MDLZ

It has been about a month since the last earnings report for Mondelez (MDLZ). Shares have lost about 3.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Mondelez due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Mondelez International, Inc. before we dive into how investors and analysts have reacted as of late. Mondelez International posted second-quarter 2026 results. Adjusted earnings were 73 cents per share, which decreased 2.7% on a constant-currency (cc) basis. The decline was caused by weaker operating performance and higher interest and other expenses, partially offset by lower income taxes and favorable currency movements. The metric beat the Zacks Consensus Estimate of 67 cents per share. Net revenues rose 4.1% year over year to $9,355 million, outpacing the Zacks Consensus Estimate of $9,227 million. This growth was driven by 2.2% organic net revenue growth and favorable currency movements, partly offset by the impact of a prior-year divestiture. Organic net revenues rose 2.2% year over year in the second quarter, primarily driven by pricing and volume/mix, which contributed growth of 1.5% and 0.7%, respectively.Revenues from emerging markets increased 7.4% year over year to $3,909 million, with organic growth of 4.4%. Growth was broad-based across all snacking categories except chocolate, where gains were primarily pricing-led and partially affected by purchase price accounting. Key growth markets included India, continued strength in Brazil and robust performances in Mexico and Southeast Asia. Revenues from developed markets increased 1.9% year over year to $5,446 million, with organic growth of 0.7%. This increase reflected gradual improvement across key regions, with North America driving revenue, volume, profit and market share growth, while the European business continued to show signs of recovery.Region-wise, revenues jumped 15.1% in Latin America, 8.2% in Asia, the Middle East and Africa (“AMEA”), 3% in North America and fell 1% in Europe. On an organic basis, revenues rose 8.4% in Latin America, 7.1% in AMEA, 3.4% in North America and fell 3.5% in Europe.Adjusted gross profit increased $92 million at constant currency, while the adjusted gross profit margin improved 20 basis points to 34%, benefiting from higher net pricing and lower manufacturing costs driven by productivity, partially offset by elevated raw material costs.Adjusted operating income declined $78 million at constant currency, while the adjusted operating margin contracted 120 basis points to 13.1%, reflecting higher raw material, selling, general and administrative, and advertising and consumer promotion costs, partly offset by higher net pricing and reduced manufacturing costs driven by productivity. For 2026, the company now expects at least 2% organic net revenue growth, up from its previous guidance of flat to 2% growth. It continues to project adjusted EPS growth ranging from flat to 5% on a constant-currency basis and expects approximately $3 billion in free cash flow. In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -8.47% due to these changes. Currently, Mondelez has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Mondelez has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Mondelez is part of the Zacks Food - Miscellaneous industry. Over the past month, Lamb Weston (LW), a stock from the same industry, has gained 2.4%. The company reported its results for the quarter ended May 2026 more than a month ago. Lamb Weston reported revenues of $1.77 billion in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $0.87 for the same period compares with $0.87 a year ago. Lamb Weston is expected to post earnings of $0.58 per share for the current quarter, representing a year-over-year change of -21.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%. Lamb Weston has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report Lamb Weston (LW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Kraft Heinz Company KHC topped second-quarter earnings and sales expectations while raising its 2026 organic sales outlook. The results give investors some evidence that execution is improving as brand investment and international growth begin to show traction.The recovery is still incomplete. North American volumes remain weak, full-year margins are expected to contract and adjusted operating income is projected to decline sharply, keeping the focus on whether better demand trends can become sustainable. Kraft Heinz reported adjusted earnings of 56 cents per share, above the Zacks Consensus Estimate of 53 cents. Net sales of $6.262 billion also surpassed the consensus mark of $6.162 billion.The beat did not erase the underlying pressure. Adjusted earnings fell 18.8% year over year, while organic net sales declined 1.3% as a 2.6-point drop in volume/mix more than offset 1.3 points of pricing. Management now expects fiscal 2026 organic net sales to decline 0.5% to 2%, compared with its prior forecast for a 1.5% to 3.5% decline. The updated range still includes an approximately 100-basis-point impact from incremental SNAP headwinds.Demand trends have improved from earlier in the year. Management said consumption declined about 2.5% in the second quarter but improved to roughly 1% in July, with sequential improvement expected in the third and fourth quarters. Image Source: Zacks Investment Research North America organic net sales fell 2.7% in the second quarter. A 3.8-point decline in volume/mix overwhelmed a 1.1-point pricing contribution, with softness in U.S. meats remaining a key drag.The pressure is not unique to Kraft Heinz. The Campbell's Company CPB reported a 4% decline in both reported and organic net sales in its fiscal third quarter of 2026, while adjusted earnings per share fell 32%. Emerging Markets net sales increased 10.4% and organic net sales rose 8.5% in the second quarter. Pricing contributed 4.5 points and volume/mix added 4 points, giving Kraft Heinz growth from both price and demand.Management expects Emerging Markets growth to accelerate in the second half as an Indonesia-related drag is lapped. For broader branded-food context, Mondelez International, Inc. MDLZ reported second-quarter 2026 organic net revenue growth of 2.2%, including a 0.7% volume/mix increase. Image Source: Zacks Investment Research Adjusted gross profit margin was flat year over year at 34.1% in the second quarter. For fiscal 2026, Kraft Heinz still expects adjusted gross profit margin to decline 10 to 50 basis points.Constant-currency adjusted operating income is projected to fall 16% to 18%. The outlook incorporates about $700 million of incremental investment versus 2025, while inflation and unfavorable volume/mix continue to pressure near-term earnings leverage. Kraft Heinz's earnings beat and improved organic sales outlook strengthen the recovery narrative, but the investment case still depends on better volume trends and firmer profitability. The latest results improve visibility without removing the core execution risks.KHC currently carries a Zacks Rank #3 (Hold). Its Value Score of A supports the value case, while the Growth Score of D, Momentum Score of F and VGM Score of C indicate that favorable valuation characteristics are not yet matched by equally strong growth and momentum signals. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report The Campbell's Company (CPB) : Free Stock Analysis Report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

