Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Mondelēz International Inc., profitability ratios
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 profitability metrics demonstrate a period of fluctuation between 2021 and 2025. Initial performance indicates strong profitability, followed by a decline in 2022, a subsequent recovery in 2023, a peak in 2024, and a significant downturn in 2025. This pattern is evident across all measured ratios.
- Gross Profit Margin
- The gross profit margin experienced a decrease from 39.19% in 2021 to 35.92% in 2022. A recovery to 38.22% was observed in 2023, followed by a further increase to 39.12% in 2024. However, 2025 saw a substantial decline to 28.38%, indicating potential pressures on cost of goods sold or pricing strategies.
- Operating Profit Margin
- Similar to the gross profit margin, the operating profit margin decreased from 16.20% in 2021 to 11.22% in 2022. It then rose to 15.28% in 2023 and peaked at 17.41% in 2024. A considerable decrease to 9.21% in 2025 suggests increasing operating expenses or a weakening of core business performance.
- Net Profit Margin
- The net profit margin followed the same trend, declining from 14.97% in 2021 to 8.63% in 2022, recovering to 13.77% in 2023, and reaching 12.65% in 2024. The metric experienced a sharp drop to 6.36% in 2025, mirroring the declines observed in the gross and operating profit margins and indicating a broader impact on overall profitability.
- Return on Equity (ROE)
- ROE decreased from 15.21% in 2021 to 10.11% in 2022, then increased to 17.50% in 2023 and 17.12% in 2024. A significant decline to 9.49% in 2025 indicates a reduced ability to generate profit from shareholder investments.
- Return on Assets (ROA)
- ROA exhibited a similar pattern, decreasing from 6.41% in 2021 to 3.82% in 2022, increasing to 6.95% in 2023 and 6.73% in 2024, and then declining sharply to 3.43% in 2025. This suggests a diminishing efficiency in utilizing assets to generate earnings.
The consistent pattern of decline in 2025 across all ratios warrants further investigation to determine the underlying causes. The strong performance in 2023 and 2024 suggests a period of successful operations, but the 2025 results indicate a potential shift in the business environment or internal challenges.
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Return on Sales
Return on Investment
Gross Profit Margin
Mondelēz International Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 10,935) | 14,257) | 13,764) | 11,312) | 11,254) | |
| Net revenues | 38,537) | 36,441) | 36,016) | 31,496) | 28,720) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 28.38% | 39.12% | 38.22% | 35.92% | 39.19% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | 61.63% | 61.06% | 59.52% | 58.14% | 60.27% | |
| PepsiCo Inc. | 54.15% | 54.55% | 54.21% | 53.03% | 53.35% | |
| Philip Morris International Inc. | 67.12% | 64.81% | 63.35% | 64.10% | 68.06% | |
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).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × 10,935 ÷ 38,537 = 28.38%
2 Click competitor name to see calculations.
The gross profit margin exhibited fluctuations over the five-year period. Initially, a decline was observed, followed by a recovery and then a significant decrease.
- Gross Profit Margin Trend
- In 2021, the gross profit margin stood at 39.19%. This decreased to 35.92% in 2022, representing a contraction in profitability. A subsequent increase was noted in 2023, with the margin reaching 38.22%. The margin continued to improve slightly in 2024, rising to 39.12%. However, a substantial decline occurred in 2025, with the gross profit margin falling to 28.38%.
The gross profit itself generally increased from 2021 to 2024, aligning with the upward trend in net revenues. However, despite a further increase in net revenues in 2025, the gross profit decreased significantly, driving the substantial reduction in the gross profit margin.
- Relationship to Net Revenues
- Net revenues increased consistently from $28,720 million in 2021 to $38,537 million in 2025. The gross profit generally followed this upward trend until 2025, when it decreased to $10,935 million. This divergence between revenue growth and gross profit decline in 2025 is the primary driver of the margin compression observed in that year.
The volatility in the gross profit margin suggests potential shifts in cost of goods sold, pricing strategies, or product mix. The significant drop in 2025 warrants further investigation to determine the underlying causes and potential implications for future profitability.
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Operating Profit Margin
Mondelēz International Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 3,548) | 6,345) | 5,502) | 3,534) | 4,653) | |
| Net revenues | 38,537) | 36,441) | 36,016) | 31,496) | 28,720) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 9.21% | 17.41% | 15.28% | 11.22% | 16.20% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | 28.71% | 21.23% | 24.72% | 25.37% | 26.67% | |
| PepsiCo Inc. | 12.24% | 14.03% | 13.10% | 13.33% | 14.04% | |
| Philip Morris International Inc. | 36.64% | 35.38% | 32.85% | 38.56% | 41.32% | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 19.77% | 19.99% | 19.36% | 19.83% | 21.93% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 8.07% | 7.96% | 7.31% | 8.44% | 8.48% | |
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).
