offset by lapping prior year net revenue from a divestiture. Organic Net Revenue growth was driven by favorable volume/mix and higher net pricing.
increased $1,312 million, and gross profit margin increased 1260 basis points to 39.4 percent primarily driven by a favorable year-over-year change in mark-to- market impacts from commodity and foreign currency derivatives and an increase in Adjusted Gross Profit 1 margin, partially offset by incremental costs due to geopolitical conflicts. Adjusted Gross Profit increased $414 million at constant currency and Adjusted Gross Profit margin increased 380 basis points to 34.2 percent driven primarily by lower raw material costs, lower manufacturing costs driven by productivity, favorable volume/mix and higher net pricing.
increased $1,014 million, and operating income margin was 17.6 percent, up 1000 basis points due primarily to a favorable year-over-year change in mark-to- market impacts from commodity and foreign currency derivatives, higher Adjusted Operating Income 1 margin and a favorable year-over-year change in acquisition- related items, partially offset by higher restructuring charges, higher intangible asset impairment charges, incremental costs due to geopolitical conflicts and higher costs incurred for the ERP System Implementation program. Adjusted Operating Income increased $199 million at constant currency and Adjusted Operating Income margin increased 190 basis points to 13.9 percent, driven primarily by lower raw material costs, lower manufacturing costs driven by productivity, higher net pricing and favorable volume/mix, partially offset by higher other selling, general and administrative expenses and higher advertising and consumer promotion costs.
was $1.02, up 78.9 percent, primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, a favorable year-over-year change in acquisition-related items and lapping prior year pension participation charges. These favorable items were partially offset by lapping a prior year gain on equity method investment transactions, higher restructuring charges, higher costs incurred for the ERP System Implementation program, higher intangible asset impairment charges, lapping a prior year favorable resolution of tax matters and incremental costs due to geopolitical conflicts.
was $0.78, up 5.5 percent on a constant currency basis. The increase in Adjusted EPS 1 was driven by operating increases and fewer shares outstanding, partially offset by higher income tax, higher interest and other expense and lower equity method investment net earnings. 3
: The company returned $2.8 billion to shareholders in cash dividends and share repurchases in the first nine months of 2026.
Mondelēz International provides its outlook on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including future changes in foreign currency rates. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details. For 2026, the company reaffirms Organic Net Revenue growth of at least 2 percent and Adjusted EPS growth in the range of flat to 5 percent on a constant currency basis. The company also expects 2026 Free Cash Flow of approximately $3 billion. The company currently estimates currency translation would increase 2026 net revenue growth by approximately 1.5 percent 3 and increase Adjusted EPS by $0.04 3 . Outlook is provided in the context of greater than usual volatility, including geopolitical, trade and regulatory uncertainty and commodity prices. This outlook does not reflect any potential tariff changes to United States-Mexico- Canada Agreement ("USMCA") compliant trade.
Mondelēz International will host a conference call for investors at 5 p.m. ET today. A listen-only webcast will be provided at www.mondelezinternational.com . An archive of the webcast will be available on the company’s web site.
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ .
1. Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in both reported and constant currency are non-GAAP financial measures. Please see discussion of non- GAAP financial measures at the end of this press release for more information.
2. Net earnings attributable to Mondelēz International. 4 3. Currency estimate is based on published rates from XE.com on October 22, 2026.
Emerging markets consist of the entire Latin America region; the Asia, Middle East and Africa region excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.
Developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the Asia, Middle East and Africa region.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words, and variations of the words, “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” “target,” "remain," “potential,” “commitment,” “outlook,” “continue” or any other similar words.
Although we believe that the expectations reflected in any of our forward- looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control and are amplified by ongoing macroeconomic volatility and uncertainty, including current and potential trade and tariff actions affecting the countries where we operate. Important factors that could cause our actual results or performance to differ materially from those contained in or implied by our forward-looking statements include, but are not limited to, the following:
• weakness and/or volatility in macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation) and the instability of certain financial institutions; 5 • risks from operating globally including geopolitical, trade, tariff and regulatory uncertainties affecting developed and emerging markets;
• volatility of cocoa and other commodity input costs, our ability to effectively hedge such costs and the availability of commodities;
• geopolitical uncertainty, including the impact of ongoing or new developments in Ukraine and the Middle East, related current and future sanctions imposed by governments and other authorities and related impacts, including on our business operations, employees, reputation, brands, financial condition and results of operations;
• competition and our response to channel shifts and pricing and other competitive pressures;
• weakness in consumer spending and/or changes in consumer preferences and demand, including evolving health and wellness trends, and our ability to predict, identify, interpret and meet these changes;
• the outcome and effects on us of legal and tax proceedings and government investigations;
• unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and supply, commodity, labor and transportation constraints;
• our ability to identify, complete, manage and realize the full extent of the benefits, cost savings, efficiencies and/or synergies presented by strategic acquisitions and other transactions as well as other strategic initiatives, such as our ERP System Implementation program;
• restructuring actions and other transformation initiatives not yielding the anticipated benefits;
• changes in the assumptions on which restructuring actions or other transformation initiatives are based;
• consolidation of retail customers and competition with retailer and other economy brands;
• compliance with legal, regulatory, tax and benefit laws and related changes, claims or actions, including evolving and potentially inconsistent federal, state, local and foreign requirements regarding food ingredients, additives, labeling and marketing;
• perceived or actual product quality issues or product recalls, or changing consumer, media, governmental or scientific perceptions of our products or their ingredients;
• failure to maintain effective internal control over financial reporting or disclosure controls and procedures; 6 • our ability to protect our intellectual property and intangible assets;
• tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes;
• volatility of and access to capital or other markets, interest rates, the effectiveness of our cash management programs and our liquidity;
• significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets; and
• the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q.