While cost-conscious buyers in developed markets continue to face cumulative inflation and greater scrutiny around discretionary snack consumption, international demand in emerging economies remains structurally strong. Mega-cap CPG giants such as Mondelez International, Inc. (NASDAQ:MDLZ) must balance pricing power with aggressive brand investments to capitalize on this environment. Mondelez International, Inc. (NASDAQ:MDLZ) demonstrated the resilience of its core snacking franchise on July 28, when it reported second-quarter 2026 financial results that beat Wall Street expectations on both the top and bottom lines for the fourth consecutive quarter. Net revenue increased 4.1% year-over-year to $9.36 billion, exceeding consensus estimates of $9.21 billion on organic growth of 2.2%. Adjusted earnings per share came in at $0.73, beating the $0.68 expectation by around 7%. Although shares rose 3% in regular trading to $62.48 and gained an additional 1% after hours, the company later gave up those gains as institutional investors evaluated management's cautious capital allocation approach. Underneath the headline beat, performance showed a stark geographic divide. Emerging markets led the quarter with 4.4% organic growth, driven by volume expansion in major growth corridors such as India, Mexico, and Brazil. In North America, Mondelez International, Inc. (NASDAQ:MDLZ) delivered sequential momentum and gained market share in the biscuit category, thus mitigating market concerns about inflation-weary consumers and GLP-1 health trends. Biscuits and baked snacks, the company's core business that includes Oreo, saw a 2.5% organic revenue increase. Europe remained the biggest operational drag, with a 3.5% organic revenue decline due to persistent regional volume pressure. Looking beyond 2026, management positioned 2027 as a pivotal moment for multi-year top-line growth. The company identified a number of growth catalysts as well, including a global relaunch of the flagship Oreo brand and a multi-category partnership with Biscoff, which management estimates could generate $500 million to $1 billion in incremental revenue over time across chocolate, biscuit, and ice cream varieties. Mondelez International, Inc. (NASDAQ:MDLZ) currently trades at a forward price-to-earnings ratio of 18.60x, making it an appealing entry point for a defensive consumer staple compounder that generates $3 billion in free cash flow annually. Institutional opinion recorded by Insider Monkey's database reveals consistent high-conviction support, with hedge fund ownership remaining stable at 55 funds in Q1 2026, the same as the previous quarter. Meanwhile, short interest is at a modest 2.65% of the float, indicating no speculative pressure on the company following its post-earnings short-fall. Mondelez International, Inc. (MDLZ)) is a high-quality global CPG anchor. While short-term traders responded coolly to management's choice to reinvest revenue growth in brand promotion, long-term investors are provided with a good entry point. Buying into an elite snacking franchise with 4.4% emerging market growth and a $3 billion free cash flow floor offers strong risk-reward visibility for the 2027 growth cycle. While we acknowledge the potential of MDLZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stagwell Inc (NASDAQ:STGW) reported its strongest second quarter ever with 10% organic revenue growth and 5% organic net revenue growth. Digital transformation segment saw 18% organic net revenue growth, driven by AI adoption and high-value work. Adjusted EBITDA increased 15% year-over-year to $109 million, with margins expanding 140 basis points to 17.2%. Net new business of $171 million was a record high, winning major accounts like IBM, Hershey, and Mondelez from legacy competitors. Adjusted EPS grew 39% year-over-year to $0.25, supported by strong EBITDA growth and share buybacks. Marketing services segment only achieved 0.5% organic net revenue growth, indicating slower performance in creative assignments. Media and commerce segment grew just 1% organically, lagging behind other segments. Net leverage remains elevated at 3.04 times, though the company targets mid-twos by year-end. Free cash flow conversion is still targeted at 50-60% of adjusted EBITDA, suggesting room for improvement. The company expects minimal M&A activity in 2026, relying heavily on organic growth which may limit diversification. Here are the key highlights from the Stagwell Inc (NASDAQ:STGW) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Warning! GuruFocus has detected 10 Warning Signs with STGW. Is STGW fairly valued? Test your thesis with our free DCF calculator. Q: Can you talk about what is driving the strong level of growth in digital transformation and if it is sustainable into the back half of 2026 and 2027?A: (Mark Penn, Chairman and CEO) I think it's sustainable for about 10 years. The conversion to AI is the primary driver. Every company that touches the consumer will have to redo how they communicate based on AI, creating an enormous backlog of work for firms like ours that focus on that last mile. We have the largest pipeline in history for these services, and we are getting higher-level assignments while working more efficiently, with about 75% of coding now done identically. Q: Agency peers are talking about a tougher environment for new business. Is Stagwell seeing any shortage of opportunities, and why is the company performing so well in competitive pitches?A: (Mark Penn, Chairman and CEO) We are seeing competitive differences come to the fore. While others have stepped back from creativity, we stepped up with premium creativity powered by AI, which is winning in the marketplace. This is why we won major accounts from legacy players. We have also opened pipelines in government and globally, and our new structure in the UK is resulting in double-digit organic growth. Q: How are you using AI to accelerate revenues and lower costs?A: (Mark Penn, Chairman and CEO) We set out a year and a half ago to infuse AI throughout every process. Our strong internal technology team has been at the forefront of implementing AI across the enterprise. Ryan (CFO) has been applying AI to back-office services, and our engineers are applying agentic coding to make work faster, simpler, and better. This is defining Stagwell as the leading transformer of marketing today. Q: Can you talk about the margin trajectory within the digital transformation business, particularly in the second half and into 2027?A: (Mark Penn, Chairman and CEO) The products we are delivering are becoming more efficient due to our smart use of AI internally. Client demand is high because they need this work done now to save money. Their focus is on getting online as quickly as possible, which supports our