1 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 3,548 ÷ 38,537 = 9.21%
2 Click competitor name to see calculations.
The operating profit margin exhibited considerable fluctuation over the five-year period. Initial values demonstrated a decline followed by a period of growth, culminating in a significant decrease in the most recent year.
- Operating Profit Margin - Overall Trend
- The operating profit margin began at 16.20% in 2021. A substantial decrease was observed in 2022, falling to 11.22%. The margin then recovered, increasing to 15.28% in 2023 and reaching a peak of 17.41% in 2024. However, 2025 saw a sharp decline to 9.21%, representing the lowest value within the observed timeframe.
- Year-over-Year Changes
- From 2021 to 2022, the operating profit margin decreased by 5.0 percentage points. A subsequent increase of 4.06 percentage points occurred between 2022 and 2023. The largest year-over-year increase was from 2023 to 2024, with a gain of 2.13 percentage points. Conversely, the most significant decrease occurred between 2024 and 2025, with a drop of 8.2 percentage points.
- Relationship to Revenue
- Net revenues generally increased throughout the period, moving from US$28,720 million in 2021 to US$38,537 million in 2025. Despite this revenue growth, the operating profit margin did not consistently benefit, as evidenced by the decline in 2022 and, more dramatically, in 2025. This suggests that increases in the cost of goods sold and/or operating expenses may have outpaced revenue growth in those years.
- Potential Implications
- The volatility in the operating profit margin warrants further investigation. The substantial decrease in 2025, despite increased net revenues, could indicate rising costs, pricing pressures, or inefficiencies in operations. The peak margin in 2024 suggests successful cost management or pricing strategies during that period, but the sustainability of these factors appears questionable given the subsequent decline.
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Net Profit Margin
Mondelēz International Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to Mondelēz International | 2,451) | 4,611) | 4,959) | 2,717) | 4,300) | |
| Net revenues | 38,537) | 36,441) | 36,016) | 31,496) | 28,720) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 6.36% | 12.65% | 13.77% | 8.63% | 14.97% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Coca-Cola Co. | 27.34% | 22.59% | 23.42% | 22.19% | 25.28% | |
| PepsiCo Inc. | 8.77% | 10.43% | 9.92% | 10.31% | 9.59% | |
| Philip Morris International Inc. | 27.92% | 18.63% | 22.21% | 28.49% | 29.00% | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 15.90% | 14.95% | 15.62% | 15.68% | 17.28% | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 6.10% | 5.69% | 5.47% | 6.11% | 6.21% | |
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).
1 2025 Calculation
Net profit margin = 100 × Net earnings attributable to Mondelēz International ÷ Net revenues
= 100 × 2,451 ÷ 38,537 = 6.36%
2 Click competitor name to see calculations.
The net profit margin exhibited considerable fluctuation over the five-year period. Initial values demonstrated a strong profitability position, followed by a significant decline, a subsequent recovery, and then a renewed decrease.
- Overall Trend
- The net profit margin began at 14.97% in 2021, representing a robust level of profitability. A substantial decrease was observed in 2022, falling to 8.63%. The margin then experienced a recovery in 2023, increasing to 13.77%, and remained relatively stable in 2024 at 12.65%. However, 2025 witnessed a sharp decline to 6.36%, indicating a significant reduction in profitability.
- Year-over-Year Changes
- The largest year-over-year decrease occurred between 2021 and 2022, with a reduction of 6.34 percentage points. The most substantial increase was observed between 2022 and 2023, with a gain of 5.14 percentage points. The decline from 2024 to 2025 was also considerable, representing a decrease of 6.29 percentage points.
- Relationship to Net Revenues
- Net revenues consistently increased throughout the period, moving from US$28,720 million in 2021 to US$38,537 million in 2025. Despite this revenue growth, the net profit margin did not consistently benefit, as evidenced by the declines in 2022 and 2025. This suggests that increases in the cost of goods sold and/or operating expenses may have outpaced revenue growth during those periods.
The volatility in the net profit margin suggests potential underlying issues affecting cost control or pricing strategies. Further investigation into the components of net earnings and net revenues would be necessary to determine the specific drivers of these fluctuations.
