Stock Analysis on Net
Stock Analysis on Net

Mondelēz International Inc. (NASDAQ:MDLZ)

Common-Size Income Statement 

Mondelēz International Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Net revenues 100.00 100.00 100.00 100.00 100.00
Cost of sales -71.62 -60.88 -61.78 -64.08 -60.81
Gross profit 28.38% 39.12% 38.22% 35.92% 39.19%
Selling, general and administrative expenses -18.61 -20.41 -22.22 -23.44 -21.81
Asset impairment and exit costs -0.22 -0.89 -0.60 -0.83 -0.74
Gain on acquisition and divestitures 0.03 0.01 0.30 0.00 0.03
Amortization of intangible assets -0.37 -0.42 -0.42 -0.42 -0.47
Operating income 9.21% 17.41% 15.28% 11.22% 16.20%
Benefit plan non-service income (expense) -0.65 0.26 0.23 0.37 0.57
Interest expense -1.55 -1.39 -1.53 -1.36 -1.27
Loss on debt extinguishment and related expenses 0.00 0.00 0.00 -0.41 -0.48
Other income, net 0.82 0.90 0.67 0.43 0.19
Interest and other expense, net -0.73% -0.49% -0.86% -1.34% -1.56%
Gain on marketable securities 0.00 0.00 1.68 0.00 0.00
Earnings before income taxes 7.82% 17.18% 16.33% 10.25% 15.21%
Income tax provision -2.03 -4.03 -4.27 -2.75 -4.14
Gain (loss) on equity method investment transactions 0.44 -0.92 1.29 -0.07 2.58
Equity method investment net earnings 0.17 0.46 0.44 1.22 1.37
Net earnings 6.40% 12.69% 13.79% 8.66% 15.02%
Noncontrolling interest earnings -0.04 -0.03 -0.02 -0.03 -0.05
Net earnings attributable to Mondelēz International 6.36% 12.65% 13.77% 8.63% 14.97%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The common-size income statement reveals significant fluctuations in Mondelēz International’s profitability and expense management over the five-year period. A notable trend is the increasing cost of sales as a percentage of net revenues, culminating in a substantial increase in 2025. Simultaneously, net earnings as a percentage of net revenues demonstrate a considerable decline over the same period.

Gross Profit
Gross profit margin initially decreased from 39.19% in 2021 to 35.92% in 2022, before recovering to 38.22% in 2023 and 39.12% in 2024. However, a significant drop to 28.38% is observed in 2025, mirroring the increase in cost of sales. This suggests a weakening ability to control production costs or maintain pricing power in the later period.
Operating Expenses
Selling, general and administrative expenses consistently decreased as a percentage of net revenues from 21.81% in 2021 to 18.61% in 2025, indicating improved efficiency in these areas. Asset impairment and exit costs also generally decreased, though with a slight increase in 2024. These expense controls were not sufficient to offset the impact of rising cost of sales and declining gross profit.
Operating Income
Operating income as a percentage of net revenues followed a similar pattern to gross profit, declining from 16.20% in 2021 to 11.22% in 2022, then increasing to 17.41% in 2024 before a sharp decline to 9.21% in 2025. This highlights the direct correlation between gross profit and operating profitability.
Non-Operating Items
Interest expense remained relatively stable, fluctuating between 1.27% and 1.55% of net revenues. Other income, net, showed an increasing trend from 0.19% to 0.90% before decreasing slightly to 0.82% in 2025. Benefit plan non-service income (expense) shifted from a benefit to an expense in 2025. These items had a relatively minor impact on overall profitability compared to the changes in gross profit and operating expenses.
Net Earnings
Net earnings attributable to Mondelēz International experienced a substantial decrease from 14.97% of net revenues in 2021 to 6.36% in 2025. This decline is primarily driven by the combination of increased cost of sales, reduced gross profit margin, and the shift in benefit plan non-service income. The impact of income tax provision remained relatively consistent as a percentage of net revenues, suggesting it did not significantly contribute to the overall decline in net earnings.

Overall, the analysis indicates a deteriorating profitability trend, particularly in the most recent year. While the company demonstrates some success in controlling operating expenses, the significant increase in cost of sales and the resulting decline in gross profit are major concerns. Further investigation into the drivers of these cost increases is warranted.

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