MDLZ - Earnings call transcript Q1 2022 | Mondelez International, Inc.

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Operator

Good day, and welcome to the Mondelez International First Quarter 2022 Earnings Conference Call. Today's call is scheduled to last about one hour, including remarks by the Mondelez management and the question-and-answer session. [Operator Instructions] I'd now like to turn the call over to Mr. Shep Dunlap, Vice President, Investor Relations for Mondelez. Please go ahead, sir.

Shep Dunlap

for thanks and afternoon, joining us. Good today and CEO; me are CFO. Dirk Chairman our Put, de and Van With Luca our Zaramella, Earlier our our which out today, and we slides, presentation press are website. release on available sent

our During factors today. performance. on statements Q company's details about to XX-K, These uncertainties. may results cautionary we'll contained differ this and see to are the things Please statements. filings risks make and call, X-K we statements for the our forward-looking on how in Actual based risk materially statements and due refer more forward-looking

As unless which be adjust we'll our our we measures, items referencing certain discuss in included results noted as for financial GAAP today, our non-GAAP results. reported,

currency otherwise addition, basis, unless In our a provide we noted. year-over-year growth constant on

and provide of presentation. the strategy business release non-GAAP GAAP find within reconciliations can outlook. and will earnings slide update, back our Luca comparable take the Dirk and a You the call, you GAAP to through at will financial and results then today's measures In our

close We Q&A. with will

turning other more of the a strategy. Central we over With Dirk, update More and will call turn an investor our Eastern, will leaders and reminder May evolution to begin where Dirk, it XX over have on X that I’ll on be IR Luca that about will Before the Dirk. talk that, senior to X soon. details our website

Dirk Van de Put

levels. dollar volume call the resilience broad-based all demand biscuit joining continuing to am chocolate Thank growth around elasticity start historical have I you with an profit the pleased we Shep, that the demonstrate start high and year today. share strong Strong fueled delivered on with the cash solid growth price and for below to everyone X. for robust and categories to remaining to world, will slide and snacks I thanks growth, pricing, excellent delivery. growth

growth the Each in for and our succeeded extremely is sustainable we and well as remainder discipline by to industry. the remain Throughout invest delivering environment love. continue and inflation, input the and supply chain, through in in confident brands, pricing No these time, navigate deliver on matter especially labor distribution, to remain in continued strength snacks global the note our a actions. At support world that the quarter ongoing of to day, It cost as continue challenges external to confident We effectively our same CPG quarter, to every our and lingering well focused beyond. best our proven our dynamic mitigating remain environment the the also transportation. dedicated great we characterized diverse from teams investments disruptions consumers. of We very and continue the the capabilities enrich strategic strategy the acquisitions. shifts and XXXX cost lives to one the our that of to our how we around attractive, tasting makers brands, us next, consumers and our position deliver high-quality, brands important our the people, to bakers

to X. Turning slide

strong continuing pricing significant that solid investments increasing line and momentum actions, continuously another our virtuous cycle. top of our in and to brands year us is XXXX. are strength can position see You The strategy and for well drive sustaining our a profitability

revenue are profit we by Our off We grew delivered a due to quarter strong of and to growth robust start. this We higher volume. first pricing X.X%. quarter results show that gross X.X%

view $X as our ability of and cash to our income digits, algorithm. we single these across continue our flow. indicator free billion XX.X% a high of on results revenue increased gained have health investments our We deliver half by share operating delivered base. to We A&C Our increased long-term and healthy growth in

a XXXX, revenue consistent how averaging now we half are strong approach increasing of commercial growth We we second record. good and since on cycle track X, XXXX. rate generate growth and a the slide shifted on X.X% feel to gross this of In profit see our growth, quarterly can execution, you about new dollar investments paradigm elevated virtuous incentives. a on to always by local first focusing As

this We are confident attractive continue growth. deliver that approach to will consistently

slide We biscuit. our our chocolate also X. the strength Against not now durability only of that of but and of believe backdrop, this and categories the performance demonstrates core execution, I'm attractiveness on

our This details enable We Mexico. acquisition recently confectionery the one our double priority and of candy iconic size La and chocolate announced and acquisition in portfolio has markets number number are us our additional excited largest to to sugar will widely in Ricolino us broad second America's after on player brands Mexico, a for provide of and chocolate Vero, Latin strategic Corona Ricolino, some a include key market loved of Ricolino, Coronado. four priority Brazil. market

has addition nation DSD more than biscuits to trade XXX,XXX robust X,XXX route-to-market will which in to than of more serve routes expand In outlets enable organization's us taste chocolate. the and that rapidly infrastructure, traditional share brands, the our the

from manufacturing with strong benefit facilities capabilities. four will also We production new

but as value. dynamic both condemn cost now volatility. in coming human the supply this been inflation chain opportunities and high on not and for expect to revenue and by environment. core very Like slide strategic cost solid chain supply revenues in delivers an we $XXX driven than XX% cost and five war X% Ricolino difficult global synergies. causing operating are business is revenue. Ukraine, environment We categories with past We great from of and more transforms great over a profitability acquisition X, at net suffering, currently experiencing already adds other an CAGR with years fit snacking million which shown only companies, our to has growing the rapidly drive Its

