Mondelez (MDLZ)- We See Why It Didn’t Raise Guidance
Much of the Q1 beat disappears after closer scrutiny
MDLZ’s adjusted EPS for Q1’25 beat expectations by 8 cents. However, the company kept guidance for 2025 the same from its 4Q outlook (organic revenue growth of 5%, adjusted EPS down 10%, and free cash flow of $3b+). While the market applauded the results and rewarded the company with a 5% increase in the share price, let’s not forget that EPS declined y/y by 21 cents and investors were cheering that it wasn’t down 29 cents.
In addition, a closer look at the quarter reveals several unsustainable benefits we believe were responsible for the better-than-expected results. Let’s take a closer look behind the numbers…