There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. We disclaim and do not undertake any obligation to update or revise any forward- looking statement in this press release except as required by applicable law or regulation. In addition, historical, current and forward-looking sustainability- related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. 7 Schedule 1
September 30, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Cash and cash equivalents $ 1,628 $ 2,125 Trade receivables 4,919 3,903 Other receivables 955 955 Inventories 4,441 4,419 Other current assets 1,845 1,549 Total current assets 13,788 12,951 Property, plant and 10,620 10,667 equipment, net Operating lease 738 731 right-of-use assets Goodwill 24,025 24,336 Intangible assets, net 19,346 19,628 Prepaid pension assets 1,281 1,220 Deferred income taxes 82 336 Equity method investments 694 667 Other assets 1,202 951 TOTAL ASSETS $ 71,776 $ 71,487 LIABILITIES Short-term borrowings $ 3,653 $ 2,688 Current portion of 1,739 1,295 long-term debt Accounts payable 9,510 10,139 Accrued marketing 2,899 2,787 Accrued employment costs 1,032 1,000 Other current liabilities 3,566 3,955 Total current liabilities 22,399 21,864 Long-term debt 16,351 17,222 Long-term operating lease 591 599 liabilities Deferred income taxes 3,587 3,530 Accrued pension costs 351 422 Accrued postretirement 73 74 health care costs Other liabilities 1,765 1,885 TOTAL LIABILITIES 45,117 45,596 EQUITY Common Stock — — Additional paid-in capital 32,377 32,322 Retained earnings 37,876 36,413 Accumulated other -11,358 -11,364 comprehensive losses Treasury stock, at cost -32,287 -31,533 Total Mondelēz International 26,608 25,838 Shareholders' Equity Noncontrolling interest 51 53 TOTAL EQUITY 26,659 25,891 TOTAL LIABILITIES AND $ 71,776 $ 71,487 EQUITY
CASH PROVIDED BY/(USED For the Nine Months IN) OPERATING Ended September 30, ACTIVITIES 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net earnings $ 3,424 $ 1,797 Adjustments to reconcile net earnings to operating cash flows: Depreciation and 1,040 1,006 amortization Stock-based compensation 133 84 expense Deferred income tax 293 -158 provision/(benefit) Asset impairments and accelerated 86 55 depreciation Gain on divestiture -1 — Loss on equity method investment 2 — transactions Equity method investment -48 -54 net earnings Distributions from equity method 45 45 investments Unrealized (gain)/loss on derivative -1,091 1,161 contracts Contingent consideration -44 -26 adjustments Other non-cash items, -30 109 net Changes in assets and liabilities, net of acquisitions and divestitures:
Receivables, net -1,212 -92 Inventories -89 -967 Accounts payable -373 -159 Other current assets 261 -30 Other current 352 -903 liabilities Change in pension and postretirement -142 249 assets and liabilities, net Net cash provided by operating 2,606 2,117 activities CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES Capital expenditures -947 -881 Acquisitions, net of — -15 cash received Proceeds from 1 4 divestitures Proceeds from derivative 210 54 settlements Payments for derivative -455 -165 settlements Proceeds from 24 65 investments Proceeds from sales of property, plant 4 8 and equipment and other Net cash used in -1,163 -930 investing activities CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES Issuances of commercial paper, 2,280 — maturities greater than 90 days Repayments of commercial paper, -1,564 — maturities greater than 90 days Net issuance of 297 2,569 short-term borrowings Long-term debt proceeds 1,074 1,594 Long-term debt -1,271 -1,782 repayments Repurchases of Common -845 -1,893 Stock Dividends paid -1,927 -1,842 Other 4 8 Net cash used in -1,952 -1,346 financing activities Effect of exchange rate changes on cash, -20 225 cash equivalents and restricted cash Cash, cash equivalents and restricted cash:
(Decrease)/increase -529 66 Balance at beginning of 2,195 1,400 period Balance at end of period $ 1,666 $ 1,466
In discussing its financial results and guidance, the company presents the following financial measures that are not in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”): Organic Net Revenue growth, Adjusted Gross Profit, Adjusted Operating Income, Adjusted Earnings Per Share (“EPS”) and Free Cash Flow. The company also presents financial information, including certain of these non-GAAP financial measures, on a constant currency basis.
Management uses non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of business performance and as a factor in determining incentive compensation. The company believes that non-GAAP financial measures, when used in connection with results reported in accordance with U.S. GAAP, provide additional information to facilitate comparisons of our historical operating results and to enable a more comprehensive understanding of trends in our underlying operating results. The company also believes that presenting these measures allows investors to view the company's performance using the same measures that management and our Board of Directors use in evaluating the company’s business performance and trends. However, non-GAAP financial measures should be considered in addition to, and not as substitutes for, financial information prepared in accordance with U.S. GAAP. In addition, the company’s non-GAAP financial measures may not be the same as or comparable to similar non- GAAP measures presented by other companies.
The company’s primary non-GAAP financial measures and corresponding metrics, listed below, reflect how we evaluate our current and prior year operating results. As new events or circumstances arise, these definitions could change. When our definitions change, the company provides the updated definitions and presents the related non-GAAP historical results on a comparable basis. When items no longer impact the company’s current or future presentation of non-GAAP operating results, the company removes these items from its non-GAAP definitions.
“Organic Net Revenue” is defined as net revenues (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of acquisitions, divestitures and currency-related items. The company believes that Organic net revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results. Organic Net Revenue growth is presented on a consolidated basis, for each of our segments and for our emerging markets and developed markets, and these underlying measures are also reconciled to the most comparable U.S. GAAP financial measures.
“Adjusted Gross Profit” is defined as gross profit (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of: restructuring charges, certain acquisition-related items, certain divestiture- related items, mark-to-market impacts from commodity and foreign currency derivative contracts economically hedging forecasted transactions, incremental costs due to geopolitical conflicts and certain operating costs from the ERP System Implementation program. The company also presents Adjusted Gross Profit margin, which is subject to the same adjustments as Adjusted Gross Profit. The company also evaluates growth in the company’s Adjusted Gross Profit on a constant currency basis.
“Adjusted Operating Income” is defined as operating income (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of: restructuring charges; intangible asset impairment charges; divestiture-related items; acquisition-related items; remeasurement of net monetary position of highly inflationary countries; mark-to-market impacts from commodity and foreign currency derivative contracts economically hedging forecasted transactions; resolution of tax matters; incremental costs due to geopolitical conflicts and operating costs from the ERP System Implementation program. The company also presents Adjusted Operating Income margin, which is subject to the same adjustments as Adjusted Operating Income. The company also evaluates growth in our Adjusted Operating Income on a constant currency basis.
“Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International (the most comparable U.S. GAAP financial measure) from continuing operations excluding, when they occur, the impacts of the items listed in the Adjusted Operating Income definition as well as pension participation changes, initial impacts from enacted tax law changes and gains or losses on equity method investment transactions. The tax impacts of the items excluded from 11 the company’s U.S. GAAP results were computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. The company also evaluates growth in the company’s Adjusted EPS on a constant currency basis.
“Free Cash Flow” is defined as net cash provided by operating activities (the most comparable U.S. GAAP financial measure) less capital expenditures. Free Cash Flow is the company’s primary measure used to monitor its cash flow performance.
See the attached schedules for supplemental financial data and corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable U.S. GAAP financial measures for the three and nine months ended September 30, 2026 and September 30, 2025. See Items Impacting Comparability of Operating Results below for more information about the items referenced in these definitions that specifically impacted the company’s results.
The company considers quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of its ongoing financial and business performance and trends. The company identifies these based on how management views the company’s business; makes financial, operating and planning decisions; and evaluates the company’s ongoing performance. The below items are adjusted for in the company’s non-GAAP financial measures to better facilitate comparisons of its underlying performance across periods, as they are highly variable or unusual and of a size that may substantially impact its reported operations for a period. In addition, the company discloses the impact of currency-related items on its financial results to reflect results on a constant currency basis. See below for a description of adjustments to the company’s U.S. GAAP financial measures included herein.
