Mondelez International released its first-quarter 2020 results on April 28, 2020.
Reported net revenue is $6,707 which shows a rise of 2.6 % driven by organic net revenue growth of 6.4%. As a result of COVID-19, Growth rates accelerated in the developed markets and slowed in emerging markets versus Q4 2019. Volume/mix was the largest driver of growth, while pricing contributed to growth at approximately the same level as the prior quarter.
Gross profit decreased $142 million and margin declined 320 basis points to 36.5 percent, due to mark-to-market losses from derivatives. Higher raw material costs in the part due to unfavorable currency movements and disruption caused by COVID-19 lead to this result.
Diluted EPS was $0.52, which is down by 17.5% due to unrealized losses in mark-to-market impact from currency and commodities derivatives; Adjusted EPS1 was $0.69, up 10.8% on a constant-currency basis.
Cash flow by the operating activities was $284 million and the free cash flow was $70 million.
“We had a strong first quarter, with record market share gains, and executed very well in challenging circumstances, thanks to the dedication and commitment of our colleagues, especially those on the front line, who are working tirelessly to provide food to consumers around the world,” said Dirk Van de Put, Chairman and Chief Executive Officer.
“In the last month of the quarter, we saw a significant increase in consumer demand for our snacks in developed markets, particularly in North America, which more than offset a more challenging environment in several emerging markets.” Dirk van de Put further added.
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