Mondelez International has raised its full-year earnings outlook after reporting a third consecutive quarter of margin expansion on an adjusted basis.
The company said today (5 November) it now expects full-year adjusted earnings per share to total US$1.82-1.87. The improved outlook came on the back of a 140 basis point expansion in adjusted operating income, which increased to 13.6%, Mondelez said.
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Chairman and CEO Irene Rosenfeld said: “By successfully reducing costs in the near term while investing for the long term, we’ve driven adjusted operating income margin expansion of at least 100 basis points and double-digit adjusted EPS growth on a constant-currency basis for three consecutive quarters, while delivering solid organic revenue growth. As a result, we’re raising our full-year guidance for both adjusted operating income margin and EPS and maintaining our organic revenue outlook for 2014.”
While Mondelez was bullish on its performance, certain one-off items weighed on the group’s reported numbers.
Operating income was US$853m, down 32.4% year on year. The drop was attributed to a negative 27.3% impact from cycling the prior-year reversal of an indemnity accrual related to the 2010 acquisition of Cadbury. Mondelez also pointed to a 17.5% impact from restructuring costs. EPS totaled $0.53 in the quarter, down three cents.
Net revenues totalled $8.3bn in the three months, a drop of 1.6%, with Europe representing a drag for the company.
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By GlobalDataShares in Mondelez were up 5.71% at 10:59 ET, rising to $37.04.
