Mondelez's Digital Transformation: Paving the Way for Growth

Strategic Initiatives for Digital Transformation

Mondelez's strategic initiatives for digital transformation include transforming business operations and supply chains, advancing ESG priorities, and appointing Filippo Catalano as Chief Information and Digital Officer to lead these efforts.

"our iconic brands, but also to our focused and strategic approach to sustainable growth. The company's approach to delivering progress is two-pronged, starting with transforming business operations, including working closely upstream and downstream in supply chains, while playing a leadership role in industry and sector partnerships focused on driving collaboration and collective action." --- (MDLZ, press release, 2024/04/15)

"Commercial initiatives are driving improved shelf space and basket incidence supported by ongoing outlet digitization." --- (KO, earning call, 2024/Q1)

"Reinforces progress towards goals and accelerated impact as global leader in mindful snackingHighlights progress toward 2050 net-zero goal, which was just validated by SBTiDemonstrates ongoing value generation through sustainability investments and initiativesShowcases innovative collaboration aiming to help advance sector-wide transformation and deliver lasting change at scale CHICAGO, April 15, 2024 (GLOBE NEWSWIRE) -- Mondelēz International, Inc. (NASDAQ:MDLZ) today released its 2023 Snacking Made Right report, showcasing the company's meaningful annual progress against our Environmental, Social and Governance (ESG) priorities." --- (MDLZ, press release, 2024/04/15)

"Prior to Nestlé, Catalano spent more than 15 years at Procter & Gamble, leading the digital transformation of key brands and corporate initiatives across geographies." --- (MDLZ, press release, 2024/07/23)

""We continued to execute against our strategic growth agenda in the second quarter with strong profitability and attractive cash flow generation."" --- (MDLZ, press release, 2024/07/30)

Operational Efficiency and Productivity Gains

Mondelez's operational efficiency and productivity gains have been driven by higher net pricing, lower administrative expenses, and reduced manufacturing costs. The Simplify to Grow program has also contributed to improved operating income margins, highlighting the company's successful digital transformation efforts.

"Segment operating income increased $18 million (12.9%), primarily due to higher net pricing, lower other selling, general and administrative expenses, lower remeasurement loss on net monetary position and lower manufacturing costs driven by productivity." --- (MDLZ, sec filing, 2024/Q1)

"So now you can imagine the room for improved density and efficiency. So that brings me to our transformation and how we're changing the way we run our business to better align with market demand and operate more efficiently." --- (FDX, conference, 2024/05/29)

"Last year, I described how we were working hard to return to our operations to pre pandemic efficiency levels, and we've made good progress towards that goal." --- (AMZN, event transcript, 2024/05/22)

"Our cube utilization was up in the feeder network. Our hub productivity was up, our preload productivity was up.And when you look at what that does with cost per piece, the US business was able to hold cost per piece to a 2.5% growth rate in the face of a 12% increase in compensation rate." --- (UPS, earning call, 2024/Q2)

"The increase in operating income margin was driven primarily by the favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, higher Adjusted Operating Income margin, lower divestiture-related costs and lower remeasurement loss of net monetary position, partially offset by the impact from the developed market gum business divested in 2023 and higher costs incurred for the Simplify to Grow program." --- (MDLZ, sec filing, 2024/Q1)

Future Outlook and Growth Prospects

Mondelez anticipates strong future snacks revenue growth despite volatility, with stable consumer confidence in Europe and optimism about the economic outlook. The company leverages data-driven marketing and local strategies, particularly in China, to drive growth. Key operating metrics like Organic Net Revenue and Adjusted EPS guide their long-term, profitable growth strategy.

"Our overall outlook for future snacks revenue growth remains strong; however, we anticipate ongoing volatility." --- (MDLZ, sec filing, 2024/Q1)

"In your -- sorry, in Europe, consumer confidence is stable. While volume growth has slowed, the Chocolate and Biscuit categories are holding better than the broader FMCG landscape and we're hearing increased optimism about the go-forward economic outlook." --- (MDLZ, earning call, 2024/Q1)

"So I guess as we're thinking about balance a year and just contribution to growth in the back half of the year, just give us a little bit more -- if you can give us a little bit more color on emerging markets and how we should be thinking about that." --- (MDLZ, earning call, 2024/Q1)

"Unlocking Growth and Innovating Categories through Insightful and Data-Driven Marketing Industry Insight Output: This year, Mondelēz rolled out a standalone State of Snacking: Future Trends report, which found that approximately 43% of consumers globally make the effort to buy products from companies that support causes they care about, and stories that evoke emotions forge stronger connections.Data-driving Marketing: Mondelēz China has consistently embraced a "local-first" strategy, leveraging global resources and combining them with local social media listening and other digital tools to delve deep into Chinese consumer insights." --- (MDLZ, press release, 2024/04/02)

"Financial Outlook We seek to achieve profitable, long-term growth and manage our business to attain this goal using our key operating metrics: Organic Net Revenue, Adjusted Operating Income and Adjusted EPS." --- (MDLZ, sec filing, 2024/Q1)