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Get filing alertsMondelez Q1 revenue up 8.2% but adjusted EPS falls 14.9% on margin compression
Filed April 28, 2026 · Period ending April 28, 2026 · ~1 min read
Key Changes
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Adjusted EPS declined 14.9% on constant currency to $0.67 despite 8.2% revenue growth, as input cost inflation and unfavorable volume/mix overwhelmed pricing gains and productivity improvements.
Exhibit 99.1 view on EDGAR → -
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Operating margin contracted 310 basis points to 11.7% and gross margin fell 270 basis points to 30.7%, driven by input costs, negative volume/mix, and higher advertising and SG&A spending.
Exhibit 99.1 view on EDGAR → -
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Emerging markets grew 6.3% organically with positive volume/mix, while developed markets managed only 0.8% growth with volume/mix down 1.2 percentage points; Europe declined 0.6% organically.
Exhibit 99.1 view on EDGAR → -
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Free cash flow fell $660 million year-over-year to $155 million as operating cash flow dropped from $1.09 billion to $467 million, though the company reaffirmed its $3 billion full-year target.
Exhibit 99.1 view on EDGAR → -
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Management reaffirmed 2026 guidance of flat-to-2% organic revenue growth and flat-to-5% adjusted EPS growth on constant currency, noting heightened volatility and excluding potential USMCA tariff impacts.
Exhibit 99.1 view on EDGAR →
Summary
Mondelez reported a challenging first quarter that highlights the cost pressures facing packaged food companies. While headline revenue rose 8.2% to $10.08 billion, the gain came largely from pricing and currency translation rather than volume growth.
Adjusted earnings fell 14.9% on a constant currency basis as input cost inflation, negative volume/mix, and increased spending on advertising and overhead overwhelmed the company's pricing actions and manufacturing productivity gains. Operating margins contracted by over 300 basis points.
The geographic split reveals a stark divergence: emerging markets delivered 6.3% organic growth with positive volume trends, while developed markets managed only 0.8% growth as consumers pulled back (volume/mix down 1.2 percentage points). Europe actually declined organically. Free cash flow fell sharply to $155 million from $815 million a year earlier, though management reaffirmed its full-year targets. The company maintained its 2026 guidance but flagged heightened uncertainty from geopolitical, trade, and commodity volatility, explicitly noting the outlook excludes potential USMCA tariff changes—a material caveat given the current trade environment.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net Revenues +8.2%, Organic Net Revenues ... +3.0%, Volume/Mix -0.5%
Diluted EPS increased 41.9% to $0.44
Adjusted EPS ... was $0.67 down -14.9% on a constant currency basis
Mondelēz reported first quarter 2026 net revenues of $10.08 billion, up 8.2% year-over-year, driven by favorable currency impacts and 3.0% organic growth (higher pricing offset by unfavorable volume/mix). Reported diluted EPS rose 41.9% to $0.44, primarily due to favorable mark-to-market impacts from derivatives. However, adjusted EPS of $0.67 declined 14.9% on a constant currency basis, driven by higher input costs, unfavorable volume/mix, increased advertising spend, and higher SG&A expenses, partially offset by pricing gains and manufacturing productivity.
Added in current filing · view on EDGAR →
Latin America $1,348 12.1 %5.1 %(3.0) pp8.1 pp
Asia, Middle East & Africa 2,304 14.3 11.3 5.8 5.5
Europe 3,871 9.0 (0.6) (3.2) 2.6
North America 2,557 0.5 0.5 (0.4) 0.9 ... Emerging Markets $4,149 11.4 %6.3 %0.5 pp5.8 pp
Developed Markets $5,931 6.1 %0.8 %(1.2) pp2.0 pp
Emerging markets drove growth with 6.3% organic revenue growth (positive volume/mix and strong pricing), led by AMEA at 11.3% organic growth and Latin America at 5.1%. In contrast, developed markets posted only 0.8% organic growth with negative volume/mix of -1.2 percentage points. Europe declined -0.6% organically with -3.2 percentage points volume/mix, while North America grew just 0.5% organically. The divergence highlights ongoing consumer weakness in developed markets versus resilience in emerging markets.
Added in current filing · view on EDGAR → · paraphrased
Cash provided by operating activities was $0.5 billion
Free Cash Flow was $0.2 billion
Return of capital to shareholders was $0.6 billion
Net Cash Provided by Operating Activities (GAAP) $467 $1,092 $(625)
Capital Expenditures(312) (277) (35)
Free Cash Flow (Non-GAAP) $155 $815 $(660)
Dividends paid(644) (623)
Operating cash flow declined sharply to $467 million from $1.09 billion in Q1 2025, a $625 million decrease. Free cash flow fell to $155 million from $815 million, down $660 million year-over-year. Despite the weaker cash generation, Mondelēz returned $0.6 billion to shareholders, including $644 million in dividends. The company reaffirmed its full-year 2026 free cash flow target of approximately $3 billion.
Added in current filing · view on EDGAR →
For 2026, the company reaffirms Organic Net Revenue growth in the range of flat to 2 percent and Adjusted EPS growth in the range of flat to 5 percent on a constant currency basis. The company also expects 2026 Free Cash Flow of approximately $3 billion. The company currently estimates currency translation would increase 2026 net revenue growth by approximately 2.0 percent ... and increase Adjusted EPS by $0.06 ... .
Outlook is provided in the context of greater than usual volatility, including geopolitical, trade and regulatory uncertainty and commodity prices. This outlook does not reflect any potential tariff changes to United States-Mexico-Canada Agreement (USMCA) compliant trade.
Mondelēz reaffirmed its full-year 2026 guidance: organic revenue growth of flat to 2%, adjusted EPS growth of flat to 5% on a constant currency basis, and free cash flow of approximately $3 billion. Currency is expected to provide a 2.0 percentage point tailwind to revenue and $0.06 to adjusted EPS. The company noted heightened volatility from geopolitical, trade, regulatory, and commodity uncertainties, and explicitly stated the outlook excludes potential USMCA tariff changes.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 23, 2026 · How we verify