dynamics Let's to taking look and take them. each these the we a steps of closer address at are

these challenges, face actions markets. energy, we offset inflation, To in transportation, recently especially pricing cost key continue packaging, areas announced edible we to and further First, dairy elevated oils. the wheat, input across of

the costs are for fully hedged commodity year in Additionally, hedged and near XX% about areas. key our

are and accelerate initiatives. throughput continuing We also to productivity

minutes due Second, our in key manufacturing a we supply parties, and like continue labor to the our implementing to to now are between containers. and these the retention. continuing in SKUs our and new at care spend Ukraine. warehouse challenges capacity, support ongoing numerous capacity I for in of a region. to And gap we and related in third, war and operations people, as To well continuing as to actions employee measures US, through would working are shortages improve to as few especially challenges, protect addressing volatility well our to third the manage supply offset demand through the as we trucking chain, prioritizing

and and all foremost, Ukraine been the First ones world the our family, current friends senseless people with The and violence. impacted. situation thoughts have this devastating, who with loved around and is condemn are of we those

taken including steps our assistance colleagues, protect important with financial help and have number of border to support, We strong crossing a finding housing.

are our part in continuing these Ukraine. pay to of As we employees steps,

plans. up on aid but all of on-the-ground stepping to financial support also top and XX help. commitment so with specific teams our local are focus donations the on relief people This international focused far dedicating efforts, food and have in supporting On million to donations, includes organization Ukraine, we where Additionally, we security. a our are communities to humanitarian providing

power Turkey, making diesel secured more including critical from Ukraine and have generators we distributors. with provide public transfer to XXX we and in available product helped children than to help Ukraine, instance, donations food to For facilities are working

area. Trostyanets the in began. has suffered Our down due shut Unfortunately, our damage operations in site in substantial since manufacturing the two war Ukraine to the have action been significant military

[indiscernible] site we remains provide will facilities, of when also operational potential either local facilities work employees injured is facilities. were steps with for next allows. our early to to make but It situation the Thankfully, Our in at none closed. the too these you

all In have terms food product in extensions, capital activities, and stopping commercial business we and new planned our all back investments, a as sponsorships any nonessential including company, launches advertising. line Russia, of scaled

of people's focused that in daily snacks staples shelf-stable are local production are We lives. packaged on

for I financials. details over to to colleagues. more continue also our that, on support We With hand to provide will Luca our

Luca Zaramella

you, Dirk, afternoon. good and Thank

Our first continue posting from volume increase show four business to markets than units. top that an with of growth of with more to strong delivered points revenue to flow. growth strength, from of quarter mix. strengths our across Emerging bottom XX%, coming We performance major great was X.X%, cash nearly all

nearly markets Europe strong. America mix Developed as dropped first with Brazil from growth, remains Importantly, points grew X.X% of Mexico. North XX in with strength performances demand volume the both notable and China and this quarter, for India,

As for a drove good positive, developed mix of our was emerging markets, growth. but market portion pricing that volume also,

volume at/or Mexico and Gum increased HU above and in this to high to gum continued and Milka, brands increases growth. XX. were were for than emerging the Asia both grew are mix. growth Brazil growth continue and and Tobleron, more mobility some quarter, biscuits from drive the well, to significantly China than Similarly also Both many businesses category. portfolio levels. emerging areas posting for as [ph] among strong Cadbury, Oreo, Mexico, improvement are to business. double-digit with candy X% brands Milk, candy while the developed deliver grew India, related slide digit, performance and a show larger Biscuits that Tae Gum Turning two quarter, Southeast on Chips and XX% Chocolate Ahoy!, demonstrate grew and China, with double X.X% to Brazil, [ph]. Riz in posted with more Dairy growth pre-pandemic increases. points and of strong local grew QX, those Lacta Chocolate among single-digit of significant our markets. all including our of increases. global performances. coming engine markets

approximately performance and with revenue gained in Now the out our the XX% win stock. XX the let's quarter, our points inventory approximately of market share in review situation US We held XX. high slide or of on due base during of to related share

with category continued to base chocolate gaining of or well, do share. holding revenue our XX% Our

or levels XX is held revenue category of worth headwind. biscuit the strike XX% base, in inventory in lower continued following shortages third-party by the gained QX driven our America at points While North of impact labor and share our manufacturers

in and gum. chocolate; dynamics Brazil, France improve We few to as Mexico, of the UK India, Brazil share expect the China, and gains China move year. more A half and we include QX UK, into second the Africa South areas Biscuit; notable of these of

to into our share is to we where QX, chocolate portfolio Easter key EMEA and As in we markets strong. in several especially Europe our move due timing improve expect

page Now turning XX. to

to the profitability higher due commodities. the volume For quarter, and leverage strong hedges and related pricing, of was currency to strong benefit

slide and recovery supported channels. retail in on by the XX. performance travel great Europe during and away-from-home grew a performance execution, strong regional X.X% to Easter the Turning continued quarter, convenience