margin trajectory. Q: How do you think about capital allocation in the back half of the year, specifically regarding M&A, stock buybacks, and debt paydown?A: (Mark Penn, Chairman and CEO) We did not make many acquisitions in the first half, so there will be some in the second half, but the year will be primarily organic. Our capital allocation will be balanced: we aim to hit a debt ratio in the mid-twos by year-end, continue buybacks, fund CapEx, and do some acquisitions. As our stock value goes up, it becomes even more effective to do certain transactions. Q: How is the political business looking for the back half of the year and looking ahead to 2028?A: (Mark Penn, Chairman and CEO) Political is on track. Midterm elections are typically close in size to the past Presidential election. The day after the midterms, the Presidential race will start, so we expect significant political work in the second half of 2027 with the Presidential primaries. This is going to be a political supercycle unlike anything in modern history. Q: Regarding the enterprise tech products (like the Machine), you mentioned $16 million in committed revenue and a $16 million pipeline. Where are you at in that build, and what are you looking for through the rest of the year?A: (Mark Penn, Chairman and CEO) Our teams are 100% on track. We set a $25 million first-year goal for bookings and are on track to achieve it. We are now building the sales infrastructure to sell these products, which is different from our marketing services sales. This will work collaboratively with our existing client base and then expand to the outside market, and we expect it to really explode next year. Q: What is the strategy for M&A? Will the acquisitions be smaller or bigger?A: (Mark Penn, Chairman and CEO) I don't see anything huge or disruptive at this point. We have a pattern of buying small and mid-sized companies in areas with excellent growth potential that continue our path to global full service. We have also been successfully diversifying into owned media properties and will continue to look at acquisitions in that area. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Emerging markets delivered robust 4.4% top-line growth, driven by structural distribution expansion rather than cyclical trends, with India and Brazil reaching significant store milestones. North American performance is characterized by a 'K-shaped' recovery where consumers are simultaneously seeking value formats and premium 'better-for-you' options. Management attributes market share gains in North American crackers and biscuits to disciplined promotional execution and successful price-pack architecture, including single-serve and variety packs. The company is shifting toward a 'fewer, bigger bets' innovation strategy, focusing on high-growth platforms like functional snack bars, gluten-free options, and premium chocolate. European volume trajectories are expected to turn positive in the second half of the year as the company laps prior-year pricing actions and the regional situation stabilizes. A strategic pivot toward under-indexed channels, specifically value, convenience, and away-from-home, is providing a new runway for growth in mature markets like North America. Full-year organic revenue growth is projected at 'at least 2%,' assuming continued volume momentum in emerging markets and sequential improvement in North America. The company expects strong EPS growth in 2027, claiming the bottom line is largely insulated from commodity volatility through productivity levers and AI-enabled efficiencies. Management plans to accelerate advertising and consumer support (A&C) in the second half of the year to sustain brand momentum and support new product launches. The Lotus Biscoff partnership is projected to scale into a $500 million to $1 billion collaboration over the coming years through cross-branded chocolate and biscuit innovations. Earnings phasing for the remainder of the year will be back-weighted toward Q4 due to the timing of cocoa costs and the lapping of specific interest and tax items in Q3. The ongoing Middle East conflict continues to present a headwind, impacting both top-line revenue and bottom-line costs which are factored into the current guidance. While cocoa prices remain volatile, management notes that the industry's 10-month coverage and a significant supply surplus provide a more stable fundamental backdrop than in early 2024. An 'unprecedented heat wave' in Europe has temporarily pressured chocolate consumption, leading to tighter trade stock management in the second quarter. The company is actively pursuing a 'less cocoa-reliant' portfolio strategy to mitigate long-term commodity exposure by pushing non-chocolate snacks and fillings. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that value channels were historically deprioritized due to lower margins, but they are now developing specific pack architectures to optimize the margin structure for these high-growth areas. Growth in the convenience channel is being driven by a direct distribution approach in certain cities, moving away from the company's historical reliance on brokers for that channel. Luca Zaramella asserted that 2027 earnings are protected from cocoa volatility through supply chain productivity, AI overhead savings, and a shift toward less cocoa-intense products. He noted that current market price spikes are driven by technical factors like short squeezes rather than the fundamental supply-demand deficit seen previously. The collaboration involves three layers: co-branded chocolate tablets, licensing Biscoff as a standalone biscuit in emerging markets, and developing a Biscoff ice cream range. A fourth leg involving '7 Days' croissants with Biscoff filling and Oreo-Biscoff hybrids is currently under development. Dirk Van de Put highlighted that even in mature markets, 'away-from-home' channels like QSRs and company cafeterias remain under-penetrated and require specialized infrastructure currently being built. In emerging markets like India and China, approximately 50% of revenue growth is consistently driven by new store acquisitions.

