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Mondelez International reports Q2 2026 results
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Wednesday, 05 August, 2026, 16 : 00 PM [IST]
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Chicago, USA
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Mondelez International, Inc., reported its second quarter 2026 results. Dirk Van de Put, chair and chief executive officer, said, “Our second quarter results were marked by robust top-line expansion, coupled with volume growth and share improvement, along with improved profitability. We delivered continued strength across our Emerging Markets, as well as strong growth and elevated execution in our North America business. In Europe, share dynamics are showing early positive trends, and we believe the business is well-positioned to build on that progress. We are encouraged by the momentum in our business, and we remain focused on executional excellence coupled with reinvesting behind our brands to enable sustained performance for years to come.”
Net revenues increased 4.1 percent driven by underlying Organic Net Revenue growth of 2.2 percent and favourable currency-related items, partially offset by lapping prior year net revenue from a divestiture. Organic Net Revenue growth was driven by higher net pricing and favourable volume/mix.
Gross profit increased $1,049 million, and gross profit margin increased 990 basis points to 42.6 percent primarily driven by a favourable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives and by an increase in Adjusted Gross Profit margin, partially offset by incremental costs due to geopolitical conflicts, higher costs incurred for the ERP System Implementation program and an unfavourable year-over-year change in acquisition-related items. Adjusted Gross Profit increased $92 million at constant currency and Adjusted Gross Profit margin increased 20 basis points to 34.0 percent driven primarily by higher net pricing and lower manufacturing costs driven by productivity, partially offset by higher raw material costs.
Operating income increased $774 million, and operating income margin was 20.8 percent, up 780 basis points due primarily to a favourable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, partially offset by lower Adjusted Operating Income margin, an unfavourable year-over-year change in acquisition-related items, higher costs incurred for the ERP System Implementation program, higher restructuring charges and incremental costs due to geopolitical conflicts. Adjusted Operating Income decreased $78 million at constant currency and Adjusted Operating Income margin decreased 120 basis points to 13.1 percent, driven primarily by higher raw material costs, higher other selling, general and administrative expenses and higher advertising and consumer promotion costs, partially offset by higher net pricing and lower manufacturing costs driven by productivity.
Diluted EPS was $1.20, up 144.9 percent, primarily driven by a favourable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, lower pension participation charges and initial impacts from enacted tax law changes. These favourable items were partially offset by a decrease in Adjusted EPS1, higher acquisition-related items, higher costs incurred for the ERP System Implementation program and incremental costs due to geopolitical conflicts.
Adjusted EPS was $0.73, down 2.7 percent on a constant currency basis. The decrease in Adjusted EPS was driven by operating declines and higher interest and other expense, partially offset by lower income tax and favourable currency-related items.
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