– Beginning in the fourth quarter of 2025, the company initiated new restructuring actions to reduce its cost structure and streamline its operations. The charges associated with those actions primarily relate to severance and other implementation costs. The company completed its previous Simplify to Grow Program in 2024. Following the completion of that earlier restructuring program, any adjustments to the liabilities for previously recorded charges, which were immaterial for each period presented, continue to be reflected within this item.
– Reflects non-cash impairments of certain of the company's brands in connection with our indefinite-life intangible asset impairment testing.
– The company excludes unrealized gains and losses (mark-to-market impacts) from commodity and foreign currency derivative contracts economically hedging forecasted transactions from its non-GAAP earnings measures. The mark-to-market impacts of those derivatives are excluded until the related gains or losses are realized. Since the company purchases commodity and foreign currency derivative contracts to mitigate price volatility primarily for inventory requirements in future periods, the company makes this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of its underlying operating performance across periods.
– Includes acquisition-related costs, acquisition integration costs, contingent consideration adjustments, inventory step-ups and gains from acquisitions. Acquisition-related costs include third-party advisor, investment banking and legal fees. Acquisition integration costs include costs related to the integration of operations from acquisitions. Contingent consideration adjustments include any changes made to contingent compensation liabilities for earn-outs related to acquisitions that do not relate to recurring employee compensation expense. Other acquisition-related items include incremental costs from inventory step-ups associated with acquired companies related to the fair market valuation of the acquired inventory and acquisition gains from the remeasurement of an existing noncontrolling investment to fair value when the company acquires a controlling interest in the investee.
– Includes operating results from divestitures, divestiture-related costs and gains or losses on divestitures. Divestitures may include sales of businesses, exits of major product lines upon completion of a sale or licensing agreement, or sales of equity method investments. Divestiture-related costs include costs incurred in relation to the preparation and completion of divestiture transactions (including one-time costs such as severance related to the elimination of stranded costs) as well as costs incurred associated with publicly announced processes to sell businesses. 12
– Reflects impacts related to the ongoing conflicts in the Middle East and Ukraine. Includes costs related to conflict-related destruction of inventory, transportation surcharges, evacuation costs and committed compensation.
– In July 2024, the company's Board of Directors approved funding of $1.2 billion for a multi-year systems transformation program to upgrade the company global ERP and supply chain systems, which is comprised of both capital expenditures and operating expenses, of which a majority is expected to be operating expenses. The operating expenses associated with the ERP System Implementation represent incremental transformational costs above the normal ongoing level of spending on information technology to support operations. These expenses include third-party consulting fees, direct labor costs associated with the program, accelerated depreciation of our existing SAP financial systems and various other expenses, all associated with the implementation of our information technology upgrades. During the quarter ended September 30, 2026, the company completed the implementation of the new ERP system for our North America and Latin America segments, which was the first phase of the multi-phase global ERP implementation program. The new ERP systems for the remaining segments continue to be implemented in future phases, with expected completion by year-end 2028.
Remeasurement of net monetary position of highly inflationary countries – The company’s operations in Argentina, Türkiye, Egypt and Nigeria are currently accounted for as highly inflationary. The company excludes remeasurement gains and losses of the monetary assets and liabilities of its subsidiaries in highly inflationary economies and the realized gains and losses from derivatives that mitigate the foreign currency volatility related to the remeasurement of the respective monetary assets or liabilities from its non-GAAP earnings measures.
– Consists of the charges incurred, primarily gains or losses from pension curtailments and settlements, including settlement losses from the full or partial buy-out of the company's pension plans, as well as costs incurred when employee groups are withdrawn from multiemployer pension plans. The company excludes these charges from its non-GAAP results because those amounts do not reflect the company's ongoing pension obligations.
– Consists of the reversals and settlements of unusual and significant indirect tax matters. Due to the unique nature of these resolutions, the company believes it to be infrequent and therefore excludes it from our non-GAAP earnings measures to better facilitate comparisons of the company's underlying operating performance across periods.
– Initial impacts from enacted tax law changes include items such as the remeasurement of deferred tax balances and transition taxes from tax reforms. The company excludes initial impacts from enacted tax law changes from the non- GAAP financial measures as they do not reflect the company's ongoing tax obligations under the enacted tax law.
Gains and losses on equity method investment transactions – The company excludes gains and losses from partial or full sales of equity method investments, as well as impairments or other non-routine transactions related to those investments.
– Management also evaluates the operating performance of the company and its international subsidiaries on a constant currency basis. The company's non-GAAP measures presented on a constant currency basis exclude the effects of currency translation rate changes and extreme pricing increases in Argentina.
• Currency translation rate changes – the company determines its constant currency operating results by dividing or multiplying, as appropriate, the current period local currency operating results by the currency exchange rates used to translate the company’s financial statements in the comparable prior year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rates had not changed from the comparable prior year period. Therefore, currency translation rate changes are equal to current period local currency operating results multiplied by the change in average foreign currency exchange rates between the current fiscal period and the corresponding period of the prior fiscal year.
• Extreme Pricing – during December 2023, the Argentinean peso significantly devalued. The peso's devaluation and potential resulting distortion on the company's non-GAAP Organic Net Revenue, Organic Net Revenue growth and other constant currency growth rate measures resulted in our decision to exclude the impact of pricing increases in excess of 26% year-over-year ("extreme pricing") in Argentina, from these measures beginning in the first quarter of 2024. The benchmark of 26% represents the minimum annual 13 inflation rate for each year over a 3-year period which would result in a cumulative inflation rate in excess of 100%, the level at which an economy is considered hyperinflationary under U.S. GAAP.
