Mondelez’s third quarter results were met with a negative market reaction, largely due to persistent volume declines and margin pressure despite meeting Wall Street’s revenue expectations. Management pointed to declining sales volumes, especially in North America and Europe, as a key challenge, with CEO Dirk Van de Put highlighting factors such as intensified consumer price sensitivity and a shift toward value channels. The company also faced higher input costs, particularly for cocoa, and competitive pricing dynamics in Europe, which contributed to a notable decrease in operating margin.
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Mondelez (MDLZ) Q3 CY2025 Highlights:
- Revenue: $9.74 billion vs analyst estimates of $9.71 billion (5.9% year-on-year growth, in line)
- EPS (GAAP): $0.57 vs analyst expectations of $0.70 (18.6% miss)
- Adjusted EBITDA: $1.51 billion vs analyst estimates of $1.62 billion (15.5% margin, 6.8% miss)
- Operating Margin: 7.6%, down from 12.5% in the same quarter last year
- Organic Revenue rose 3.4% year on year vs analyst estimates of 3.7% growth (31.4 basis point miss)
- Sales Volumes fell 4.6% year on year (0.3% in the same quarter last year)
- Market Capitalization: $73.1 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Mondelez’s Q3 Earnings Call
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Andrew Lazar (Barclays) pressed CEO Dirk Van de Put on European price elasticity and competitive pricing, to which Van de Put explained ongoing adjustments to price points and pack sizes to address higher-than-expected elasticity and regain market share.
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Peter Galbo (Bank of America) asked about the path to growth in North America. CEO Van de Put stated that expanding presence in value, club, and e-commerce channels, alongside targeted investments in multipacks and premium brands, should support a volume rebound.
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David Palmer (Evercore ISI) queried the outlook for emerging markets and elasticity. Van de Put responded that, excluding Argentina and downsizing in India, volume trends are stable, with Brazil and Mexico showing solid growth, though China remains pressured by low consumer confidence.
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Megan Clapp (Morgan Stanley) asked about the new North America supply chain program. CFO Luca Zaramella described planned automation and logistics consolidation as a means to lower costs and improve service, with most benefits expected post-2027.
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Christopher Carey (Wells Fargo Securities) questioned North America pricing strategy. Van de Put clarified that while protecting the profit pool is important, value-oriented product development and selective price adjustments remain central to the company’s approach.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the effectiveness of pricing and pack size adjustments in recovering lost volumes in Europe and North America, (2) the pace of growth in premium and better-for-you products such as protein bars and gluten-free snacks, and (3) the early impact of North America supply chain automation initiatives. The evolution of cocoa prices and consumer response to revised promotional strategies will also be critical signposts for progress.
Mondelez currently trades at $56.79, down from $60.24 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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