Mondelez International, Inc. MDLZ posted second-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. Net sales increased year over year. Management raised fiscal 2026 guidance for organic net revenues.Adjusted earnings were 73 cents per share, which decreased 2.7% on a constant-currency (cc) basis. The decline was caused by weaker operating performance and higher interest and other expenses, partially offset by lower income taxes and favorable currency movements. The metric beat the Zacks Consensus Estimate of 67 cents per share. Mondelez International, Inc. price-consensus-eps-surprise-chart | Mondelez International, Inc. Quote Net revenues rose 4.1% year over year to $9,355 million, outpacing the Zacks Consensus Estimate of $9,227 million. This growth was driven by 2.2% organic net revenue growth and favorable currency movements, partly offset by the impact of a prior-year divestiture.Organic net revenues rose 2.2% year over year in the second quarter, primarily driven by pricing and volume/mix, which contributed growth of 1.5% and 0.7%, respectively. Revenues from emerging markets increased 7.4% year over year to $3,909 million, with organic growth of 4.4%. Growth was broad-based across all snacking categories except chocolate, where gains were primarily pricing-led and partially affected by purchase price accounting. Key growth markets included India, continued strength in Brazil and robust performances in Mexico and Southeast Asia. Revenues from developed markets increased 1.9% year over year to $5,446 million, with organic growth of 0.7%. This increase reflected gradual improvement across key regions, with North America driving revenue, volume, profit and market share growth, while the European business continued to show signs of recovery.Region-wise, revenues jumped 15.1% in Latin America, 8.2% in Asia, the Middle East and Africa (“AMEA”), 3% in North America and fell 1% in Europe. On an organic basis, revenues rose 8.4% in Latin America, 7.1% in AMEA, 3.4% in North America and fell 3.5% in Europe.Adjusted gross profit increased $92 million at constant currency, while the adjusted gross profit margin improved 20 basis points to 34%, benefiting from higher net pricing and lower manufacturing costs driven by productivity, partially offset by elevated raw material costs.Adjusted operating income declined $78 million at constant currency, while the adjusted operating margin contracted 120 basis points to 13.1%, reflecting higher raw material, selling, general and administrative, and advertising and consumer promotion costs, partly offset by higher net pricing and reduced manufacturing costs driven by productivity. MDLZ ended the quarter with cash and cash equivalents of $1,716 million and long-term debt of $16,460 million. For the six months ended June 30, 2026, the company generated $1,322 million in net cash from operating activities and delivered free cash flow of $668 million.Year to date, the company has returned $1.5 billion in capital to shareholders through dividends and share repurchases.MDLZ increased its quarterly cash dividend by 4% to 52 cents per share. For 2026, the company now expects at least 2% organic net revenue growth, up from its previous guidance of flat to 2% growth. It continues to project adjusted EPS growth ranging from flat to 5% on a constant-currency basis and expects approximately $3 billion in free cash flow. This Zacks Rank #3 (Hold) company has risen 1.7% in the past three months compared with the industry’s 3.3% growth. Image Source: Zacks Investment Research United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.US Foods Holding Corp. USFD engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.4%, on average.The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures.The J. M. Smucker Company SJM manufactures and markets branded food and beverage products worldwide. It currently has a Zacks Rank #2. SJM delivered a trailing four-quarter earnings surprise of 1.5%, on average.The Zacks Consensus Estimate for The J. M. Smucker’s current fiscal-year earnings indicates growth of 8.7%, from the prior-year reported levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report The J. M. Smucker Company (SJM) : Free Stock Analysis Report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report US Foods Holding Corp. (USFD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Mondelez International, Inc.? Here are five stocks we like better. Mondelez raised its full-year top-line outlook to at least 2% growth while maintaining its EPS guidance, citing plans to reinvest gains into emerging markets, innovation and distribution. Emerging markets remain a key growth engine, led by strong performance in India, Mexico and Brazil and continued distribution expansion; China is softer but expected to gradually improve. Management expects North America to continue improving and Europe to recover in the second half as pricing comparisons ease, while cocoa-related timing effects are expected to weigh on third-quarter earnings before reversing in the fourth quarter. Campbell's Soup Stock: Deep Value and a 7% Dividend Yield Mondelez International (NASDAQ:MDLZ) said it expects momentum in emerging markets, improving execution in North America and a recovery in Europe to support a strong second half, while maintaining its full-year earnings-per-share outlook despite increasing its top-line forecast. Chairman and Chief Executive Officer Dirk Van de Put said the company delivered 4.4% top-line growth in the second quarter, supported by strong volume. Executives described growth in emerging markets as structural rather than cyclical, citing category underpenetration, distribution expansion and sustained reinvestment. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit 5 High-Yield Stocks and ETFs to Buy and Hold for the Next Decade Van de Put said snacking demand remains solid across major emerging markets, with consumer confidence stable overall. India was described as “very strong,” while consumers in Mexico and Brazil remain solid. China is softer, he said, but Mondelez expects conditions there to gradually improve. The company has expanded distribution substantially, adding 100,000 stores in India. Its Brazilian business now reaches 1 million stores, while distribution is continuing to expand in China and Southeast Asia. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Mondelez Rips Higher on a Q1 Beat as Cocoa Pressure Finally Starts to Crack “The categories are still very under-penetrated,” Van de Put said. “We still have a long runway of more consumers consuming more every day.” Chief Financial Officer Amit Banati, speaking on his first earnings call after joining the company, said Mondelez has an “advantaged emerging markets platform” and opportunities to increase penetration, distribution and new consumption occasions through innovation. He also identified supply-chain productivity and AI-enabled efficiencies as potential sources of funds for future reinvestment. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Mondelez said its North American business accelerated sequentially from the first quarter, recording positive volume mix and strong net revenue growth while gaining share across its categories. Van de Put said the company expects that performance to continue in the second half. Consumer confidence has rebounded from lows but remains subdued, he said, as inflation and energy prices continue to pressure household budgets. The company is seeing a “K-shaped” consumer environment, with shoppers moving toward lower-priced formats while premium and better-for-you offerings also perform well. High-single-digit growth in value channels and mid-single-digit growth in away-from-home channels helped support results. Van de Put pointed to RITZ crackers, including RITZ Drizzled, Sour Patch Kids Chews, Oreo, ZBar, Give & Go, Perfect Snacks, Tate’s and Hu as areas of strength. Management attributed the improvement to disciplined promotions, innovation, price-pack architecture and increased advertising and consumer investment. Van de Put said the company plans to accelerate reinvestment