The company’s Organic Net Revenue growth, Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense, Adjusted Effective Tax Rate and Free Cash Flow for full-year 2026 are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results such as the impact of changes in currency exchange rates, intangible asset impairment charges, acquisitions and divestitures. Because GAAP financial measures on a forward-looking basis are not accessible and reconciling information is not available without unreasonable effort, the company has not provided that information with regard to the non-GAAP financial measures in the outlook. The company is not able to reconcile its projected Organic Net Revenue growth to its projected reported net revenue growth for the full-year 2026 because the company is unable to predict during this period the impacts from potential acquisitions or divestitures, as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company’s operations are outside the U.S. The company is not able to reconcile the projected Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense and Adjusted Effective Tax Rate to the company's projected reported diluted EPS growth, reported interest and other expense, net, and reported effective tax rate, respectively, for full- year 2026 due to several factors, which could include: the company's ability to predict during this period mark-to-market impacts from commodity and foreign currency derivative contracts, impacts of any impairment charges that may arise in a future period and impacts from potential acquisitions or divestitures as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company's operations are outside the U.S. The company is not able to reconcile the projected Free Cash Flow to the projected net cash from operating activities for full-year 2026 because the company is unable to predict during this period the timing and amount of capital expenditures impacting cash flow. Therefore, because of the uncertainty and variability of the nature and amounts of future adjustments, which could be significant, the company is unable to provide a reconciliation of these measures without unreasonable effort. 14 Schedule 4
Schedule 7 Mondelēz International, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Measures Net Cash Provided by Operating Activities to Free Cash Flow (in millions of U.S. dollars) (Unaudited)
Full text with the tables
Exhibit 99.1
Contacts: Tracey Noe (Media) Shep Dunlap (Investors)
1-847-943-5678 1-847-943-5454
news@mdlz.com ir@mdlz.com
Mondelēz International Reports Q3 2026 Results
Third Quarter Highlights
1
Net Revenues +2.3%, Organ i c Net Revenues +2.1%, Volume/Mix +1.8%
Diluted EPS increased +78.9% to $1.02
Adjusted EPS was $0.78 which increased +5.5% on a constant currency basis
Year-to-date cash provided by operating activities was $2.6 billion
and Free Cash Flow was $1.7 billion
Return of capital to shareholders was $2.8 billion through the third quarter of
the year
CHICAGO, Ill. – October 29, 2026 – Mondelēz International, Inc. (Nasdaq: MDLZ)
today reported its third quarter 2026 results.
“We delivered strong third-quarter results, driven by broad based volume growth
and robust share performance. We continue to see top- and bottom-line growth
momentum across both developed and emerging markets, while significantly
reinvesting in our brands, innovation, and distribution,” said Dirk Van de Put,
Chairman and Chief Executive Officer. "We are resolute in delivering volume-led,
compounding earnings growth that creates value for shareholders. We remain
confident that our attractive categories, iconic brands, advantaged geographic
footprint, and consumer-centric capabilities will sustain our performance for
years to come.
Additionally, we are delighted to announce our recent agreement to acquire
Undercover Snacks, a delicious, crunchy quinoa crisp line that highlights our
continued expansion in the high-growth permissible indulgence segment. With
chocolate and frosted varieties containing simple ingredients, Undercover Snacks
is rapidly earning strong consumer preference and has a clear runway to expand
household penetration and distribution.”
1
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I… 15… % 6.0 pp 12… % -0… pp
M…
N… $ 3,… 91… % $ 2,… -2… % -5… %
E…
D… $ 2.… 94… % $ 2.… -0… % -4… %
E…
2
Third Quarter Commentary
•
Net revenues
increased 2.3 percent driven by our underlying Organic Net Revenue growth of 2.1
percent and favorable currency-related items, partially offset by lapping prior
year net revenue from a divestiture. Organic Net Revenue growth was driven by
favorable volume/mix and higher net pricing.
•
Gross profit
increased $1,312 million, and gross profit margin increased 1260 basis points to
39.4 percent primarily driven by a favorable year-over-year change in mark-to-
market impacts from commodity and foreign currency derivatives and an increase
in Adjusted Gross Profit 1 margin, partially offset by incremental costs due to
geopolitical conflicts. Adjusted Gross Profit increased $414 million at constant
currency and Adjusted Gross Profit margin increased 380 basis points to 34.2
percent driven primarily by lower raw material costs, lower manufacturing costs
driven by productivity, favorable volume/mix and higher net pricing.
•
Operating income
increased $1,014 million, and operating income margin was 17.6 percent, up 1000
basis points due primarily to a favorable year-over-year change in mark-to-
market impacts from commodity and foreign currency derivatives, higher Adjusted
Operating Income 1 margin and a favorable year-over-year change in acquisition-
related items, partially offset by higher restructuring charges, higher
intangible asset impairment charges, incremental costs due to geopolitical
conflicts and higher costs incurred for the ERP System Implementation program.
Adjusted Operating Income increased $199 million at constant currency and
Adjusted Operating Income margin increased 190 basis points to 13.9 percent,
driven primarily by lower raw material costs, lower manufacturing costs driven
by productivity, higher net pricing and favorable volume/mix, partially offset
by higher other selling, general and administrative expenses and higher
advertising and consumer promotion costs.
•
Diluted EPS
was $1.02, up 78.9 percent, primarily driven by a favorable year-over-year
change in mark-to-market impacts from commodity and foreign currency
derivatives, a favorable year-over-year change in acquisition-related items and
lapping prior year pension participation charges. These favorable items were
partially offset by lapping a prior year gain on equity method investment
transactions, higher restructuring charges, higher costs incurred for the ERP
System Implementation program, higher intangible asset impairment charges,
lapping a prior year favorable resolution of tax matters and incremental costs
due to geopolitical conflicts.
•
Adjusted EPS
was $0.78, up 5.5 percent on a constant currency basis. The increase in Adjusted
EPS 1 was driven by operating increases and fewer shares outstanding, partially
offset by higher income tax, higher interest and other expense and lower equity
method investment net earnings.
3
•
Capital Return
: The company returned $2.8 billion to shareholders in cash dividends and share
repurchases in the first nine months of 2026.
2026 Outlook
Mondelēz International provides its outlook on a non-GAAP basis, as the company
cannot predict some elements that are included in reported GAAP results,
including future changes in foreign currency rates. Refer to the Outlook section
in the discussion of non-GAAP financial measures below for more details.
For 2026, the company reaffirms Organic Net Revenue growth of at least 2 percent
and Adjusted EPS growth in the range of flat to 5 percent on a constant currency
basis. The company also expects 2026 Free Cash Flow of approximately $3 billion.
The company currently estimates currency translation would increase 2026 net
revenue growth by approximately 1.5 percent 3 and increase Adjusted EPS by $0.04
3 .
Outlook is provided in the context of greater than usual volatility, including
geopolitical, trade and regulatory uncertainty and commodity prices. This
outlook does not reflect any potential tariff changes to United States-Mexico-
Canada Agreement ("USMCA") compliant trade.
Conference Call
Mondelēz International will host a conference call for investors at 5 p.m. ET
today. A listen-only webcast will be provided at www.mondelezinternational.com .
An archive of the webcast will be available on the company’s web site.
About Mondelēz International
Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in
over 150 countries around the world. With 2025 net revenues of approximately
$38.5 billion, MDLZ is leading the future of snacking with iconic global and
local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and
baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate.
Mondelēz International is a proud member of the Dow Jones Best-in-Class North
America and World Indices, formerly Dow Jones Sustainability Indices. Visit
www.mondelezinternational.com or follow the company on X at x.com/MDLZ .
End Notes
1. Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit
margin), Adjusted Operating Income (and Adjusted Operating Income margin),
Adjusted EPS, Free Cash Flow and presentation of amounts in both reported and
constant currency are non-GAAP financial measures. Please see discussion of non-
GAAP financial measures at the end of this press release for more information.
