MONDELEZ INTERNATIONAL, INC. FORM 8-K (Current report filing) Filed 05/07/13 for the Period Ending 05/07/13 Address THREE PARKWAY NORTH DEERFIELD, IL 60015 Telephone 847-943-4000 CIK 0001103982 Symbol MDLZ SIC Code 2000 - Food and kindred products Industry Food Processing Sector Consumer/Non-Cyclical Fiscal Year 12/31 http://www.edgar-online.com © Copyright 2013, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): May 7, 2013 Mondel ēz International, Inc. (Exact name of registrant as specified in its charter) Virginia 1-16483 52 -2284372 (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification No.) Three Parkway North, Deerfield, Illinois 60015 (Address of Principal executive offices) (Zip Code) Registrant’s Telephone number, including area code: (847) 943-4000 Not Applicable (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre -commencement communications pursuant to Rule 13e -4(c) under the Exchange Act (17 CFR 240.13e -4(c)) Item 2.02. Results of Operations and Financial Condition. This information, including Exhibit 99.1, will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and it will not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing. On May 7, 2013, Mondel ēz International, Inc., a Virginia corporation, issued a press release announcing earnings for the first quarter ended March 31, 2013. A copy of the earnings press release is furnished as Exhibit 99.1 to this current report. Item 9.01. Financial Statements and Exhibits. (d) The following exhibit is being furnished with this Current Report on Form 8-K. Exhibit Number Description 99.1 Mondel ēz International, Inc. Press Release, dated May 7, 2013. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MONDEL ĒZ INTERNATIONAL, INC. Date: May 7, 2013 / S / D AVID A. B REARTON Name: David A. Brearton Title: Executive Vice President and Chief Financial Officer Exhibit 99.1 Contacts: Michael Mitchell (Media) Dexter Congbalay (Investors) +1 -847 -943 -5678 +1 -847 -943 -5454 [email protected] [email protected] Mondel ēz International Reports First Quarter 2013 Results 1 • Net revenues were $8.7 billion; Organic Net Revenues increased 3.8% 1 • Diluted EPS was $0.32; Operating EPS was $0.34, up 22.6% on a constant currency basis • Company reaffirms 2013 Organic Net Revenue growth outlook at the low end of 5 – 7% range and raises Operating EPS guidance to $1.55 – $1.60 DEERFIELD, Ill. – May 7, 2013 – Mondel ēz International, Inc. (NASDAQ: MDLZ) today reported first quarter 2013 results. “Our first quarter results were in line with the expectations we outlined earlier this year as we work through some near-term headwinds,” said Irene Rosenfeld, Chairman and CEO. “Although we’re not satisfied that our top-line growth remained below our long-term target, our results show that we’ve built solid underlying momentum. And I’m confident that we’ll deliver our 2013 commitments as we continue to leverage our advantaged category mix, leading market positions and strong geographic footprint, particularly in emerging markets 2 .” Net revenues were $8.7 billion, up 0.9 percent. Organic Net Revenues increased 3.8 percent, including solid contributions from higher volume/mix of 2.5 percentage points and favorable pricing of 1.3 percentage points. The pass-through of lower coffee commodity costs tempered the company’s overall top-line growth by 1.3 percentage points. Revenues from emerging markets accelerated sequentially, up 9.3 percent, led by double-digit gains in China, Brazil and India, and continued improvement in Russia. Developed markets 3 grew 0.4 percent, with growth in North America partially offset by the impact of lower coffee pricing in Europe and continued gum weakness. Power Brands grew 7.5 percent, nearly double the company rate. Tuc/Club Social, Chips Ahoy! , Barni and Oreo biscuits, Milka , Cadbury Dairy Milk and Lacta chocolate, Halls candy, Stride gum and Tang beverages each posted strong increases. Gross profit was $3.2 billion, up 1.5 percent, while gross profit margin was 37.1 percent. Adjusted Gross Profit 1 increased 3.9 percent on a constant currency basis, driven by strong volume/mix gains. Pricing fully offset higher input costs. Adjusted Gross Profit margin was flat to prior year. 1 Operating income was $0.8 billion, down 7.6 percent, while operating income margin was 9.5 percent. Adjusted Operating Income 1 decreased 4.0 percent on a constant currency basis, and included a negative 3.4 percentage point impact from previously disclosed prior year one-time items. 