On October 28, 2025, Mondelēz International, Inc. (Nasdaq: MDLZ) announced its third quarter results for 2025, showcasing solid top-line growth amidst unprecedented cocoa cost inflation. CEO Dirk Van de Put expressed optimism about the company's performance despite facing record-high raw material costs, particularly cocoa, which peaked this quarter.

"We delivered solid top-line growth despite the impact of record-high cocoa cost inflation, with the third quarter representing peak costs of the year,” stated Van de Put. He noted that while some markets are expected to remain challenging, recent moderation in cocoa prices and signs of a robust cocoa crop this fall provide a hopeful outlook.

2. Financial Highlights

Net Revenue Performance

Mondelēz reported net revenues of $9.744 billion for Q3 2025, marking a 5.9% increase year-over-year. This growth is attributed primarily to 3.4% organic net revenue growth, benefiting from higher pricing strategies, although it faced headwinds from unfavorable volume/mix.

Regional Breakdown of Net Revenues:

Latin America: $1.238 billion (2.8% growth)

Asia, Middle East & Africa: $2.017 billion (9.0% growth)

Europe: $3.674 billion (10.6% growth)

North America: $2.815 billion (0.4% decline)

Emerging markets showed a robust performance with 9.9% growth, while developed markets grew modestly at 3.3%.

Profitability Metrics

Despite the revenue growth, the company faced significant challenges in profitability:

Gross Profit: Decreased by $387 million with a margin of 26.8%, down 580 basis points due to rising raw material costs and unfavorable product mix.

Operating Income: Fell to $744 million, a 35.5% decline compared to the prior year, leading to an operating income margin of 7.6%.

Diluted Earnings Per Share (EPS): Reported at $0.57, down 9.5%, reflecting the impact of rising costs and an unfavorable year-over-year change in acquisition-related items.

In contrast, Adjusted EPS was reported at $0.73, which is a 24.2% decline on a constant currency basis, influenced by operating declines and external market pressures.

3. Capital Return and Future Outlook

In the first nine months of 2025, Mondelēz returned $3.7 billion to shareholders through cash dividends and share repurchases, highlighting its commitment to shareholder value even amidst financial strain.

Looking forward, the company has revised its 2025 outlook. It now anticipates organic net revenue growth of 4%+ and a decline in adjusted EPS of approximately 15% on a constant currency basis. The anticipated free cash flow for 2025 is projected to exceed $3 billion.

Van de Put emphasized the company's resilience, stating, "We remain confident in our teams' proven track record of navigating volatility." He acknowledged the ongoing geopolitical, trade, and regulatory uncertainties that could impact the business landscape moving forward.

4. Conclusion

Mondelēz International's Q3 2025 results reflect a company navigating a tumultuous market characterized by high cocoa costs and inflationary pressures. Despite these challenges, the firm continues to focus on strategic growth investments and operational efficiencies. As it prepares for an uncertain future, Mondelēz remains committed to delivering value to its shareholders and maintaining its market leadership in the global snacking industry.

The company will host a conference call for investors at 5 p.m. ET today, providing further insights into its quarterly performance and strategic initiatives.

Original press release