UPDATE: Mondelez Posts Upbeat Q1 Earnings, Plans To Combine Coffee Business With D.E. Master Blenders
Mondelez International (NASDAQ: MDLZ) reported a drop in its first-quarter earnings. The company announced its plans to combine its coffee business with D.E. Master Blenders 1753 B.V and also announced a $3.5 billion corporate restructuring plan.
Mondelez's quarterly net profit dropped to $163 million, or $0.09 per share, versus a year-ago profit of $669 million, or $0.39 per share. Its adjusted earnings came in at $0.39 per share.
Its net revenue fell 1.2% to $8.6 billion, while operating income rose 1.1% to $843 million. However, analysts were expecting earnings of $0.35 per share on revenue of $8.66 billion.
Irene Rosenfeld, Chairman and CEO said, "The strategic and cost-reduction actions we announced today underscore our determination to become a leaner, more focused and more nimble global snacking powerhouse"
On a regional basis, revenue in Latin America climbed 14.7%, while Asia Pacific's revenue declined 2.7%. Revenue in Europe tumbled 1.0%, while North America's revenue rose 2.5%.
The executive continued, "As our first quarter results show, we're making meaningful progress toward our margin goals, while continuing to deliver solid growth and market shares. These strategic and cost-reduction actions will strengthen our core snacking business, simplify our operations and enhance our ability to deliver world-class margins. At the same time, our shareholders will continue to share in the future growth of the coffee category through our ownership interest in an advantaged, more focused coffee company."
Mondelez's shares surged 7.27% to $37.78 in pre-market trading.
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