MDLZ - Embedded Expectations Analysis - 2021 02 11
Mondelez International, Inc. (MDLZ:USA) currently trades near corporate averages relative to Uniform earnings, with a 22.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is excited about their growth in Australia, New Zealand, and Japan, and confident about their SKU rationalization and chocolate businessSpecifically, management generated an excitement marker when saying they generated low single-digit growth in Australia, New Zealand, and Japan. Moreover, management is confident their brands are forging stronger connections with their consumers and they are continuing to make progress on their environment, social, and governance (ESG) agenda. In addition, they are confident their SKU rationalization program is part of a broader simplification program that will drive growth in their top line and bottom line, as well as cash flow. Management is also confident their trusted global and local brands are driving meaningful share gains, that their chocolate business gained 85% of their revenue base, and that their chocolate segment improved largely due to emerging market recovery
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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