AI Takeaway
Mondelez International (MDLZ) reported FY2025 revenue growth of 5.8% to $38.5B, but profitability was severely pressured by a 24.4% surge in cost of revenue, causing gross margin to collapse by ~10.7 percentage points and net income to fall nearly 47% to $2.45B.
Revenue
$38.54B
++5.75% YoY
EPS (Basic)
$1.89
-45.06% YoY
Gross Margin
28.4%
-10.75% YoY
Operating Income
$3.55B
-44.08% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
MDLZ grew total revenue by 5.8% YoY to $38.54B in FY2025 (vs. $36.44B in FY2024), suggesting the company maintained top-line momentum likely through pricing actions and/or volume gains, even as the broader consumer staples environment remained challenging.
Source: Source: 10-K Income Statement, Financial Data
Cost of revenue surged 24.4% YoY to $27.60B, far outpacing revenue growth of 5.8%, resulting in gross profit declining 23.3% to $10.94B. Gross margin compressed dramatically from 39.1% to 28.4%, a ~10.7 percentage point deterioration, likely driven by elevated commodity costs (notably cocoa) and supply chain pressures.
Source: Source: 10-K Income Statement, Financial Data
Operating income fell 44.1% to $3.55B (from $6.35B), and net income dropped 46.8% to $2.45B (from $4.61B). Operating margin compressed from 17.4% to 9.2%, reflecting the inability to offset input cost inflation through pricing or SG&A reductions alone.
Source: Source: 10-K Income Statement, Financial Data
2 more insights available
Upgrade to unlockThe 24.4% surge in cost of revenue strongly suggests extreme commodity cost inflation, most likely driven by historically elevated cocoa prices, which are a core input for Mondelez's chocolate-heavy portfolio. If commodity prices remain elevated or rise further, margins could face continued or worsening pressure. MDLZ's ability to pass through costs via pricing is limited by consumer price sensitivity and competitive dynamics.
Source: Source: 10-K Income Statement, Financial Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.72 versus the $0.71 analyst consensus — a +1.3% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $38.54B | $36.44B | +5.75% |
Cost of Revenue | $27.6B | $22.18B | +24.42% |
Gross Profit | $10.94B | $14.26B | -23.30% |
Operating Income | $3.55B | $6.34B | -44.08% |
Net Income | $2.45B | $4.61B | -46.84% |
EPS (Basic) | $1.89 | $3.44 | -45.06% |
EPS (Diluted) | $1.89 | $3.42 | -44.74% |
R&D Expense | $400M | $400M | 0.00% |
SG&A Expense | $7.17B | $7.44B | -3.58% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $71.49B | $68.5B | +4.37% |
Current Assets | $12.95B | $13.24B | -2.20% |
Total Liabilities | $45.6B | $41.54B | +9.77% |
Current Liabilities | $21.86B | $19.55B | +11.84% |
Stockholders' Equity | $25.84B | $26.93B | -4.06% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.51B | $4.91B | -8.07% |
Investing Cash Flow | $-1.2B | $526M | -327.38% |
Financing Cash Flow | $-2.76B | $-5.78B | +52.27% |
Dividends Paid | $2.49B | $2.35B | +5.87% |
Share Buybacks | $2.38B | $2.33B | +2.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 28.4% | 39.1% | -10.75% |
Operating Margin | 9.2% | 17.4% | -8.20% |
Net Margin | 6.4% | — | — |
ROE | 9.5% | — | — |
ROA | 3.4% | — | — |
Current Ratio | $0.592 | — | — |
Debt to Equity | $1.765 | — | — |
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MDLZ reported a dramatic decline in profitability in FY2025 despite revenue growing 5.8% to $38.54B. Net income fell 46.8% to $2.45B and basic EPS dropped 45.1% to $1.89, primarily because cost of revenue surged 24.4% to $27.60B, crushing gross margin from 39.1% to 28.4%.
MDLZ's gross margin collapsed approximately 10.7 percentage points from 39.1% to 28.4% in FY2025, driven by a 24.4% surge in cost of revenue to $27.60B that far outpaced revenue growth of 5.8%. This is consistent with severe commodity cost inflation, particularly in cocoa, which is a key input for Mondelez's chocolate products.
Yes, MDLZ continued paying and growing its dividend in FY2025, with total dividends paid increasing 5.9% to $2.49B. The company also repurchased $2.39B in shares, returning a combined ~$4.87B to shareholders despite the sharp decline in net income.
MDLZ's financial health shows some stress in FY2025: the current ratio is a low 0.59x (current liabilities of $21.86B far exceed current assets of $12.95B), and the debt-to-equity ratio rose to 1.76x as total liabilities grew 9.8% to $45.60B. However, operating cash flow remained solid at $4.51B, providing a buffer for debt service and shareholder returns.
Mondelez grew revenue 5.8% YoY to $38.54B in FY2025, up from $36.44B in FY2024, suggesting the company achieved top-line growth through pricing actions and/or volume gains. However, this revenue growth was significantly overshadowed by the 24.4% increase in cost of revenue, which eroded profitability across all key metrics.