4 Excluding these items, gross profit gains were more than offset by higher SG&A predominately in emerging markets, including increased investments in sales capabilities, route-to-market expansion as well as advertising and consumer support. Adjusted Operating Income margin was 10.3 percent, down 1.6 percentage points, including the negative impacts of 0.6 percentage points due to the devaluation of net monetary assets in Venezuela and 0.4 percentage points from prior year one-time items. 4 Diluted EPS was $0.32. Operating EPS was $0.34, including a negative $0.04 impact from currency. On a constant currency basis, Operating EPS increased 22.6 percent, reflecting a positive $0.09 impact of lower taxes, primarily from discrete items. Strong Momentum in Latin America Led by Brazil Latin America delivered strong top-line growth driven by a resurgence in Brazil and solid performance in other key markets in the region. Net revenues increased 2.0 percent. Organic Net Revenues grew 12.6 percent, with contributions from both higher pricing and volume/mix. Brazil increased mid-teens with double-digit volume/mix gains and higher pricing. Power Brands grew 12.3 percent, led by Club Social and Oreo biscuits, Lacta chocolate and Halls candy. Segment operating income decreased 43.6 percent. Segment operating income margin decreased 5.3 percentage points to 6.6 percent. Adjusted Segment Operating Income was flat versus prior year on a constant currency basis. Higher gross profit was offset by higher overheads, including increased investments in sales capabilities and route-to-market expansion. Adjusted Segment Operating Income margin was 6.9 percent, down 5.7 percentage points primarily due to negative impacts from the devaluation of the Venezuelan bolivar. Emerging Markets in Asia Pacific Drove Solid Top-line Growth Asia Pacific delivered strong emerging markets performance despite capacity constraints in India, while the region’s developed markets restrained overall growth. Net revenues increased 3.6 percent. Organic Net Revenues grew 5.8 percent, driven by both higher volume/mix and pricing. Organic Net Revenues for the region’s emerging markets grew double digits, led by China, India and the Philippines. Developed markets in the region declined low single digits, largely due to gum weakness in Japan. 2 Power Brands grew very strongly, up 20.3 percent, led by Oreo and Chips Ahoy! biscuits, Cadbury Dairy Milk chocolate, Halls candy, Stride gum and Tang beverages. Segment operating income increased 6.8 percent. Segment operating income margin increased 0.4 percentage points to 13.8 percent. Adjusted Segment Operating Income increased 4.8 percent on a constant currency basis, including a positive 10.1 percentage point impact from cycling of a prior year asset impairment charge. Excluding this impact, higher gross profit was more than offset by higher overheads, including increased investments in sales capabilities and route-to-market expansion, as well as increased A&C support. Adjusted Segment Operating Income margin decreased 0.1 percentage point to 14.1 percent. Strong Volume/Mix Growth for EEMEA Strong volume/mix gains across the region, as well as continued sequential improvement in Russia, drove solid top-line growth for the Eastern Europe, Middle East and Africa region. Net revenues increased 1.6 percent. Organic Net Revenues grew 4.0 percent, as strong volume/mix gains were partially offset by lower pricing. Russia continued to improve sequentially with organic growth in the low single digits behind strong volume/mix performance, partially offset by significantly lower pricing in coffee and chocolate. Power Brands grew 8.1 percent, led by Oreo and Barni biscuits, Cadbury Dairy Milk chocolate, Halls candy, and Jacobs and Tang beverages. Segment operating income decreased 55.8 percent. Segment operating income margin decreased 9.2 percentage points to 7.1 percent. Adjusted Segment Operating Income decreased 46.5 percent on a constant currency basis, including a negative 38.2 percentage point impact from cycling the prior year’s gain on the sale of property in Russia.