across OI Central as and driven many volume Europe. Easter of we effective markets, points and were X.X% execute reinvest quarter best for X.X%, and by to the results will higher additional as that UK slightly also EMEA as volume Volume quarter QX, grew dollar growth in continues and announced control strong continued In the service driven XX%, as higher of during volume gum candy sellout strong grew X.X chocolate, of OI as the Eastern related in and than in an due our May. with the for ForEx commodity increased Our to by the Germany. much quarter for positive, growth. hedges. region. increases the North America by was digits with ever in despite double-digit levels strong more driven strength quarter as grew delivered well strong North sell-in including constraints. pricing for labor early and lower mid-single-digit We well well by become US to was showing delivered and cost with mix India well leverage, future. growth XX.X% for X.X% increase America UK, continued Biscuits the pricing. third-party pricing growth double the mid-single-digit strong biscuits favorable growth. the pricing

in in to single restrictions. region. continue for We gum, due by high outpace digits COVID gains continued the biscuits our our biscuit position China to and driven competitors the of extend challenges several quarter, share business the despite while larger both chocolate, in leadership and grew to growth continues

through across Western profit our effective Asia beverages. all with categories, posted more were OI increased Latin quarter. core increases EMEA and both Andean of double-digit XX% strong inflation. growth and OI Brazil, mix volume quarter. RGM volume-driven than categories, impact actions Southeast gains. snacking by by XX% growth, across grew candy unit sales. gum by partially growth delivered quarter, the increased all with Adjusted Latin chocolate America for for single-digit quarter, strength Mexico in driven offset dollars than pricing dollars for volume commodities business more driven These high and pricing strong this broad-based by and biscuit, America X.X% and the the the was for increases mix higher transportation and

currency. grew Moving primarily operating top EPS. EPS was gains. QX to line-driven by XX.X% driven This at constant growth

cash Turning to flow cash delivered driven flow capital improvements We and return operating cash strong free by results and our QX of on free cycle. slide €X XX. further conversion billion, in

$X.X share dividends repurchases. to billion form of and also returned We in shareholders the

yearly a make Ukraine. the me business Ukraine products this Europe. as a $XXX represents plants basis. comments broader both produce stopped Let few million respect and to in the that total, about our in war Ukraine for with all including in the began, on We country two revenues In

approximately of adjusted will of a $XXX write-offs we this be asset which our from million, costs one-time result business stoppage, results. As excluded expect and

million of well remainder related as Europe, $X.XX the we translate in for within that Ukraine of from revenue revenue yet. The goods loss supply produce we the in other EPS. lower $XXX to lost not losses countries is about our have to alternative headwinds Ukraine expected plant where For as into expect revenue finished XXXX, do

factors year. later let expectations XXXX from roughly in historical now We our Ukraine that This point on to currently XX. Now outlook slide anticipated in negative the color elasticity we expect top of line addition X% of or on some impact return our million me to plus one the will revised war more this levels $XXX provide growth.

the growth, larger cost of given number the We a tied energy, inflation. rest We our continue for for commodity and revise price is XXXX The despite coverage approaching in range impact of driver and year. double-digit packaging. line in top to across of pricing inflation the be input XX% and year cost also reflects a prior step-up inflation our in basket, announcing its QX oil to the of are X%, of we the in for including versus increases to related Ukraine the our expect markets view low now view approximately to expect war pressure the wheat,

As I an seeing of could these this and are elasticity expect additional we a what connected in in also markets actions today. to increase inflation, pricing cause number versus said, we

we accordingly. As a result, have planned

As for we we headroom. XXXX, had gave you guidance some

increased, volatile. high brands between momentum increases call EPS. also support it increases. is given mid-single But incremental feel single elasticity ongoing still the digit. these high factors in by have hit we some growth price an This versus EPS to we situation in So to might investment that, our is we media very business good be to of dynamics, opportunity range and to believe single-digit work to protect cases, given a driven in And prudent

billion view respect another With $X.XX open plus. the now for included first our also unchanged is of €X line to to was of flow, expect in we results. let's of outlook Our factors amount related this $X.XX ForEx as in impact. headwind our year questions. With free quarter continue cash to that,

Operator

from first Mizuho of We'll John take [Operator Baumgartner our Securities. question Instructions]

John Baumgartner

Thanks for the question. Good afternoon.

Dirk Van de Put

Hi.

Luca Zaramella

Hi John.

John Baumgartner

just we're state seeing Maybe, Dirk, a first volatility bit call-outs your of any terms starting and of union given if of globally, in off, you wondering can just notable the the across the geographies categories? offer

Dirk Van de Put

momentum our Yes. strong, our and moment, would I phrase Southeast about at we COVID, phrase, China the that some it's but of particularly environment, I think conflict. demand is still in one complex also If know environment is Asia. and if would fast-changing the Well, the complex in pockets geopolitical about I a There's -- all say sustained.

still And the We chain are disruption inflation. seeing is there. supply absolutely record

difficult the product perspective. our have was X.X% the that growing if and chocolate, at And At strong our time, career my then biscuits, X.X%, revenue for biggest you strong. we periods in which revenues from performed X.X%. very more grew category, by the and instance, known also demand very operational was all by in of And that same X% volume more. we volume accompanied regions an one well. by probably or in They're was All for look our X.X%. the growth, is I So quarter, grew

in investments. We continue We invest on pull to did back our not our brands.

