Mondelez (NASDAQ: MDLZ) reported Q4 EPS of $0.63, in-line with the analyst estimate of $0.63. Revenue for the quarter came in at $6.77 billion versus the consensus estimate of $6.77 billion.

Fourth Quarter Commentary

• Net revenues declined 2.8 percent, driven by the impact of currency. Organic Net Revenue increased 2.5 percent driven by continued strength in emerging markets with a good balance of volume/mix and pricing.
• Gross profit declined $104 million and margin decreased 50 basis points to 37.6 percent, driven primarily by higher restructuring costs. Adjusted Gross Profit increased $147 million at constant currency and margin increased 90 basis points to 40.0 percent, driven by higher pricing and productivity savings partially offset by higher raw material costs.
• Operating income grew $40 million and margin increased 90 basis points to 12.8 percent, primarily due to the lapping of prior-year malware-related expenses and the benefit of an indirect tax matter. Adjusted Operating Income increased $79 million at constant currency and margin increased 50 basis points to 16.2 percent due to pricing and productivity savings partially offset by higher raw material costs and increased selling, general and administrative expenses.
• Diluted EPS was $0.56, up 22 percent driven primarily by Adjusted EPS growth.
• Adjusted EPS was $0.63, up 21 percent on a constant-currency basis, driven primarily by increased equity income and operating gains.
• Capital Return: The company repurchased approximately $400 million of its common stock and paid approximately $400 million in cash dividends.

2019 Outlook

Mondelēz International provides guidance on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including the impact of foreign exchange. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details.

The company continues to expect Organic Net Revenue growth to be between 2 and 3 percent. The company maintains its outlook for Adjusted EPS growth of 3 to 5 percent on a constant-currency basis. The company estimates currency translation would decrease net revenue growth by approximately 3 percent3 with a negative $0.07 impact to Adjusted EPS3. In addition, the company continues to expect Free Cash Flow of approximately $2.8 billion.

For earnings history and earnings-related data on Mondelez (MDLZ) click here.