Mondelēz Q3 Revenue Growth Turns Volume-Led; Outlook Maintained

Mondelēz International (NASDAQ: MDLZ) delivered volume-led revenue growth and double-digit adjusted profit growth in the third quarter of 2026, while maintaining its full-year outlook. Organic net revenue increased 2.1%, with volume/mix contributing 1.8 percentage points and pricing adding 0.3 points, marking a notable step-up from volume/mix growth of 0.7% in the second quarter.

Reported net revenue rose 2.3% to $9.97 billion for the three months ended September 30. Adjusted gross profit increased 14.9% to $3.41 billion, or 14.0% at constant currency, while adjusted operating income advanced 18.2% to $1.38 billion, equivalent to 17.0% growth at constant currency. The adjusted operating margin expanded 1.9 percentage points to 13.9%, even as the company continued investing in advertising and consumer support.

Adjusted diluted earnings were $0.78 per share, up 6.8% on a reported-currency basis and 5.5% at constant currency. Operating gains were partly offset by higher taxes, primarily because the year-earlier quarter included one-time benefits. GAAP diluted earnings rose 78.9% to $1.02 per share, with the difference between reported and adjusted results including mark-to-market gains on derivatives and other items.

Emerging markets lead regional growth

Emerging markets, which accounted for about 40% of 2025 revenue, generated 4.1% organic growth in the quarter. Volume/mix rose 2.2%, while pricing contributed 1.9%. Developed markets grew 0.8%, supported by a 1.5% volume/mix increase that more than offset a 0.7% pricing decline.

AMEA recorded the strongest regional performance, with organic revenue up 7.7% and volume/mix contributing 5.5 percentage points. Latin America grew 6.9%, driven mainly by 6.1 points of pricing and 0.8 points of volume/mix.

North American organic revenue increased 1.6%, with pricing accounting for the growth and volume/mix unchanged. Mondelēz said the region benefited from market-share gains as cautious consumers favored value channels, smaller packages and selected premium and better-for-you products.

Europe’s organic revenue declined 2.1% as pricing fell 3.7%, but volume/mix returned to growth at 1.6%. The company said chocolate volumes remained soft amid record heat, although underlying trends improved as pricing slowed. Biscuit demand posted moderate growth.

Volume gains extend across core snack categories

All three core snack categories produced positive volume/mix growth during the quarter. Biscuits and baked snacks, the company’s largest category, generated 2.2% organic growth, including a 1.2% contribution from volume/mix. Chocolate organic revenue increased 0.6% as a 2.8% volume/mix gain offset a 2.2% pricing decline. Gum and candy grew 6.9%, supported by 2.6% volume/mix growth and 4.3% pricing.

Mondelēz said about 70% of measured snack revenue was gaining or holding market share year to date, compared with roughly 40% in 2025. The presentation highlighted strength in emerging-market biscuits, including Oreo and Biscoff, and gains in chocolate through broader distribution, entry-price packages and premium offerings.

For the first nine months of 2026, reported revenue rose 4.9% to $29.40 billion, while organic revenue increased 2.4%. Year-to-date volume/mix contributed 0.6 percentage points and pricing added 1.8 points. Adjusted operating income declined 3.7% at constant currency, however, and adjusted EPS fell 4.1% on the same basis to $2.11. Free cash flow increased to $1.66 billion from $1.24 billion a year earlier.

The company said it had returned $2.8 billion of capital to shareholders year to date. The presentation listed $800 million of share repurchases at an average price of $60.60 and $1.9 billion of dividends.

Full-year outlook maintained

Mondelēz maintained its 2026 outlook for organic net revenue growth of at least 2%, adjusted EPS growth of flat to 5% at constant currency, and approximately $3 billion of free cash flow. Its planning assumptions include low-single-digit inflation as a percentage of cost of goods sold, about $350 million of adjusted interest expense, an adjusted effective tax rate in the mid-20% range and share repurchases of up to $2 billion.

Based on exchange rates published October 22, the company expects currency translation to add approximately 1.5 percentage points to revenue and $0.04 to EPS. Management also continues to expect strong EPS growth in 2027, while emphasizing cost savings and continued brand investment.

Separately, Mondelēz signed an agreement to acquire a majority stake in Undercover Snacks, a maker of chocolate- and frosting-covered quinoa crisps. The transaction is expected to close in early 2027, subject to customary regulatory review. Founder and CEO Diana Levy is expected to continue operating the business independently.

The outlook remains subject to cautious consumer spending, inflationary pressure and global volatility. The presentation also identified shifts toward smaller packs, value-oriented channels and e-commerce, while unusually hot weather weighed on European chocolate demand. Currency movements represent an additional uncertainty because a significant portion of Mondelēz’s operations is outside the United States.