during the second half. He added that Mondelez sees further North American distribution opportunities in value, convenience and away-from-home channels, where the company historically had not prioritized growth to the same degree as traditional food retail. The company is developing channel-specific products and working more directly in certain convenience markets, he said. Chief Operating Officer Luca Zaramella said Mondelez’s European chocolate business is on a positive volume-mix trajectory, with volumes expected to improve in the second half as the company laps prior-year pricing actions. He said negative pricing in Europe during the second quarter reflected adjustments made in the latter half of the prior year to address specific price gaps. Market share has improved in recent months in both volume and value terms, according to Zaramella. An unprecedented heat wave affected chocolate consumption and led Mondelez to keep trade inventories controlled during the quarter, he said. After the heat wave, management expects more activation around Biscoff and continued growth from Milka Choco Croissant. Zaramella said the company anticipates better top-line performance and a profitability rebound in Europe in the second half, setting up continued growth into 2027. Banati said Mondelez raised its full-year top-line outlook to “at least” 2% growth, with similar growth levels expected across the third and fourth quarters. The company expects positive volume mix and a modest pricing contribution for the balance of the year. However, the company maintained its EPS outlook, saying it intends to reinvest upside into areas showing momentum, including emerging markets, innovation and distribution. Management also cited incremental costs tied to the Middle East conflict, which it said are incorporated into its outlook. Zaramella said earnings will be more weighted toward the fourth quarter because cocoa-related phasing is expected to affect the third quarter before reversing in the fourth quarter. Interest and tax comparisons will also pressure third-quarter EPS, he said, characterizing the timing effects as mechanical rather than structural. While Mondelez no longer provides guidance based on gross-margin percentage, Zaramella said gross profit dollars rose 3% in the second quarter and should accelerate in both the third and fourth quarters. He also expects EBIT in dollar terms to rise in both periods, with greater growth in the fourth quarter. Management said the cocoa market is fundamentally in a better position than it was during the 2024 crisis, despite recent price increases. Zaramella cited an expected surplus of at least 500,000 metric tons this year, equal to about 10% of total cocoa demand, and said industry coverage stands at 10 months compared with seven months during 2024. He said early pod counts indicate the next crop may not be exceptional, while El Niño and short-covering activity have also supported prices. Still, Zaramella said Mondelez expects its 2027 earnings to be insulated to an extent from commodity volatility through positive volume mix, productivity initiatives, AI-related overhead efficiencies and a portfolio strategy aimed at reducing cocoa intensity. Innovation remains a central part of the strategy. Van de Put said products introduced in the past three years account for slightly more than 10% of Mondelez net revenue, with a longer-term goal of potentially moving toward 15%. He highlighted the company’s Biscoff collaboration, which includes Biscoff-filled chocolate products, licensed biscuit distribution in markets such as India and a planned Brazil launch early next year, as well as ice cream products. Van de Put said he believes the broader collaboration could eventually be worth between $500 million and $1 billion in the coming years. Mondelez International is a global snacks company headquartered in Chicago, Illinois, formed in 2012 when Kraft Foods split to create a business focused on snack foods and a separate North American grocery company. Mondelez develops, manufactures, markets and distributes a broad portfolio of snack products intended for retail, foodservice and e‑commerce channels around the world. The company's product mix centers on biscuits and cookies, chocolate and confectionery, gum and candy, and savory crackers and baked snacks. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Mondelez International Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Second Quarter Highlights1 Net Revenues +4.1%, Organic Net Revenues +2.2%, Volume/Mix +0.7% Diluted EPS increased 144.9% to $1.20Adjusted EPS was $0.73 which declined -2.7% on a constant currency basis Year-to-date cash provided by operating activities was $1.3 billionand Free Cash Flow was $0.7 billion Return of capital to shareholders was $1.5 billion in the first half of the yearAnnouncing +4% increase to quarterly dividend CHICAGO, July 28, 2026 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (Nasdaq: MDLZ) today reported its second quarter 2026 results. “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," said Dirk Van de Put, Chair and Chief Executive Officer. "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 Revenue Operating Income and Diluted EPS Second Quarter Commentary Net revenues increased 4.1 percent driven by our underlying Organic Net Revenue growth of 2.2 percent and favorable 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 favorable volume/mix. Gross profit increased $1,049 million, and gross profit margin increased 990 basis points to 42.6 percent primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives and by an increase in Adjusted Gross Profit1 margin, partially offset by incremental costs due to geopolitical conflicts, higher costs incurred for the ERP System Implementation program and an unfavorable 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 favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, partially offset by lower Adjusted Operating Income1 margin, an unfavorable 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 favorable 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 favorable 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 EPS1 was driven by operating declines and higher interest and other expense, partially offset by lower income tax and favorable currency-related items. 2026 Outlook Mondelēz International provides its outlook on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including future changes in foreign currency rates. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details. For 2026, the company now expects at least 2 percent Organic Net Revenue growth, which reflects the strength of its year-to-date performance. The company maintains its 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 percent3 and increase Adjusted EPS by $0.053. 