So high very we brands. pricing supporting to are because that, all our that going are despite do to our and this good to dollar continue keep a delivering we environment we believe we are year we And need profit growth. in

continue emerging and XX% QX revenue We have was strong double growth. markets volume year, markets markets, last strong RGM emerging that driven a to If and engine -- accompanied digit double-digit be for double-digit us, look growth, by developed double-digit OI revenue to by growth very and I in also volume strong growth, growth pricing the growth. and

in we in chain, space. these of opportunity although And There Brazil. Developed as still supply strength and in are we markets but a significant have our distribution white as have markets see it still up India, North believe have we step in it improving. to China, gradually you We solid, was know, America. constraints relates US we plenty

growth, strong So pricing. in step-up we a had

we the is of is it mid-single I that products are there's We implement show And but still and all, about I our as making good volume-led inventory, very if digit but there's already so buying this our aware to I beginning is results, still it's we're share cannot us of is The another to data which pressures round very Europe confident underlying very about we And in then a progress it consumer fully on complex strongly. going do solid, say, a at and on, supply of year, lot still yet We feel the future. our very see a it, know the was a Easter. pricing. said, environment, record strong in Easter X%. May you Europe, work lot chain of would also later good, growth but consumer for had result of questions inflationary because about there. Easter summarize market

right in we're the think categories. I

right have We the strategy.

Our every brands in year. are strong. We investment them increased our

We have great people.

Our we execution is mindset. right the good have and

the situation have this work inflation, have and headwinds will got to which Ukraine We go supply near-term to still worse due through. to through the chain we

we execution focused strong you pricing, discipline. control, and idea. hope gives our that So an very remain I in-store on we what cost can

John Baumgartner

a any you. apparent Thank that bit, terms it the to elaborate the you attract great. market of know you follow-up, could in just your other That's as Yeah. on traditionally. a but acquisition, a Ricolino touched the on remarks I less synergy outsiders? that And is a business may And seen you elements of be that's to opportunities. discussion Mexico not lot in

Dirk Van de Put

high per for Well, for for our we into snacking Roughly in we bigger other consumption are very capita us. to our chocolate become the in there market us, in a And as and are interested in interested business we gum markets, largely we player. Mexico to and us also. a full emerging is snacking the is market Mexico Yes. that a our priority becoming strategic consider meals potential us, has it fit Mexico plus a business. have. player very comparing And for

biscuit some Our but use developing, business could is acceleration.

will that And probably about XX% get for their and businesses and starting already Ricolino the share combined picked This the might two which business, our that with size. in is is have to player, now market. market, market the to important And a integration. our strong very we up, the also strong can us to of will that not particularly position in And helps expect are XX% us full with snacking which and us. be the biscuits chocolate confectionery you that you very So in already same what strong for but to in combining us a presence a market, mean XX% are ambition route about from chocolate. there offers an existing

in a and cost and to significant revenue opportunity be Mexico that there's because growth America. accretive and of would Latin integration, So our which margin full for synergies,

share net the in in the in million have a a two Ricolino, them of categories are in chocolate. expect years. growth combined $X maybe the together categories, and the the number confection, because XX% And on those In The local that, expect quickly expected in Mexico, are revenue. bit and about X% categories about chocolate for be So confectionery to next we four about billion one brands, Ricolino, categories, so number we numbers five sugar iconic X%. $XXX they the to above about of their of be

will not also is in any ourselves have but as in to the probably there's Mexico. become know in You What routes can reaching in They're we market, And, then in have DSD help the trade second, presence stronger. But I modern Hispanic business. in the very interested market stores. route X,XXX route known keep have plus quadruples -- mentioned, of markets categories That a very already that locally. the the to brands. they're to strong US of high-growth mom-and-pop we're What course, XXX,XXX we they brands, a our leader where Ricolino in we mind confectionary almost triples so US. the

four so the which fast. increase there the significantly is business. getting of believe also will there excellent growing the the market. products coming you in are population the And for the opportunity is We're know, necessary in produce US the from their facilities, we manufacturing XX% growth. population as Hispanic US Hispanic help to an US, And sales that that us

gives an I you idea, So think hopefully. that

John Baumgartner

Yeah, one if that's last And great. Luca, Luca -- Dirk. for sorry just Thanks could. I

the prove range XXXX, as top Looking terms outlook for wider embedded amount line at tough. potential do modeling you. a It in in EPS. announced model. stronger we conservative takes But for downside? know forecast was the uncertainty how I Thank you've despite of really think Ukraine, and the of maybe where fair though the and puts about might guide sounds

Luca Zaramella

John. you, Thank

at despite to in that quite in that is good it both XXXX year, As confident the being think I bottom I numerous another say lines, about the and thrown of feel said fair are terms us. prepared we challenges remarks, top

expected biscuit at and the you how making are. that been I is and kicking that pricing in, It chocolate when are last And driving be very and that think just particularly mix to give has is high the years board, you originally environment think result have pricing the digits double reference, of that the vibrant fact testament all to businesses of single few and in volume now we versus additional geopolitical investments the waves commodity our digit look is the our across vast big the the quite since multiple energy undeniable frankly, number that a categories, costs. franchises really is is estimated. I mentioned inflation will strong. we additional we've And And across had over repercussions around a classes.

