MDLZ - Embedded Expectations Analysis - 2019 04 10
Mondelez International, Inc. (MDLZ:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 27.3x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about EPS and segment growth, emerging markets, brand and portfolio investments, and the impacts of Brexit.Specifically, management may lack confidence in their ability to sustain EPS, chocolate business, and snacking segment growth. Moreover, they may be exaggerating their momentum and potential to be a snack leader in emerging markets, particularly the West Andes. Also, they may be concerned about their brand and portfolio investments, as well as the potential of their new strategies. Finally, they may be concerned about logistics costs, Brazilian chocolate price pressures, and the short and medium-term impacts of Brexit.
Mondelez International sells food and beverage products. The company makes and sells primarily snacks, including biscuits (cookies, crackers and salted snacks), chocolate, gum and candy, as well as various cheese and grocery and powdered beverage products. The company's portfolio includes snack brands such as Cadbury, Milka and Toblerone chocolate; Oreo, belVita and LU biscuits; Halls candy; Trident gum and Tang powdered beverages. The company's operations and management structure are organized into four operating segments: Latin America; Asia, Middle East and Africa; Europe; and North America. The company sells its products to supermarket chains, wholesalers, supercenters, value stores and other retail food outlets.
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