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. Conference Call Mondelēz International will host a conference call for investors at 5 p.m. ET today. A listen-only webcast will be provided at www.mondelezinternational.com. An archive of the webcast will be available on the company’s web site. About Mondelēz International Mondelēz International, Inc. (Nasdaq: MDLZ) empowers people to snack right in over 150 countries around the world. With 2025 net revenues of approximately $38.5 billion, MDLZ is leading the future of snacking with iconic global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. Mondelēz International is a proud member of the Dow Jones Best-in-Class North America and World Indices, formerly Dow Jones Sustainability Indices. Visit www.mondelezinternational.com or follow the company on X at x.com/MDLZ. End Notes Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in both reported and constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information. Net earnings attributable to Mondelēz International. Currency estimate is based on published rates from XE.com on July 17, 2026. Additional Definitions Emerging markets consist of the entire Latin America region; the Asia, Middle East and Africa region excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries. Developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the Asia, Middle East and Africa region. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words, and variations of the words, “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” “target,” "remain," “potential,” “commitment,” “outlook,” “continue” or any other similar words Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control and are amplified by ongoing macroeconomic volatility and uncertainty, including current and potential trade and tariff actions affecting the countries where we operate. Important factors that could cause our actual results or performance to differ materially from those contained in or implied by our forward-looking statements include, but are not limited to, the following: weakness and/or volatility in macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation) and the instability of certain financial institutions; risks from operating globally including geopolitical, trade, tariff and regulatory uncertainties affecting developed and emerging markets; volatility of cocoa and other commodity input costs, our ability to effectively hedge such costs and the availability of commodities; geopolitical uncertainty, including the impact of ongoing or new developments in Ukraine and the Middle East, related current and future sanctions imposed by governments and other authorities and related impacts, including on our business operations, employees, reputation, brands, financial condition and results of operations; competition and our response to channel shifts and pricing and other competitive pressures; pricing actions and customer and consumer responses to such actions; promotion and protection of our reputation and brand image; weakness in consumer spending and/or changes in consumer preferences and demand, including evolving health and wellness trends, and our ability to predict, identify, interpret and meet these changes; the outcome and effects on us of legal and tax proceedings and government investigations; use of information technology and third party service providers; unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and supply, commodity, labor and transportation constraints; our ability to identify, complete, manage and realize the full extent of the benefits, cost savings, efficiencies and/or synergies presented by strategic acquisitions and other transactions as well as other strategic initiatives, such as our ERP System Implementation program; our investments and our ownership interests in those investments; restructuring actions and other transformation initiatives not yielding the anticipated benefits; changes in the assumptions on which restructuring actions or other transformation initiatives are based; the impact of climate change on our supply chain and operations; global or regional health pandemics or epidemics; consolidation of retail customers and competition with retailer and other economy brands; changes in our relationships with customers, suppliers or distributors; management of our workforce and shifts in labor availability or labor costs; compliance with legal, regulatory, tax and benefit laws and related changes, claims or actions, including evolving and potentially inconsistent federal, state, local and foreign requirements regarding food ingredients, additives, labeling and marketing; perceived or actual product quality issues or product recalls, or changing consumer, media, governmental or scientific perceptions of our products or their ingredients; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; our ability to protect our intellectual property and intangible assets; tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes; changes in currency exchange rates, controls and restrictions; volatility of and access to capital or other markets, interest rates, the effectiveness of our cash management programs and our liquidity; pension costs; significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets; and the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q. There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release except as required by applicable law or regulation. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Mondelēz International, Inc. and SubsidiariesReconciliation of GAAP and Non-GAAP Financial Measures(Unaudited) NON-GAAP FINANCIAL MEASURES In discussing its financial results and guidance, the company presents the following financial measures that are not in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”): Organic Net Revenue growth, Adjusted Gross Profit, Adjusted Operating Income, Adjusted Segment Operating Income, Adjusted Earnings Per Share (“EPS”) and Free Cash Flow. The company also presents financial information, including certain of these non-GAAP financial measures, on a constant currency basis. Management uses non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of business performance and as a factor in determining incentive compensation. The company believes that non-GAAP financial measures, when used in connection with results reported in accordance with U.S. GAAP, provide additional information to facilitate comparisons of our historical operating results and to enable a more comprehensive understanding of trends in our underlying operating results. The company also believes that presenting these measures allows investors to view our performance using the same measures that management and our Board of Directors use in evaluating the company’s business performance and trends. However, non-GAAP financial measures should be considered in addition to, and not as substitutes for, financial information prepared in accordance with U.S. GAAP. In addition, the company’s non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies. DEFINITIONS OF THE COMPANY’S NON-GAAP FINANCIAL MEASURES The company’s primary non-GAAP financial measures and corresponding metrics, listed below, reflect how we evaluate our current and prior year operating results. As new events or circumstances arise, these definitions could change. When these definitions change, the company provides the updated