2. Net earnings attributable to Mondelēz International.
4
3. Currency estimate is based on published rates from XE.com on October 22,
2026.
Additional Definitions
Emerging markets consist of the entire Latin America region; the Asia, Middle
East and Africa region excluding Australia, New Zealand and Japan; and the
following countries from the Europe region: Russia, Ukraine, Türkiye,
Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria,
Romania, the Baltics and the East Adriatic countries.
Developed markets include the entire North America region, the Europe region
excluding the countries included in the emerging markets definition, and
Australia, New Zealand and Japan from the Asia, Middle East and Africa region.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements
other than statements of historical fact are “forward-looking statements” for
purposes of federal and state securities laws, including any projections of
earnings, revenue or other financial items; any statements of the plans,
strategies and objectives of management, including for future operations,
capital expenditures or share repurchases; any statements concerning proposed
new products, services, or developments; any statements regarding future
economic conditions or performance; any statements of belief or expectation; and
any statements of assumptions underlying any of the foregoing or other future
events. Forward-looking statements may include, among others, the words, and
variations of the words, “will,” “may,” “expect,” “would,” “could,” “might,”
“intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,”
“predict,” “project,” “drive,” “seek,” “aim,” “target,” "remain," “potential,”
“commitment,” “outlook,” “continue” or any other similar words.
Although we believe that the expectations reflected in any of our forward-
looking statements are reasonable, actual results or outcomes could differ
materially from those projected or assumed in any of our forward-looking
statements. Our future financial condition and results of operations, as well as
any forward-looking statements, are subject to change and to inherent risks and
uncertainties, many of which are beyond our control and are amplified by ongoing
macroeconomic volatility and uncertainty, including current and potential trade
and tariff actions affecting the countries where we operate. Important factors
that could cause our actual results or performance to differ materially from
those contained in or implied by our forward-looking statements include, but are
not limited to, the following:
• weakness and/or volatility in macroeconomic conditions in our markets,
including as a result of inflation (and related monetary policy actions by
governments in response to inflation) and the instability of certain financial
institutions;
5
• risks from operating globally including geopolitical, trade, tariff and
regulatory uncertainties affecting developed and emerging markets;
• volatility of cocoa and other commodity input costs, our ability to
effectively hedge such costs and the availability of commodities;
• geopolitical uncertainty, including the impact of ongoing or new developments
in Ukraine and the Middle East, related current and future sanctions imposed by
governments and other authorities and related impacts, including on our business
operations, employees, reputation, brands, financial condition and results of
operations;
• competition and our response to channel shifts and pricing and other
competitive pressures;
• pricing actions and customer and consumer responses to such actions;
• promotion and protection of our reputation and brand image;
• weakness in consumer spending and/or changes in consumer preferences and
demand, including evolving health and wellness trends, and our ability to
predict, identify, interpret and meet these changes;
• the outcome and effects on us of legal and tax proceedings and government
investigations;
• use of information technology and third party service providers;
• unanticipated disruptions to our business, such as malware incidents,
cyberattacks or other security breaches, and supply, commodity, labor and
transportation constraints;
• our ability to identify, complete, manage and realize the full extent of the
benefits, cost savings, efficiencies and/or synergies presented by strategic
acquisitions and other transactions as well as other strategic initiatives, such
as our ERP System Implementation program;
• our investments and our ownership interests in those investments;
• restructuring actions and other transformation initiatives not yielding the
anticipated benefits;
• changes in the assumptions on which restructuring actions or other
transformation initiatives are based;
• the impact of climate change on our supply chain and operations;
• global or regional health pandemics or epidemics;
• consolidation of retail customers and competition with retailer and other
economy brands;
• changes in our relationships with customers, suppliers or distributors;
• management of our workforce and shifts in labor availability or labor costs;
• compliance with legal, regulatory, tax and benefit laws and related changes,
claims or actions, including evolving and potentially inconsistent federal,
state, local and foreign requirements regarding food ingredients, additives,
labeling and marketing;
• perceived or actual product quality issues or product recalls, or changing
consumer, media, governmental or scientific perceptions of our products or their
ingredients;
• failure to maintain effective internal control over financial reporting or
disclosure controls and procedures;
6
• our ability to protect our intellectual property and intangible assets;
• tax matters including changes in tax laws and rates, disagreements with taxing
authorities and imposition of new taxes;
• changes in currency exchange rates, controls and restrictions;
• volatility of and access to capital or other markets, interest rates, the
effectiveness of our cash management programs and our liquidity;
• pension costs;
• significant changes in valuation factors that may adversely affect our
impairment testing of goodwill and intangible assets; and
• the risks and uncertainties, as they may be amended from time to time, set
forth in our filings with the U.S. Securities and Exchange Commission, including
our Annual Report on Form 10-K for the year ended December 31, 2025 and
subsequent Quarterly Reports on Form 10-Q.
There may be other factors not presently known to us or which we currently
consider to be immaterial that could cause our actual results to differ
materially from those projected in any forward-looking statements we make. We
disclaim and do not undertake any obligation to update or revise any forward-
looking statement in this press release except as required by applicable law or
regulation. In addition, historical, current and forward-looking sustainability-
related statements may be based on standards for measuring progress that are
still developing, internal controls and processes that continue to evolve, and
assumptions that are subject to change in the future.
