Steady revenue growth helped Mondelez match market returns

Mondelez International Inc. (NASDAQ:MDLZ) the stock price jumped more than 50% from $40 at the end of 2018 to around $62 currently, mainly due to favorable developments in its earnings per share. The company, a multinational manufacturer of confectionery, food, beverages and snacks, has seen a steady increase in revenue over this period, and combined with a decline in its number of shares outstanding, this has boosted an increase in earnings per share. Moreover, the company also saw an increase in its P/S multiple during this period, which helped it to conform to the S&P index, which returned around 55% during the same period.

In our interactive dashboard, Why Mondelez Stock Moved: MDLZ Stock Gained 56% Since 2018we break down the factors driving this movement.

(A) Mondelez’s total revenue increased 32% from $25.9 billion in fiscal 2018 to over $34 billion currently

  • Mondelez’s total revenue has grown steadily from $25.9 billion in fiscal year 2018 to $28.7 billion in fiscal year 21 and currently stands at approximately $34 billion. dollars.
  • As of fiscal 2021, approximately 39% of the company’s sales come from Europe, with North America coming in second at 29%.
  • In addition, Europe also contributes nearly 44% of the company’s operating profit.
  • Latin America was the company’s worst performing region, with sales falling from $3.02 billion in fiscal year 2019 to $2.8 billion in fiscal year 21 and that only brings in 5.5% of company revenue in FY21, down from 8.1% previously. in exercise ’19.
  • For more details on Mondelez earnings and peer comparison, see Mondelez (MDLZ) Revenue Comparison

(B) Earnings per share (EPS) increased 41% from $17.59 in fiscal 2018 to $24.81 currently

  • Mondelez revenue fell from $25.9 billion in fiscal 2018 to $34.2 billion currently, while the number of shares outstanding fell slightly from 1.5 billion in fiscal year 2018 to 1.4 billion currently.
  • Because of this, the RPS has gone from $17.59 in fiscal year 2018 to $24.81 currently.

(C) Mondelez’s price-to-sales (P/S) multiple fell from 2.1x at the end of 2018 to 3.2x at the end of 2021, but is back to 2.5x currently, still around 18% above its 2018 level

  • Due to Mondelez’s outstanding performance since the end of 2018, its P/S multiple increased sharply from 2.1x at the end of 2018 to 3.2x at the end of 2021.
  • However, due to heightened economic uncertainty weighing on the broader markets, the P/S multiple has retreated, currently standing at around 2.5x, still 18% higher than its 2018 level.
  • For more details on the company’s stock returns and comparison with its peers, see Mondelez (MDLZ) stock performance comparison.

With inflation rising and the Fed raising interest rates, Mondelez has fallen 14% this year. Can it fall more? See how far can MDLZ’s stock go comparing its decline to previous stock market crashes. here is a summary of the performance of all stocks during previous stock market crashes.

What if you were looking for a more balanced portfolio instead? Our quality portfolio and multi-strategy portfolio have consistently beaten the market since late 2016.

Return Jul 2022
MTD [1]
YTD [1]
Total [2]
Back to MDLZ 1% -6% 41%
S&P 500 return 3% -18% 75%
Trefis Multi-Strategy Portfolio seven% -18% 223%

[1] Cumulative monthly and cumulative annual as of 07/08/2022
[2] Cumulative total returns since the end of 2016

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