definitions and presents the related non-GAAP historical results on a comparable basis. When items no longer impact the company’s current or future presentation of non-GAAP operating results, the company removes these items from its non-GAAP definitions. “Organic Net Revenue” is defined as net revenues (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of acquisitions, divestitures and currency-related items. The company believes that Organic Net Revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results. Organic Net Revenue growth is presented on a consolidated basis, for each of our segments and for our emerging markets and developed markets. “Adjusted Gross Profit” is defined as gross profit (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of: restructuring charges, certain acquisition-related items, certain divestiture-related items, mark-to-market impacts from commodity and foreign currency derivative contracts economically hedging forecasted transactions, incremental costs due to geopolitical conflicts and certain operating costs from the ERP System Implementation program. The company also presents Adjusted Gross Profit margin, which is subject to the same adjustments as Adjusted Gross Profit. The company also evaluates growth in the company’s Adjusted Gross Profit on a constant currency basis. “Adjusted Operating Income” and “Adjusted Segment Operating Income” are defined as operating income or segment operating income (the most comparable U.S. GAAP financial measures) excluding, when they occur, the impacts of the items listed in the Adjusted Gross Profit definition as well as goodwill and intangible asset impairment charges, remeasurement of net monetary position of highly inflationary countries; resolution of tax matters and operating costs from the ERP System Implementation program. The company also presents Adjusted Operating Income margin and Adjusted Segment Operating Income margin, which are subject to the same adjustments as Adjusted Operating Income and Adjusted Segment Operating Income. The company also evaluates growth in the company’s Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis. “Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of the items listed in the Adjusted Operating Income definition, as well as pension participation changes, initial impacts from enacted tax law changes and gains or losses on equity method investment transactions. The tax impacts of the items excluded from the company’s U.S. GAAP results were computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. The company also evaluates growth in the company’s Adjusted EPS on a constant currency basis. “Free Cash Flow” is defined as net cash provided by operating activities (the most comparable U.S. GAAP financial measure) less capital expenditures. Free Cash Flow is the company’s primary measure used to monitor its cash flow performance. See the attached schedules for supplemental financial data and corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable U.S. GAAP financial measures for the three and six months ended June 30, 2026 and June 30, 2025. See Items Impacting Comparability of Operating Results below for more information about the items referenced in these definitions that specifically impacted the company’s results. SEGMENT OPERATING INCOMEThe company uses segment operating income to evaluate segment performance and allocate resources. The company believes it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes certain mark-to-market impacts on commodity and foreign currency derivatives (which are primarily a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. The company excludes these items from segment operating income in order to provide better transparency of its segment operating results. Furthermore, the company centrally manages benefit plan non-service income and interest and other expense, net. The company does not present the items above by segment because they are excluded from the segment profitability measure that management reviews. ITEMS IMPACTING COMPARABILITY OF FINANCIAL RESULTSThe company considers quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of its ongoing financial and business performance and trends. The company identifies these based on how management views the company’s business; makes financial, operating and planning decisions; and evaluates the company’s ongoing performance. The below items are adjusted for in the company’s non-GAAP financial measures to better facilitate comparisons of its underlying performance across periods, as they are highly variable or unusual and of a size that may substantially impact its reported operations for a period. In addition, the company discloses the impact of currency-related items on its financial results to reflect results on a constant currency basis. See below for a description of adjustments to the company’s U.S. GAAP financial measures included herein. Restructuring charges – Beginning in the fourth quarter of 2025, the company initiated new restructuring actions to reduce its cost structure and streamline its operations. The charges associated with those actions primarily relate to severance and other implementation costs. The company completed its previous Simplify to Grow Program in 2024. Following the completion of that earlier restructuring program, any adjustments to the liabilities for previously recorded charges, which were immaterial for each period presented, continue to be reflected within this item. Mark-to-market impacts from derivatives – The company excludes unrealized gains and losses (mark-to-market impacts) from commodity and foreign currency derivative contracts economically hedging forecasted transactions from its non-GAAP earnings measures. The mark-to-market impacts of those derivatives are excluded until the related gains or losses are realized. Since the company purchases commodity and foreign currency derivative contracts to mitigate price volatility primarily for inventory requirements in future periods, the company makes this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of its underlying operating performance across periods. Acquisition-related items – Includes acquisition-related costs, acquisition integration costs, contingent consideration adjustments, inventory step-ups and gains from acquisitions. Acquisition-related costs include third-party advisor, investment banking and legal fees. Acquisition integration costs include costs related to the integration of operations from acquisitions. Contingent consideration adjustments include any changes made to contingent compensation liabilities for earn-outs related to acquisitions that do not relate to recurring employee compensation expense. Other acquisition-related items include incremental costs from inventory step-ups associated with acquired companies related to the fair market valuation of the acquired inventory and acquisition gains from the remeasurement of an existing noncontrolling investment to fair value when the company acquires the remaining equity shares of the investee. Divestiture-related items – Includes operating results from