want away the elasticity’s As elasticity. watch for price part the out you we have realize to for is remainder make inflation, I historical the unprecedented that we of And planned that sure year. clearly,

invested also that to a want since make so And be bit wanted to I the by are realize level been. seeing as brands in last in cautious they elasticity. sure not our little our forecast And in years, that strong are point we'll having ever I as we materially have at this three time, that

that have Ukrainian impact, guidance better revenue of you slip revenue year. we net But the that points gave again, certainly original you you beginning out we ahead at the frankly, to the of So we an do our on on are two if quite realize guidance. the opportunity

some built into forecast. had On to the single-digit we we in profit our cushion side, EPS, as guided high

do EPS. growth. Ukrainian before is still way. single-digit business in instance, more aligned inflation and because losses, EPS worsening for to our of why, And that's And that than headwinds than company want this the to there on have get mentioned, being been meet related come we on opportunity accounts EPS. reach. side, down initiatives. and $X.XX why single-digit the years. what within tighter are today. we high I of versus EPS more within This that giving a of to the cost single-digit few situation case we for Obviously, the now double-digit we in that inflation accommodate the around case of and is elasticity’s ensure cost to further is to cost have in are better But we those and we And But are not doubling see streams for about doing last benign might So control productivity the range high we an high materially to the you even

hopefully, if elasticity’s within situation the single better worse are would high so reach. digit doesn't the and And be

John Baumgartner

Thanks Very Dirk. Luca. Thanks helpful.

Dirk Van de Put

Thank you John.

Operator

next question Our from Ken is JPMorgan. Goldman of

Ken Goldman

just we was is first would X% being feels to how very is guiding X% to up quite my low, accelerate, going almost you. how -- just question or your thank almost and volumes question, get seems and those strength. too well I you're quarter, if be Ukraine don't to be And your even getting I the -- under just and families does be positive if volume the was mathematically, And going they Hi, get hope And to guidance is in elements for two low up and John in pricing up the at, what year, employees back above of their do it X% low that It just positive. are just there. sense. and would I'm that's like to to X%? in as I was I is going cards X% pricing to almost that the makes hope my as doing XQ circumstances. safe given can are it just feel punitively again, he back back if what suggesting,

Luca Zaramella

it though business -- your really stoppage. we from The headwind have it sense. is; to Ukrainian mean, point the makes I A, here logic, related one point of

Russian, few as places back like of both importing. terms in that are And imagine in times, operations. might instance, scaled mentioned we for there You have restrictions, a we

wanted we volume So said, is better we have terms higher implement that, than to be what of the few pricing But obviously an policy have there fluid. planned as as are to on clearly, going done in as moment. elasticity I opportunity the negative last as pricing the we we to is well. in of elasticity’s at And multiple have we is I higher and because, seeing situation go top there rounds, If for waves, cautious be quite we get revenue.

that that's are about. are price getting than double that XX-plus some to digit, imagine say in -- might the You but are the increases we double talking not places, in more I we would number percent, digit,

And seen to and levels, be wanted to elasticity so remains at I these cautious. be

Ken Goldman

though, some and you baked and clarify, the And positive than just levels, in being Ukraine at estimate in you correct? nonetheless, year, to into all volume uncertainty talk there's Russia, higher say is and level hopefully being that too. and about That for elasticity there, is that baked today your a understand of when I back-to-normal

Luca Zaramella

Yes. Yes, it is.

Ken Goldman

Okay. one last for then one just And me. quick

we Luca, any considerations pace of hard have, obvious, mind of whether remaining the inflation? comparisons about terms top quarters, that should be there the when with whether not in may modeling As line in each think quarter, or we are easy

Luca Zaramella

Look, being the year, the you obviously had the that is the revenue some But to impact last that, thing in in to affected one which throughout only the QX, phasing besides only think higher of US, one thing that in had the pricing bear about quarters. in sequential mind US. is have the we strike you

Ken Goldman

much. Okay. Thanks so

Luca Zaramella

Ken. you Thank

Operator

next our Barclays. take of question Lazar We'll from Andrew

Andrew Lazar

was maybe or wanted to I takeaway And there I much. very been X% Organic or quarter. in X% on close little in has North bit closer so. dig consumption America. a to Thanks Great. think to the

in and dealing still on chain guess, of of you I that given and shipping So ahead share just I'm a market? you're market still with, some so consumption, trying handle losing how get better I to have guess, also that been far supply issues that. the

Dirk Van de Put

Nielsen. followed do our ventures, not North number we have are Yes. Well, which a of businesses in by Andrew, America,

we if think rest the even business. same for the coverage don't of Give or So Perfect have Go, Bar. about as They our instance, &

You will strike, of high trade that, to also and were came we our like be. in levels we subsequent imagine the that out inventory demand the them not as we high would had as

the combination you between those about. that X% give talking the and that So two of difference were X% factors the

