Skip to content
    MDLZ
    Earnings call· Mar 2026(Q1 FY26)

    Mondelez International Q1 FY26 earnings call MDLZ

    Apr 28, 2026 Source

    Executive summary

    Mondelez Q1 FY26 – Strong Emerging Markets & Reaffirmed Guidance

    Mondelez delivered a strong Q1 FY26, driven by robust performance in emerging markets and improving trends in developed markets, particularly Europe. Despite exceeding expectations, the company reaffirmed its full-year EPS guidance, citing new headwinds from the Middle East crisis and a strategic decision to reinvest potential upside back into the business to fuel future growth, especially towards a strong FY27 EPS. The U.S. consumer remains cautious, but North America expects sequential improvement in H2.

    Highlights

    5

    • Emerging markets grew 6.3% in Q1, with volume mix up 0.5% (almost 1% excluding Argentina).

    • India achieved strong double-digit growth in Q1 in chocolate and biscuits, including a successful Biscoff launch.

    • Developed markets showed improving performance, with European chocolate seeing share improvements and U.S. biscuit experiencing a positive inflection in March.

    • Supply chain productivity delivered year-on-year benefits, contributing to gross margin upside despite inventory phasing headwinds.

    • North American business is expected to see sequential improvement and volume/revenue inflection in H2, driven by share gains in savory (Ritz), strong candy performance (Sour Patch Kids), and growth in ventures (Tate's, Clif, Perfect Bar).

    Concerns

    3

    • Full-year EPS guidance was reaffirmed despite a strong Q1, due to new extra costs stemming from the Middle East crisis impacting profitability.

    • U.S. consumer confidence remains low and is expected to further deteriorate, leading to continued affordability concerns and soft snacking categories.

    • Oreo's limited-time offer in Q1 did not perform as well as last year's, requiring strong plans for improvement.

    Guidance & targets

    2
    CategoryTargetConfidence
    Full-year EPS
    in line with prior guidance (reaffirmed)
    high materiality
    High
    EPS growth
    strong growth
    high materiality
    High

    Segment performance

    9
    SegmentRevenueYoYQoQMargin
    Emerging Markets
    Strong performance, broad-based across categories and geographies. China grew mid-single digit, India double-digit, Brazil high single-digit.
    Volume mix growth: 0.5%Volume mix growth (ex-Argentina): almost 1%
    		—6.3%——
    North America
    Driven by momentum in growth channels. Gained share in crackers (Ritz), candy (Sour Patch Kids), and ventures (Perfect Bar, Hu, Tate's, Clif). Oreo had a less successful limited-time offer. Expected sequential improvement in H2.
    Biscuit value growth (total U.S. market): 0.3%Biscuit value growth (Walmart, value, club channels): over 4%
    		—slightly positive——
    Europe
    Good start to the year, retailer negotiations complete and in line with planning. Strong Easter season and Biscoff partnership performance.
    Chocolate share trends: improvingVolume trends: improving sequentially
    		————
    Australia and New Zealand
    Driven by strong Easter and successful Biscoff launch.
    Share gains: very strong
    		—very strong growth——
    China
    Strong Chinese New Year, Evirth acquisition performing well.
    Evirth (cakes and pastries) growth: high single-digit
    		—mid-single digit—5% profit growth
    India
    Strong Q1 in chocolate and biscuits, successful Biscoff launch. Benefited from GST change.
    		—strong double-digit growth——
    Brazil
    Strong execution across biscuits, chocolate, gum, and candy.
    		—high single digit——
    Mexico
    Good performance in gum, biscuits, chocolate, and meals, but softness in candy and powdered beverages.
    		—flat——
    Canada
    Hopeful for continued growth.
    		—terrific Q1——

    Operational metrics

    6
    Inventory phasing headwind
    $350M
    Q1 FY26

    Confirmed as accurate for the quarter.

    Industry average cocoa coverage
    10 monthshighest we have seen in a while
    current

    Due to industry going longer on coverage.

    Cocoa price level
    $2,500
    current

    Believed to be a fair representation of supply and demand.

    North America biscuit network state-of-the-art
    60%
    current

    The overwhelming majority of the network is in good shape.

    DSD distribution centers
    4-5
    current

    Relies upon these centers for the DSD network.

    DSD branches
    55
    current

    Allow reaching points of sale 2-3 times a week.