divestitures, divestiture-related costs and gains or losses on divestitures. Divestitures may include sales of businesses, exits of major product lines upon completion of a sale or licensing agreement, or sales of equity method investments. Divestiture-related costs include costs incurred in relation to the preparation and completion of divestiture transactions (including one-time costs such as severance related to the elimination of stranded costs) as well as costs incurred associated with publicly announced processes to sell businesses. Incremental costs due to geopolitical conflicts – Reflects impacts related to the ongoing conflicts in the Middle East and Ukraine. Includes costs related to transportation surcharges, evacuation costs and committed compensation. ERP System Implementation costs – The company’s ERP System Implementation program is being implemented by region in several phases with spending continuing over the next three years, with expected completion by year-end 2028. The operating expenses associated with the ERP System Implementation represent incremental transformational costs above the normal ongoing level of spending on information technology to support operations. These expenses include third-party consulting fees, direct labor costs associated with the program, accelerated depreciation of the company's existing SAP financial systems and various other expenses, all associated with the implementation of the company's information technology upgrades. Remeasurement of net monetary position of highly inflationary countries – The company’s operations in Argentina, Türkiye, Egypt and Nigeria are currently accounted for as highly inflationary. The company excludes remeasurement gains and losses of the monetary assets and liabilities of its subsidiaries in highly inflationary economies and the realized gains and losses from derivatives that mitigate the foreign currency volatility related to the remeasurement of the respective net monetary assets or liabilities from its non-GAAP earnings measures. Pension participation changes – Consists of the charges incurred, primarily gains or losses from pension curtailments and settlements, including settlement losses from full or partial buyouts of the company's pension plans, as well as costs incurred when employee groups are withdrawn from multiemployer pension plans. The company excludes these charges from its non-GAAP results because those amounts do not reflect the company's ongoing pension obligations. Initial impacts from enacted tax law changes – Initial impacts from enacted tax law changes include items such as the remeasurement of deferred tax balances and transition taxes from tax reforms. We exclude initial impacts from enacted tax law changes from our non-GAAP financial measures as they do not reflect our ongoing tax obligations under the enacted tax law. Gains and losses on equity method investment transactions – The company excludes gains and losses from partial or full sales of equity method investments as well as impairments or other non-routine transactions related to those investments. Currency-related items – Management also evaluates the operating performance of the company and its international subsidiaries on a constant currency basis. The company's non-GAAP measures presented on a constant currency basis exclude the effects of currency translation rate changes and extreme pricing increases in Argentina. Currency translation rate changes – the company determines its constant currency operating results by dividing or multiplying, as appropriate, the current period local currency operating results by the currency exchange rates used to translate the company’s financial statements in the comparable prior year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rates had not changed from the comparable prior year period.  Therefore, currency translation rate changes are equal to current period local currency operating results multiplied by the change in average foreign currency exchange rates between the current fiscal period and the corresponding period of the prior fiscal year. Extreme Pricing – during December 2023, the Argentinean peso significantly devalued. The peso's devaluation and potential resulting distortion on the company's non-GAAP Organic Net Revenue, Organic Net Revenue growth and other constant currency growth rate measures resulted in the company's decision to exclude the impact of pricing increases in excess of 26% year-over-year ("extreme pricing") in Argentina, from these measures beginning in the first quarter of 2024. The benchmark of 26% represents the min...imum annual inflation rate for each year over a 3-year period which would result in a cumulative inflation rate in excess of 100%, the level at which an economy is considered hyperinflationary under U.S. GAAP. OUTLOOKThe company’s Organic Net Revenue growth, Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense, Adjusted Effective Tax Rate and Free Cash Flow for full-year 2026 are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results such as the impact of changes in currency exchange rates, intangible asset impairment charges, acquisitions and divestitures. Because GAAP financial measures on a forward-looking basis are not accessible and reconciling information is not available without unreasonable effort, the company has not provided that information with regard to the non-GAAP financial measures in the outlook. The company is not able to reconcile its projected Organic Net Revenue growth to its projected reported net revenue growth for the full-year 2026 because the company is unable to predict during this period the impacts from potential acquisitions or divestitures, as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company’s operations are outside the U.S. The company is not able to reconcile the projected Adjusted EPS growth on a constant currency basis, Adjusted Interest Expense and Adjusted Effective Tax Rate to the company's projected reported diluted EPS growth, reported interest and other expense, net, and reported effective tax rate, respectively, for full-year 2026 due to several factors, which could include: the company's ability to predict during this period mark-to-market impacts from commodity and foreign currency derivative contracts, impacts of any impairment charges that may arise in a future period and impacts from potential acquisitions or divestitures as well as the impact of currency translation due to the unpredictability of future changes in currency exchange rates, which could be material as a significant portion of the company's operations are outside the U.S. The company is not able to reconcile the projected Free Cash Flow to the projected net cash from operating activities for full-year 2026 because the company is unable to predict during this period the timing and amount of capital expenditures impacting cash flow. Therefore, because of the uncertainty and variability of the nature and amounts of future adjustments, which could be significant, the company is unable to provide a reconciliation of these measures without unreasonable effort.