7
Schedule 1
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of U.S. dollars and shares, except per share data)
(Unaudited)
For the For the
Three Nine
Months Months
Ended Ended
Septemb… Septemb…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 9,967 $ 9,744 $ 29,402 $ 28,041
revenu…
Cost of -6,043 -7,132 -18,689 -20,062
sales
Gross 3,924 2,612 10,713 7,979
profit
Sellin…
general
and -2,012 -1,795 -5,929 -5,231
admini…
expens…
Asset
impair…
and -128 -41 -194 -45
exit
costs
Gain on — — 1 —
divest…
Amorti…
of -26 -32 -79 -107
intang…
assets
Operat… 1,758 744 4,512 2,596
income
Benefit
plan 27 -27 85 -273
non-se…
income…
Intere…
and
other -64 -22 -202 -228
expens…
net
Earnin…
before 1,721 695 4,395 2,095
income
taxes
Income
tax -424 -137 -1,016 -521
provis…
Gain/(…
on
equity — 169 -3 169
method
invest…
transa…
Equity
method
invest… 11 19 48 54
net
earnin…
Net 1,308 746 3,424 1,797
earnin…
less:
Noncon… -3 -3 -11 -11
intere…
earnin…
Net
earnin…
attrib… $ 1,305 $ 743 $ 3,413 $ 1,786
to
Mondel…
Intern…
Per
share
data:
Basic
earnin…
per
share $ 1.02 $ 0.57 $ 2.66 $ 1.38
attrib…
to
Mondel…
Intern…
Diluted
earnin…
per
share $ 1.02 $ 0.57 $ 2.66 $ 1.37
attrib…
to
Mondel…
Intern…
8
Schedule 2
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of U.S. dollars)
(Unaudited)
September 30, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Cash and cash equivalents $ 1,628 $ 2,125
Trade receivables 4,919 3,903
Other receivables 955 955
Inventories 4,441 4,419
Other current assets 1,845 1,549
Total current assets 13,788 12,951
Property, plant and 10,620 10,667
equipment, net
Operating lease 738 731
right-of-use assets
Goodwill 24,025 24,336
Intangible assets, net 19,346 19,628
Prepaid pension assets 1,281 1,220
Deferred income taxes 82 336
Equity method investments 694 667
Other assets 1,202 951
TOTAL ASSETS $ 71,776 $ 71,487
LIABILITIES
Short-term borrowings $ 3,653 $ 2,688
Current portion of 1,739 1,295
long-term debt
Accounts payable 9,510 10,139
Accrued marketing 2,899 2,787
Accrued employment costs 1,032 1,000
Other current liabilities 3,566 3,955
Total current liabilities 22,399 21,864
Long-term debt 16,351 17,222
Long-term operating lease 591 599
liabilities
Deferred income taxes 3,587 3,530
Accrued pension costs 351 422
Accrued postretirement 73 74
health care costs
Other liabilities 1,765 1,885
TOTAL LIABILITIES 45,117 45,596
EQUITY
Common Stock — —
Additional paid-in capital 32,377 32,322
Retained earnings 37,876 36,413
Accumulated other -11,358 -11,364
comprehensive losses
Treasury stock, at cost -32,287 -31,533
Total Mondelēz
International 26,608 25,838
Shareholders' Equity
Noncontrolling interest 51 53
TOTAL EQUITY 26,659 25,891
TOTAL LIABILITIES AND $ 71,776 $ 71,487
EQUITY
9
Schedule 3
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions of U.S. dollars)
(Unaudited)
CASH PROVIDED BY/(USED For the Nine Months
IN) OPERATING Ended September 30,
ACTIVITIES 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net earnings $ 3,424 $ 1,797
Adjustments to reconcile
net earnings to
operating cash flows:
Depreciation and 1,040 1,006
amortization
Stock-based compensation 133 84
expense
Deferred income tax 293 -158
provision/(benefit)
Asset impairments and
accelerated 86 55
depreciation
Gain on divestiture -1 —
Loss on equity method
investment 2 —
transactions
Equity method investment -48 -54
net earnings
Distributions from
equity method 45 45
investments
Unrealized (gain)/loss
on derivative -1,091 1,161
contracts
Contingent consideration -44 -26
adjustments
Other non-cash items, -30 109
net
Changes in assets and
liabilities, net
of acquisitions and
divestitures:
Receivables, net -1,212 -92
Inventories -89 -967
Accounts payable -373 -159
Other current assets 261 -30
Other current 352 -903
liabilities
Change in pension and
postretirement -142 249
assets and liabilities,
net
Net cash provided by
operating 2,606 2,117
activities
CASH PROVIDED BY/(USED
IN) INVESTING
ACTIVITIES
Capital expenditures -947 -881
Acquisitions, net of — -15
cash received
Proceeds from 1 4
divestitures
Proceeds from derivative 210 54
settlements
Payments for derivative -455 -165
settlements
Proceeds from 24 65
investments
Proceeds from sales of
property, plant 4 8
and equipment and other
Net cash used in -1,163 -930
investing activities
CASH PROVIDED BY/(USED
IN) FINANCING
ACTIVITIES
Issuances of commercial
paper, 2,280 —
maturities greater than
90 days
Repayments of commercial
paper, -1,564 —
maturities greater than
90 days
Net issuance of 297 2,569
short-term borrowings
Long-term debt proceeds 1,074 1,594
Long-term debt -1,271 -1,782
repayments
Repurchases of Common -845 -1,893
Stock
Dividends paid -1,927 -1,842
Other 4 8
Net cash used in -1,952 -1,346
financing activities
Effect of exchange rate
changes on cash, -20 225
cash equivalents and
restricted cash
Cash, cash equivalents
and restricted
cash:
(Decrease)/increase -529 66
Balance at beginning of 2,195 1,400
period
Balance at end of period $ 1,666 $ 1,466
10
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Financial Measures
(Unaudited)
NON-GAAP FINANCIAL MEASURES
In discussing its financial results and guidance, the company presents the
following financial measures that are not in accordance with U.S. generally
accepted accounting principles (“U.S. GAAP”): Organic Net Revenue growth,
Adjusted Gross Profit, Adjusted Operating Income, Adjusted Earnings Per Share
(“EPS”) and Free Cash Flow. The company also presents financial information,
including certain of these non-GAAP financial measures, on a constant currency
basis.
Management uses non-GAAP financial measures internally to make operating and
strategic decisions, including the preparation of our annual operating plan,
evaluation of business performance and as a factor in determining incentive
compensation. The company believes that non-GAAP financial measures, when used
in connection with results reported in accordance with U.S. GAAP, provide
additional information to facilitate comparisons of our historical operating
results and to enable a more comprehensive understanding of trends in our
underlying operating results. The company also believes that presenting these
measures allows investors to view the company's performance using the same
measures that management and our Board of Directors use in evaluating the
company’s business performance and trends. However, non-GAAP financial measures
should be considered in addition to, and not as substitutes for, financial
information prepared in accordance with U.S. GAAP. In addition, the company’s
non-GAAP financial measures may not be the same as or comparable to similar non-
GAAP measures presented by other companies.
DEFINITIONS OF THE COMPANY’S NON-GAAP FINANCIAL MEASURES
The company’s primary non-GAAP financial measures and corresponding metrics,
listed below, reflect how we evaluate our current and prior year operating
results. As new events or circumstances arise, these definitions could change.
When our definitions change, the company provides the updated definitions and
presents the related non-GAAP historical results on a comparable basis. When
items no longer impact the company’s current or future presentation of non-GAAP
operating results, the company removes these items from its non-GAAP
definitions.
“Organic Net Revenue” is defined as net revenues (the most comparable U.S. GAAP
financial measure) excluding, when they occur, the impacts of acquisitions,
divestitures and currency-related items. The company believes that Organic net
revenue reflects the underlying growth from the ongoing activities of our
business and provides improved comparability of results. Organic Net Revenue
growth is presented on a consolidated basis, for each of our segments and for
our emerging markets and developed markets, and these underlying measures are
also reconciled to the most comparable U.S. GAAP financial measures.
“Adjusted Gross Profit” is defined as gross profit (the most comparable U.S.
GAAP financial measure) excluding, when they occur, the impacts of:
restructuring charges, certain acquisition-related items, certain divestiture-
related items, mark-to-market impacts from commodity and foreign currency
derivative contracts economically hedging forecasted transactions, incremental
costs due to geopolitical conflicts and certain operating costs from the ERP
System Implementation program. The company also presents Adjusted Gross Profit
margin, which is subject to the same adjustments as Adjusted Gross Profit. The
company also evaluates growth in the company’s Adjusted Gross Profit on a
constant currency basis.