    Industry KPIs

    13
    MetricValueDetails
    Gross margin—
    Brand platform growthdouble digit%
    Organic net revenue growth6.3%%
    Cocoa commodity cost coverage10 monthsmonths
    Distribution network footprint55count
    Emerging market revenue growth6.3%%
    Inventory phasing cost effects$350MUSD
    Retailer trade negotiation statusgenerally complete
    Manufacturing network modernization60%%
    Volume mix vs pricing decomposition0.5%%
    Adjusted EPS operating income guidancein line with what we said the last time
    Elasticity consumer response commentaryquite anxious
    Category growth benchmark channel shift dataover 4%%

    Product announcements

    11
    ProductTypeDetails
    Biscoff biscuitslaunch
    Milka Croissantlaunch
    7Daysexpansion
    Oreo cakeslaunch
    Cadbury & Morelaunch
    Hu (vegan chocolate brand)launch
    Ritz Drizzledlaunch
    Builders bar (low sugar)launch
    Perfect Bar (20 grams protein)launch
    Oreo (gluten-free)launch
    Oreo (zero added sugar)launch

    Deals & partnerships

    2
    Biscoff (Lotus Bakeries)partnershipcoming years

    Collaboration involves launching Biscoff biscuits in emerging markets and incorporating Biscoff cream/crumbs into chocolate ranges.

    Evirthacquisition

    Acquisition in cakes and pastries in China, contributing to growth and increased distribution.

    Capital programs

    1
    North America Biscuit Supply Chain Modernizationunderway

    Benefit: improve productivity in underperforming plants; bring co-manufactured products in-house; invest in packaging capabilities for different pack sizes; automate DSD distribution centers and branches for faster fulfillment and cost reduction

    While 60% of the network is state-of-the-art, some plants have high waste and low productivity. The program aims to simplify lines, play to plant strengths, and increase flexibility.

    Risks & headwinds

    4
    Middle East crisisremainder of FY26

    extra cost

    Mitigation: team is managing that situation quite well, finding alternative routes to produce our brands and to deliver our brands

    Oil cost impactremainder of FY26

    little bit of an impact on the profitability

    Mitigation: covered for the year (but some regulated markets do not allow protection)

    U.S. consumer confidence deteriorationongoing

    quite low

    Mitigation: Increasing brand reinvestments, sharpening PPA (price points), focusing on growth channels and innovations.

    Fragile consumer confidence in Europeongoing

    stable, but it's fragile

    Mitigation: Monitoring energy prices and potential inflation effects from Middle East conflict.

    Q&A highlights

    7

    Seeking more detail on key drivers and climate in emerging markets and improvements in developed markets, particularly Europe chocolate and U.S. biscuit.

    Dirk detailed strong emerging markets growth (6.3% in Q1, 0.5% volume mix up) driven by India, China, Brazil, and successful launches like Biscoff. Developed markets showed improving performance, with Europe's chocolate business off to a good start post-Easter and U.S. North America seeing slightly positive net revenue growth in Q1, with plans for gradual improvement.

    “We are pleased with our improving performance in the developed markets. It's in line, maybe even slightly better than our expectations.”

    asked by Andrew Lazar · answered by Dirk Van de Put

    2 min read6 chapters

    Detailed Narrative

    01

    Developed Markets Performance

    Europe showed stable consumer confidence and strong snacking value growth, with successful retailer negotiations and a robust Easter season. Chocolate in Australia and New Zealand also saw very strong growth, boosted by Easter and the Biscoff launch. The U.S. market, however, faces low consumer confidence and affordability concerns, with biscuit value being flattish, though growth is seen in value club channels and premium segments.

    02

    Emerging Markets Strength

    Emerging markets, representing 40% of the business, delivered 6.3% growth in Q1, with volume mix up 0.5% (nearly 1% excluding Argentina). India achieved strong double-digit growth in chocolate and biscuits, driven by a successful Biscoff launch and GST changes. China saw mid-single-digit growth, and Brazil reported high single-digit growth across categories.

    03

    Innovation Strategy

    The company is focusing on fewer, bigger bets in innovation, including well-being acceleration (protein/fiber, gluten-free, zero added sugar), expansion in cakes and pastries (Milka Croissant, 7Days in Brazil, Oreo cakes), premium indulgent chocolate (Toblerone, Cadbury & More, Hu), and the Biscoff partnership. These initiatives aim to meet evolving consumer demands and drive growth.

    04

    Cocoa Market Dynamics

    While cocoa prices saw a recent increase from their lowest levels, this was primarily due to the industry extending coverage. Fundamentally, the market is expected to remain in surplus, with current prices around $2,500 representing a fair value. The mid-crop was positive, and next year's crop outlook is also encouraging, suggesting potential for lower levels ahead.

    05

    North American Business Improvement

    Despite a soft overall U.S. consumer environment, the North American business anticipates sequential improvement in volume and revenue in the second half of the year. This is driven by strong share gains in savory (Ritz), double-digit growth in candy (Sour Patch Kids), and significant contributions from ventures like Tate's and Clif bars, along with strategic investments in brand and pricing.

    06

    Supply Chain Modernization

    The company is modernizing its North American biscuit supply chain, focusing on improving productivity in underperforming plants, bringing co-manufactured products in-house, and investing in packaging capabilities for different pack sizes (e.g., club formats, multipacks). Automation and AI fulfillment centers are also being implemented in the DSD network to enhance efficiency and reduce costs.

    AI-generated summary of the company’s earnings call. Not investment advice.