Andrew Lazar

three how that's between, to could -- it say, out Thanks difference I Maybe currency buckets digit, high turns there single you if Luca, we at let's in mid for maybe the EPS were guess, then, single-digit high out. that. the And key if there. growth constant just break look

you think to piece be? maybe hearing $X.XX much. single if dime, chain. cost just would potentially sounded It high like turns whatever bridge below supply I out on And due to very from was Again, digit Thank then the right, Russia-Ukraine. to be I'm trying said, you you inflation another that? what to somewhere

Luca Zaramella

year $X.XX -- Ukrainian Ukraine Ukraine John, another we between came to is and additional I reply plant by as last in driven laws as and $X.XX. of the of that to out the pressure war It revenue in said the cost the cost the business see the -- another the headwind I

And is so the two, $X.XX it of EPS. between

a high digits, quite than point, we little are predicated baked have will single-digit elasticity. at then more single-digit I forecast, with as historical I have be this bit the line plus, we think of frankly, than what better high said, into elasticity’s the one lower are growth. is single Now, EPS will high elasticity’s The on in EPS, levels it if

Andrew Lazar

And buckets know the that you slide? on in I if piece, $X.XX those have supply three chain because was didn't that the included

Luca Zaramella

is all in there. Yeah, included it

Andrew Lazar

Thanks Okay. much. very

Luca Zaramella

Welcome.

Operator

We'll take of of our America. next question Spillane Bryan Bank from

Bryan Spillane

Thanks operator, and Dirk and Luca. good afternoon

Luca Zaramella

Hi Bryan.

Bryan Spillane

ones, of quick a So I hope. couple questions,

Ken follow-up a to through Goldman's maybe phasing question just the is about year. like First

you're growth slide throughout that comment year-over-year I there's XX, XXXX. think in a profit on there says expecting dollar

was behind that any be to margin more there quarter? each understand in Is of meant anything or growth trying profit guess, variability that quarter? like of, per bullet? if I Just kind terms to So there's

Luca Zaramella

much No, quarters. growth that. dollar into too throughout don't read expecting the OI we are Obviously,

cost see we as quarters throughout have evolves current I the baked said, into cost We the because have how levels. forecast, to the

commodities covered year. the remainder pretty the for are of well for much We

say, few point, plan would depending, this idea, I the the on yes, that's that's a might but there the as some said I times, moment. bumps at at in the road, So elasticity be

Bryan Spillane

some or And one wheat, like be do given is the going raw resource of and think input maybe second how just, you about we other inputs for -- to of costs there's maybe ingredients like scarcity some Okay. guess, other are I or maybe other -- then inputs. certainly potential for or Luca, the -- preparing how it inavailability materials. the looks

of factored balance your risk there that associated that just that go the is into a And been factor forecast? through any as is the Just we that with has year?

Luca Zaramella

in we to into is this some yet moment time. a have business. The facing -- say, but material that at no been factored the Clearly, are the to shortages, plan. impact they exact I have

plan in So the get us extra terms we cost will have is the we commodities need.

palm for time. issue You is us material might the issue a at one in point this oil Indonesia. about heard That not in have

situation the We closely. very are monitoring clearly

coming wheat, North is of terms the the of us. East into Middle mostly the and for Africa out Ukraine going In wheat

we the As $XXX total is last I for the call, company wheat $XXX million, said million. in the procure

to big that of for Middle material the yet, going supply. So still in in been and Ukraine, we It to be total, a hasn't wheat the African North problem out things, of the how have business. evolves we sourced crop scheme East and in be what see but is particularly of not our terms believe can

Bryan Spillane

up maybe like, on related, if that. If packaging, of of the there. any energy in around Europe, I availability Europe? just in at in Is the risk disruption follow all packaging, especially just especially some And could we're just there of given looking petrochemical

Luca Zaramella

it I supply, there, the up hope terms of at material some specific it for like And not that facing in in on -- particularly of but way. Asia, and lot places that a again, some to under here Paper have broad-based. issues yet. items, company and point. are a are issues is we pressure issues that nothing racks this but But the number We stays

Bryan Spillane

Yeah.

So do Thanks I. All Luca. Dirk. right. Thanks

Luca Zaramella

you. Thank

Dirk Van de Put

Thanks.

Operator

Our next of Chris Stifel. question is Growe from

Chris Growe

Hi. Good evening.

Dirk Van de Put

Chris. Hi

Chris Growe

I questions you, could, two had just if I please. Hi. for

that a pricing. your April. to an I up one, in pick in curious quarter. some inflation has Europe in can And I pricing where just into the place bit think a to about I'm like been -- the of you second offset Easter, a area where talked just area sense think So was that dig very you've want the more see that Is little pricing area we after into get get historically Europe? pricing, should difficult that before about broadly coming an in to first just

Dirk Van de Put

Yeah.

