How Investors May Respond To Mondelez (MDLZ) Higher Sales But Lower Profitability in Q3 Results

• Mondelez International recently reported its third-quarter 2025 results, showing higher sales of US$9.74 billion but a decrease in net income to US$743 million compared to the prior year, alongside updated financial guidance for organic net revenue growth of over 4%.
• An important insight is that while company-wide revenues continue to rise, pressure from higher costs is impacting profitability, as reflected by the dip in earnings per share for both the quarter and year-to-date periods.
• We'll explore how Mondelez's updated full-year growth outlook, despite margin pressures, may influence its investment story going forward.

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Mondelez International Investment Narrative Recap

Holding Mondelez International shares centers on trust in its ability to drive top-line growth through brand strength and global expansion, even as short-term earnings face pressure from rising input costs like cocoa. The latest quarterly results reinforce higher revenue as the central catalyst; however, the continued margin squeeze due to cost inflation remains the biggest risk to the business and does not appear materially alleviated by recent developments.

Among recent announcements, Mondelez’s update of its 2025 guidance for organic net revenue growth above 4% stands out in direct response to the revenue momentum seen in the latest quarter. This underscores the company’s reliance on pricing strategies and international scale to offset margin headwinds, signaling that revenue growth, rather than immediate profit recovery, is likely the key focus for management and investors right now.

Yet at the same time, it’s important for investors to watch for further impacts from stubbornly high cocoa prices and cost inflation that could still pressure Mondelez’s bottom line...

Read the full narrative on Mondelez International (it's free!)

Mondelez International's outlook anticipates $42.7 billion in revenue and $4.7 billion in earnings by 2028. This reflects a 4.8% annual revenue growth rate and a $1.1 billion increase in earnings from the current $3.6 billion.

Uncover how Mondelez International's forecasts yield a $69.61 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value forecasts for Mondelez International range widely from US$69.61 to US$114.72 per share. While opinions vary, the ongoing effect of elevated input costs remains front of mind for many and could shape near-term sentiment, take a closer look at the multiple viewpoints before deciding what matters most to you.

Explore 3 other fair value estimates on Mondelez International - why the stock might be worth over 2x more than the current price!

Build Your Own Mondelez International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Mondelez International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Mondelez International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Mondelez International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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