“Adjusted Operating Income” is defined as operating income (the most comparable
U.S. GAAP financial measure) excluding, when they occur, the impacts of:
restructuring charges; intangible asset impairment charges; divestiture-related
items; acquisition-related items; remeasurement of net monetary position of
highly inflationary countries; mark-to-market impacts from commodity and foreign
currency derivative contracts economically hedging forecasted transactions;
resolution of tax matters; incremental costs due to geopolitical conflicts and
operating costs from the ERP System Implementation program. The company also
presents Adjusted Operating Income margin, which is subject to the same
adjustments as Adjusted Operating Income. The company also evaluates growth in
our Adjusted Operating Income on a constant currency basis.
“Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International
(the most comparable U.S. GAAP financial measure) from continuing operations
excluding, when they occur, the impacts of the items listed in the Adjusted
Operating Income definition as well as pension participation changes, initial
impacts from enacted tax law changes and gains or losses on equity method
investment transactions. The tax impacts of the items excluded from
11
the company’s U.S. GAAP results were computed based on the facts and tax
assumptions associated with each item, and such impacts have also been excluded
from Adjusted EPS. The company also evaluates growth in the company’s Adjusted
EPS on a constant currency basis.
“Free Cash Flow” is defined as net cash provided by operating activities (the
most comparable U.S. GAAP financial measure) less capital expenditures. Free
Cash Flow is the company’s primary measure used to monitor its cash flow
performance.
See the attached schedules for supplemental financial data and corresponding
reconciliations of the non-GAAP financial measures referred to above to the most
comparable U.S. GAAP financial measures for the three and nine months ended
September 30, 2026 and September 30, 2025. See Items Impacting Comparability of
Operating Results below for more information about the items referenced in these
definitions that specifically impacted the company’s results.
ITEMS IMPACTING COMPARABILITY OF FINANCIAL RESULTS
The company considers quantitative and qualitative factors in assessing whether
to adjust for the impact of items that may be significant or that could affect
an understanding of its ongoing financial and business performance and trends.
The company identifies these based on how management views the company’s
business; makes financial, operating and planning decisions; and evaluates the
company’s ongoing performance. The below items are adjusted for in the company’s
non-GAAP financial measures to better facilitate comparisons of its underlying
performance across periods, as they are highly variable or unusual and of a size
that may substantially impact its reported operations for a period. In addition,
the company discloses the impact of currency-related items on its financial
results to reflect results on a constant currency basis. See below for a
description of adjustments to the company’s U.S. GAAP financial measures
included herein.
Restructuring charges
– Beginning in the fourth quarter of 2025, the company initiated new
restructuring actions to reduce its cost structure and streamline its
operations. The charges associated with those actions primarily relate to
severance and other implementation costs. The company completed its previous
Simplify to Grow Program in 2024. Following the completion of that earlier
restructuring program, any adjustments to the liabilities for previously
recorded charges, which were immaterial for each period presented, continue to
be reflected within this item.
Intangible asset impairment charges
– Reflects non-cash impairments of certain of the company's brands in connection
with our indefinite-life intangible asset impairment testing.
Mark-to-market impacts from derivatives
– The company excludes unrealized gains and losses (mark-to-market impacts) from
commodity and foreign currency derivative contracts economically hedging
forecasted transactions from its non-GAAP earnings measures. The mark-to-market
impacts of those derivatives are excluded until the related gains or losses are
realized. Since the company purchases commodity and foreign currency derivative
contracts to mitigate price volatility primarily for inventory requirements in
future periods, the company makes this adjustment to remove the volatility of
these future inventory purchases on current operating results to facilitate
comparisons of its underlying operating performance across periods.
Acquisition-related items
– Includes acquisition-related costs, acquisition integration costs, contingent
consideration adjustments, inventory step-ups and gains from acquisitions.
Acquisition-related costs include third-party advisor, investment banking and
legal fees. Acquisition integration costs include costs related to the
integration of operations from acquisitions. Contingent consideration
adjustments include any changes made to contingent compensation liabilities for
earn-outs related to acquisitions that do not relate to recurring employee
compensation expense. Other acquisition-related items include incremental costs
from inventory step-ups associated with acquired companies related to the fair
market valuation of the acquired inventory and acquisition gains from the
remeasurement of an existing noncontrolling investment to fair value when the
company acquires a controlling interest in the investee.
Divestiture-related items
– Includes operating results from divestitures, divestiture-related costs and
gains or losses on divestitures. Divestitures may include sales of businesses,
exits of major product lines upon completion of a sale or licensing agreement,
or sales of equity method investments. Divestiture-related costs include costs
incurred in relation to the preparation and completion of divestiture
transactions (including one-time costs such as severance related to the
elimination of stranded costs) as well as costs incurred associated with
publicly announced processes to sell businesses.
12
Incremental costs due to geopolitical conflicts
– Reflects impacts related to the ongoing conflicts in the Middle East and
Ukraine. Includes costs related to conflict-related destruction of inventory,
transportation surcharges, evacuation costs and committed compensation.
ERP System Implementation costs
– In July 2024, the company's Board of Directors approved funding of $1.2
billion for a multi-year systems transformation program to upgrade the company
global ERP and supply chain systems, which is comprised of both capital
expenditures and operating expenses, of which a majority is expected to be
operating expenses. The operating expenses associated with the ERP System
Implementation represent incremental transformational costs above the normal
ongoing level of spending on information technology to support operations. These
expenses include third-party consulting fees, direct labor costs associated with
the program, accelerated depreciation of our existing SAP financial systems and
various other expenses, all associated with the implementation of our
information technology upgrades. During the quarter ended September 30, 2026,
the company completed the implementation of the new ERP system for our North
America and Latin America segments, which was the first phase of the multi-phase
global ERP implementation program. The new ERP systems for the remaining
segments continue to be implemented in future phases, with expected completion
by year-end 2028.
Remeasurement of net monetary position of highly inflationary countries – The
company’s operations in Argentina, Türkiye, Egypt and Nigeria are currently
accounted for as highly inflationary. The company excludes remeasurement gains
and losses of the monetary assets and liabilities of its subsidiaries in highly
inflationary economies and the realized gains and losses from derivatives that
mitigate the foreign currency volatility related to the remeasurement of the
respective monetary assets or liabilities from its non-GAAP earnings measures.
Pension participation changes
– Consists of the charges incurred, primarily gains or losses from pension
curtailments and settlements, including settlement losses from the full or
partial buy-out of the company's pension plans, as well as costs incurred when
employee groups are withdrawn from multiemployer pension plans. The company
excludes these charges from its non-GAAP results because those amounts do not
reflect the company's ongoing pension obligations.