our talked Europe. markets all including impact. in the we've We across QX, about inflationary took pricing So higher

very clients fact, you a the the and not now. reflected we out increase that trying But That we're we right on pricing. to So robust. probably will our it's pretty to forecast, a price happening because have in in to lot likely second do that demand is be is that another prudent is there have Europe. are to for in far, the take And category going Europe

at see in is, to able cautious a could have do in effects approach the our We of and the already whatever that picture ready gap pricing XXXX of to of year expect will and Europe most we've potential reaction and we so we next the then exists able of have And away that. for will be markets be that to beginning what pricing. year inflation that taken most that be we any on do this cost from will the to be also with we

leads to was pricing a that around So, very increases saying, world. significant Luca what the

we far we're been for elasticity so has trying were quite is low. But good, -- careful planning we be second area As levels. where saying historical so very also to the

the XXXX, end beginning the the up that sorry, the to consumer be basket beginning the XXXX For -- than at at of XX%. of compared will US for I believe instance, more

we that levels. forecast the go will elasticity to back historical so And

Our categories very historically been have resilient.

our good. this we despite inflation, high So, categories pricing, are pretty that despite know the high

save. the for prioritize grocery items, they're the consumers out, continue Those instance, that floating, spending. items going eating of everything not are up, One fact the personal is is more seeing, on travel. to just It's to where we're trying this things food, that --

implement to moment. continue volumes. environment it with goes. at how So, a again, and volatile It's the and that and confidence trying the cautious, have be careful us see the also gives But pricing we're very to we will

Chris Growe

And or that or just Thank comes was in you place, remaining then is of quarter a we for now that more the through get before for a it a Did sense level inflation one go of I follow-on. up level? get the quick looking gross picking quarters, first Does for a I'm the had think pricing pick I margin. you better Does quarter? little inflation we're of Okay. trying that. function to just double-digit here? give that as the first up at the the inflation that gets at before challenging year.

Luca Zaramella

a the pricing towards US there. it saw because that up The the in One, materially clearly for reflective the pricing. mix it level level second level last we is additional part of year. instance, it there of When you is elements. by which know modest of see QX is part higher X% the of is level gross year, obviously, the for bit obvious reasons the in business, key of And means little three look, the is at in second surprise, a us QX margin impact, the that you that volume with in inflation, And X% year. revenue in, kicking of you a caught picked the inflation

provides that of in we The in in protection is leverage. good second terms fact that the is QX put terms of place in commodities element that growth and volume hedges is the ForEx. there the And level third

in be high inflation higher down will think you have part we dollars, going be QX. go about still of will you the as absolute going might volume terms it level remainder accordingly. as that the down in year-on-year, price and as is but the year, The So, to in to X% not saw the of

margin And so the play into have a that gross the over will quarter. evolution

current that enter allows So be though of goal are have XX we more that The I given ForEx necessarily see a to point realistic. going assuming think pricing want and not levels. an is take level to at basis we all commodity to that to have is that with about historical you're XXXX the of -- cost us decline aligned we the to level might pricing

Chris Growe

Okay. That’s your you very helpful. Thank time. for

Dirk Van de Put

Chris. you Thank

Operator

Jason English from Sachs. Goldman of is question next Our

Jason English

folks. me Thanks in. slotting evening Good for

Dirk Van de Put

Hi Jason.

Luca Zaramella

Hi Jason.

Jason English

Hi. I guess couple quick questions. of a

approached wave of course at believe one on the pricing going? close of Europe Have the in is territory Europe. through next Because this in Continental least you I yet? follow-up of pushing How to it to in the year. to be sort on-charter trade multiple is rounds, First,

Dirk Van de Put

give cannot I that of you feeling new, yet stands. brand so just it's where any Yeah,

important within it's to early with everybody it's an making that involved. the sure think and all the that situation trade conversations where our for partners I to and that will lead. will idea you But give too win-win it's we realize an have a negotiations necessary extraordinary of

Jason English

Got it.

you're long assume these more DSD Mexico route market color all are whether company-owned, acquiring us really current little how I that? can sound that Can the you And to confirm is? And route give or interesting. your to what And not, a you -- it Okay. maximize imagine one to route will trucks think with? reroute able how be we loads efficiently entire these but be or should long to I get the market that to can you you network you take for of to should the expect, do on

Luca Zaramella

Okay.

is So an beam The current -- between contact the the of DSD own and Ricolino. network points are system. there some the

really being enhancement point, trade I I business And on our to when to has. some So is would be side, where will have other is of that presence at little between revenue going the XXX,XXX you carve route modern which X,XXX of market, one things is we synergies, and the moms-and-pops, side, value achieving And what additional presence the at complement, with out worrisome. X% going is good a in biscuit opportunity and share feel quite say lies. our but total sales do material our a to like Mexico, our bit of create have on DSD we infrastructure this to reach about nothing Mexico this to of Ricolino feel the that the Ricolino strong cost look trade at model Mondelez. with the is

what opportunities through of are particularly US, we tremendous see pushing strong. top growing On said, in a very cohort as and And the Dirk is tremendous the are brand excited. this has we that that, so in is potential. very, very brands And

Jason English

Yeah.

compelling. I’ll it Sounds Thank you. pass on.

Dirk Van de Put

Jason. you, Thank

Operator

Lavery of Michael from comes Piper question Sandler. next Our

Michael Lavery

evening. Good you. Thank

Dirk Van de Put

Hi.

Luca Zaramella

Hi.

