Inside Mondelēz’s results
- Mondelēz sees strong revenue growth for Q2
- Price increases have been a key factor in driving growth
- Consumers have continued to buy chocolate products despite pricing
- Europe saw strong growth, while North America declined slightly
Mondelēz International has released its results for the second quarter of 2025.
The picture is, by and large, a positive one. Net revenues are up significantly, at 7.7% compared to the previous year, in contrast to the nearly flat 0.2% in Q1. Furthermore, organic net revenues are also up substantially since the beginning of the year.
Growth is still being driven by pricing, which the company feels it has executed successfully. Volume and mix, however, are still declining, albeit not to the same extent as in Q1.
Other drivers of growth, according to Mondelēz, include its acquisition of Chinese cakes and pastries company Evirth.
Also read → Mondelēz International Q1 results
Adjusted earnings per share (EPS) continues to decline, falling by 14.5% on a constant currency basis (compared to Q1’s 18.3% decline), driven by high interest and operating declines.
The full-year earnings report for 2024 predicted adjusted EPS to decline by 10% in 2025, due to cocoa price inflation.
Mondelēz International results by the numbers
- Net revenue grew by 7.7% compared with the previous year
- Organic net revenue grew by 5.6%
- Volume/mix declined by 1.5%
- Adjusted EPS was at $0.73 (€0.63), a decline of 14.5% on a constant currency basis
- Europe saw the biggest growth, with 18.7% net revenue growth and 12.5% organic net revenue growth compared with the previous year
- Decline continued in the Americas, with net revenues declining by 3.1% in Latin America and 3.5% in North America
How have Mondelēz price increases impacted growth?
Due in part to the increase in the price of cocoa seen since last year, Mondelēz has increased prices on a range of products.
Nestlé‘s recent Q2 results saw a slight sales dip, potentially due to its own price increases of cocoa and coffee. This left many asking whether there was a limit to what consumers, previously tolerant to price increases, would take.
Indeed, price increases have been implemented across the board by Mondelēz, and often strategically.
In North America, for example, rather than targeting products specifically affected by cocoa price hikes, they have put in place more incremental price increases across the board.
The results are mixed, but largely positive. While Mondelēz hasn’t reported a direct sales figure, consumers in Europe continue to buy products, including chocolate, in the face of price increases, according to the company’s CEO Dirk Van de Put.
In Europe, he says, “the consumer is more confident,” though “not exactly bullish”.
In particular, Easter was a success in Europe, with volumes up despite price increases. Since then, heatwaves on the continent have caused chocolate sales to decline.
Even in Europe, volumes have declined, although only by 1.3% compared to greater declines in other geographies.
Globally, according to Van de Put, consumers are sticking with the category. Nevertheless, they are consuming smaller volumes than previously.
He predicts that prices have gone up in the chocolate category between 30% and 50% in the past two years.
Is GLP-1 affecting volumes?
While volumes are declining across the board, the decline is most significant in North America, where GLP-1 weight loss drugs have seen the greatest penetration. Could these drugs be contributing to a decline in volumes?
Van de Put does not think so. He says just 4% of the US population are currently using the drugs, and at that for only nine months.
Decline in the US is driven instead by economic factors, such as consumer uncertainty due to tariffs and cost-of-living pressures, leading to greater focus on essentials.
CFO Luca Zaramella predicts that in Q4, the US will rebound from current declines.