Resolution of tax matters
– Consists of the reversals and settlements of unusual and significant indirect
tax matters. Due to the unique nature of these resolutions, the company believes
it to be infrequent and therefore excludes it from our non-GAAP earnings
measures to better facilitate comparisons of the company's underlying operating
performance across periods.
Initial impacts from enacted tax law changes
– Initial impacts from enacted tax law changes include items such as the
remeasurement of deferred tax balances and transition taxes from tax reforms.
The company excludes initial impacts from enacted tax law changes from the non-
GAAP financial measures as they do not reflect the company's ongoing tax
obligations under the enacted tax law.
Gains and losses on equity method investment transactions – The company excludes
gains and losses from partial or full sales of equity method investments, as
well as impairments or other non-routine transactions related to those
investments.
Currency-related items
– Management also evaluates the operating performance of the company and its
international subsidiaries on a constant currency basis. The company's non-GAAP
measures presented on a constant currency basis exclude the effects of currency
translation rate changes and extreme pricing increases in Argentina.
• Currency translation rate changes – the company determines its constant
currency operating results by dividing or multiplying, as appropriate, the
current period local currency operating results by the currency exchange rates
used to translate the company’s financial statements in the comparable prior
year period to determine what the current-period U.S. dollar operating results
would have been if the currency exchange rates had not changed from the
comparable prior year period. Therefore, currency translation rate changes are
equal to current period local currency operating results multiplied by the
change in average foreign currency exchange rates between the current fiscal
period and the corresponding period of the prior fiscal year.
• Extreme Pricing – during December 2023, the Argentinean peso significantly
devalued. The peso's devaluation and potential resulting distortion on the
company's non-GAAP Organic Net Revenue, Organic Net Revenue growth and other
constant currency growth rate measures resulted in our decision to exclude the
impact of pricing increases in excess of 26% year-over-year ("extreme pricing")
in Argentina, from these measures beginning in the first quarter of 2024. The
benchmark of 26% represents the minimum annual
13
inflation rate for each year over a 3-year period which would result in a
cumulative inflation rate in excess of 100%, the level at which an economy is
considered hyperinflationary under U.S. GAAP.
OUTLOOK
The company’s Organic Net Revenue growth, Adjusted EPS growth on a constant
currency basis, Adjusted Interest Expense, Adjusted Effective Tax Rate and Free
Cash Flow for full-year 2026 are non-GAAP financial measures that exclude or
otherwise adjust for items impacting comparability of financial results such as
the impact of changes in currency exchange rates, intangible asset impairment
charges, acquisitions and divestitures. Because GAAP financial measures on a
forward-looking basis are not accessible and reconciling information is not
available without unreasonable effort, the company has not provided that
information with regard to the non-GAAP financial measures in the outlook. The
company is not able to reconcile its projected Organic Net Revenue growth to its
projected reported net revenue growth for the full-year 2026 because the company
is unable to predict during this period the impacts from potential acquisitions
or divestitures, as well as the impact of currency translation due to the
unpredictability of future changes in currency exchange rates, which could be
material as a significant portion of the company’s operations are outside the
U.S. The company is not able to reconcile the projected Adjusted EPS growth on a
constant currency basis, Adjusted Interest Expense and Adjusted Effective Tax
Rate to the company's projected reported diluted EPS growth, reported interest
and other expense, net, and reported effective tax rate, respectively, for full-
year 2026 due to several factors, which could include: the company's ability to
predict during this period mark-to-market impacts from commodity and foreign
currency derivative contracts, impacts of any impairment charges that may arise
in a future period and impacts from potential acquisitions or divestitures as
well as the impact of currency translation due to the unpredictability of future
changes in currency exchange rates, which could be material as a significant
portion of the company's operations are outside the U.S. The company is not able
to reconcile the projected Free Cash Flow to the projected net cash from
operating activities for full-year 2026 because the company is unable to predict
during this period the timing and amount of capital expenditures impacting cash
flow. Therefore, because of the uncertainty and variability of the nature and
amounts of future adjustments, which could be significant, the company is unable
to provide a reconciliation of these measures without unreasonable effort.
14
Schedule 4
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Net Revenues
(in millions of U.S. dollars)
(Unaudited
)
… … … … …
… … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $ … $
… … … 4 … …
$ … $ … $ … $ … $ … $ … $
$ … $ … $ … $ … $ … $ … $
— — — … … —
$ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … % %
— … — … — … … … … … — … …
… … … … … …
… % … % … % … % … % … % %
… … … … … … — … … … … … …
… … … … … …
… … … … … … …
… … … … …
$ … $ … $ … $ … $ … $ … $
… … … … … …
$ … $ … $ … $ … $ … $ … $
$ … $ … $ … $ … $ … $ … $
— — — … … —
$ … $ … $ … $ … $ … $ … $
… % … % … % … % … % … % %
— … — … — … … … … … — … …
… … … … … …
… % … % … % … % … % … % %
… … … … … … … … … … … … …
… … … … … …
15
Schedule 5 a
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Gross Profit / Operating Income
(in millions of U.S. dollars) (Unaudited)
──────────────────────────────────────────────────────────────────────────────
16
Schedule 5b
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Gross Profit / Operating Income
(in millions of U.S. dollars) (Unaudited)
──────────────────────────────────────────────────────────────────────────────
17
Schedule 6a
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Tax Rate, Net Earnings and Diluted EPS
(in millions of U.S. dollars and shares, except per share data) (Unaudited)
…
… …
… …
… …
… … …
/ … …
… … …
──────────────────────────────────────────────────────────────────────────────
$ $ $ …
…
…
…
…
…
…
—
—
$ $ $ …
…
$ …
…
% …
% …
% …
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/ …
…
$ $ $ …
—
…
…
…
…
…
…
…
—
…
$ $ $ …
…
18
Schedule 6b
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Tax Rate, Net Earnings and Diluted EPS
(in millions of U.S. dollars and shares, except per share data) (Unaudited)
…
… …
… …
… …
… … …
/ … …
… … …
──────────────────────────────────────────────────────────────────────────────
$ $ $ …
…
…
…
…
—
…
…
…
—
…
—
—
$ $ $ …
…
$ …
…
% …
% …
% …
… …
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/ …
…
$ $ $ …
…
…
…
…
—
—
…
…
…
…
—
—
…
$ $ $ …
…
19
Schedule 7
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Net Cash Provided by Operating Activities to Free Cash Flow
(in millions of U.S. dollars)
(Unaudited)
For the Nine Months Ended
September 30, 2026 2025 $ Change
──────────────────────────────────────────────────────────────────────────────
Net Cash Provided by
Operating $ 2,606 $ 2,117 $ 489
Activities (GAAP)
Capital Expenditures -947 -881 -66
Free Cash Flow (Non-GAAP) $ 1,659 $ 1,236 $ 423
20