Michael Lavery

bit we get you elasticities if the curious we you far. breaks help dissect mind really about a seeing the the of keep if lump any as could held trading? Can shifts have of so bit little an Are split. you give how was together, us understand well you those volume down the as mix But think up don't Just Obviously, mix that and when to out? in there's maybe volumes. a sense a idea little much notable

Luca Zaramella

And very we mix way problem. the neutral. as a track been issues supply-related are for very, otherwise. to in And look an closely simple could year business have you be reasons biscuit component that Look, why company, to been in last hasn't what It year. lapping, is It the either. I total the is tremendous it the terms think hasn't bit upside of most about terms acquired also, of profitable the America in we of the last operations this that said But And still are Lazar, as that question compared our businesses of new we growth it the is one to the still that a volume that volume. below are is, one North clearly, numbers, volume A, the we of have. is we Dirk of have causing quite Andrew up, address while

accretive. side, healthily flip a and the think, mix very as you gum category as can XX%, that growing saw, is number obviously I is On be, gum very,

it that the not is at still travel the world up is picking mix nicely level it before about one albeit level retail, is The not other yet accretive, which the is it quarter-after-quarter, at is pandemic.

chain because of terms down being issues, elements each fairly up the being components, I other. key retail in these three volume North being mix, would three these So, its the offset are rest mix totality, say, America travel of gum all and neutral in world and up supply

Michael Lavery

helpful. That's great. follow-up just really And buybacks. I on can that's the Okay,

pretty have billion historical still about levels. balance relative to expecting year. But still cash deal, You you're even $X for elevated the a Ricolino with this

potentially guess You've debt, of the there just said $X in upside it good million debt and Is number be QX, of that already billion over year? you'll portion with of that buybacks a course the finance I to deal cash. $XXX or with could

Luca Zaramella

that Day. have The it bit $X to buybacks. the of -- I tuned. be fund Investor this this at a more billion able we point, what around feel our Look, takes let's to little stay color at I'll provide

Michael Lavery

so Thanks great. Okay, much.

Luca Zaramella

Thank you.

Operator

Our of Howard final from Bernstein. Alexia comes question

Alexia Howard

Good evening everyone.

Luca Zaramella

Alexia. Hey

Dirk Van de Put

Alexia. Hi

Alexia Howard

couple a I questions. got of

off the or more markets escalate income in the next the in your have sales at food. of in the that becomes respond get is face discretionary higher year emerging you on biggest moment do around I quick snack pushbacks people choke of low-income the people's of then packaged terms Firstly, of as And of the a I confidence of a growth dynamic that the that markets, the items food prices and cost over that to emerging lot food sustained concerned a follow-up. like countries, in so? of these How basic could that proportion world,

Dirk Van de Put

Yes.

that see emerging was I the inflation, seeing being what emerging see saying the of in consumer think the that spending we into and are also course, we basket see reduction discretionary buying. what in eating and they is I don't making with we're confronted they're this more their that markets, into a pressure moment, is shift at out, travel as markets are of inflationary as on. so in there And the but that before, we in where food at moment, developed

I anymore it diet. the salt into discretionary in that with Snacking big part a going of considered would say that, discretionary thing as instance, because they The see a consumers. they an in it's so happening China, snacking second not modern people And as their of lockdowns, we the what of for are increase is, would do. biscuits is is argue, part I staple

three, our very like carefully I very assume we a of days. eat also inflations in work would They that they is consumers year-after-year these different developed. say and have snacking There plan or And India see. part are the And are whole particularly Brazil, how that in places approach snacks of are whole I just so – absorbing discretionary. the wouldn't are that parts RGM then

price as the you for so direct assume the be as consumer. would increase not And might

the was think volume fact, saying, So effect We our to increases. increase has price I And see because very at emerging of those stage, XX%. performance the see been no as continue markets. I you three elements, this in strong we in whatsoever of –

but obviously, so say good. you So so never far never, can

Alexia Howard

might just something that should else expecting? that to then very preview you I there mentioned next very anything any buybacks, for Great. Investor month. forward we share month. you've much. And Day about Thank you finally, around the comments but you And much thank the just question. quick is there seeing the be next look know, be I

Shep Dunlap

A this this get mean, what few little terms then Alexia, I Sure. Shep. deep I more we're the think that. more bit just of of and dive in evolutionary in thinking look, especially in about things, you're strategy how going to is hear, with respect a allocation to to is going chocolate. general certainly hit and about you're biscuit terms And capital a going to

around organization well, just I on what would other As the efforts folks doing sales terms from and team supply some of expect marketing, the we're to our in with chain. hear

going look we at give accelerate bases. some But of So as just points you hopefully, in are to and we'll give terms idea, our cover all where to an to leverage forward proof off. heads you

Alexia Howard

weeks much. Great. Thank you few See a in you very time.

Dirk Van de Put

thank looking of you you for Thanks during everybody. on May, of then. Well, you, Obviously, XXth see presence all here. Day your to and our see Investor forward

Luca Zaramella

Thank everyone. you,

Operator

QX Mondelez Corporation XXXX does This today's Call. Earnings conclude

great You day. have may now disconnect, and everyone, a

Mondelez International (MDLZ) 26 Apr 222022 Q1 Earnings call transcript