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Return on Equity (ROE)
Mondelēz International Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to Mondelēz International | 2,451) | 4,611) | 4,959) | 2,717) | 4,300) | |
| Total Mondelēz International shareholders’ equity | 25,838) | 26,932) | 28,332) | 26,883) | 28,269) | |
| Profitability Ratio | ||||||
| ROE1 | 9.49% | 17.12% | 17.50% | 10.11% | 15.21% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Coca-Cola Co. | 40.74% | 42.77% | 41.30% | 39.59% | 42.48% | |
| PepsiCo Inc. | 40.38% | 53.09% | 49.04% | 51.96% | 47.48% | |
| Philip Morris International Inc. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 51.37% | 54.89% | 52.90% | 51.06% | 53.84% | |
| ROE, Industry | ||||||
| Consumer Staples | 32.41% | 32.18% | 30.71% | 32.10% | 31.40% | |
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).
1 2025 Calculation
ROE = 100 × Net earnings attributable to Mondelēz International ÷ Total Mondelēz International shareholders’ equity
= 100 × 2,451 ÷ 25,838 = 9.49%
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited considerable fluctuation over the five-year period. Initial values demonstrated a decline followed by a recovery, and then a subsequent decrease. Net earnings attributable to Mondelēz International and total shareholders’ equity both influenced these changes.
- ROE Trend
- ROE began at 15.21% in 2021, decreased significantly to 10.11% in 2022, then increased substantially to 17.50% in 2023. A slight decrease to 17.12% was observed in 2024, followed by a marked decline to 9.49% in 2025. This indicates a volatile performance in generating profits from shareholder investments.
- Net Earnings Impact
- Net earnings attributable to Mondelēz International decreased from US$4,300 million in 2021 to US$2,717 million in 2022, contributing to the initial drop in ROE. The subsequent increase in net earnings to US$4,959 million in 2023 largely drove the ROE recovery. Net earnings remained relatively stable in 2024 at US$4,611 million before decreasing to US$2,451 million in 2025, coinciding with the final ROE decline.
- Shareholders’ Equity Impact
- Total shareholders’ equity decreased from US$28,269 million in 2021 to US$26,883 million in 2022. It then increased to US$28,332 million in 2023, and decreased again to US$26,932 million in 2024. A further decrease to US$25,838 million was observed in 2025. These fluctuations in equity moderated the impact of net earnings changes on ROE; for example, the decrease in equity from 2021 to 2022 partially offset the impact of declining net income on ROE.
The most substantial shifts in ROE appear directly correlated with changes in net earnings. While shareholders’ equity also fluctuated, its impact was less pronounced than that of net earnings. The decline in ROE in 2025, despite a relatively moderate decrease in equity, suggests a significant reduction in profitability relative to shareholder investment.
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Return on Assets (ROA)
Mondelēz International Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to Mondelēz International | 2,451) | 4,611) | 4,959) | 2,717) | 4,300) | |
| Total assets | 71,487) | 68,497) | 71,391) | 71,161) | 67,092) | |
| Profitability Ratio | ||||||
| ROA1 | 3.43% | 6.73% | 6.95% | 3.82% | 6.41% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Coca-Cola Co. | 12.50% | 10.57% | 10.97% | 10.29% | 10.36% | |
| PepsiCo Inc. | 7.67% | 9.63% | 9.03% | 9.67% | 8.25% | |
| Philip Morris International Inc. | 16.40% | 11.42% | 11.96% | 14.67% | 22.06% | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 9.96% | 9.65% | 9.72% | 9.51% | 10.44% | |
| ROA, Industry | ||||||
| Consumer Staples | 9.47% | 8.89% | 8.28% | 8.95% | 8.75% | |
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).
1 2025 Calculation
ROA = 100 × Net earnings attributable to Mondelēz International ÷ Total assets
= 100 × 2,451 ÷ 71,487 = 3.43%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited fluctuating performance over the five-year period. Initial values demonstrated a decline followed by recovery and subsequent decrease again. Net earnings attributable to Mondelēz International and total assets both influenced the observed ROA trends.
- Overall Trend
- The ROA began at 6.41% in 2021, decreased to 3.82% in 2022, then increased to a peak of 6.95% in 2023. A slight decrease to 6.73% occurred in 2024, followed by a more substantial decline to 3.43% in 2025.
- Net Earnings Impact
- Net earnings attributable to Mondelēz International decreased significantly from 2021 to 2022, coinciding with the initial drop in ROA. The subsequent increase in net earnings from 2022 to 2023 contributed to the ROA recovery. However, a decrease in net earnings in 2025 corresponded with the final decline in ROA.
- Asset Base Influence
- Total assets increased from 2021 to 2022, which, in conjunction with the decrease in net earnings, likely exacerbated the ROA decline. While assets remained relatively stable between 2022 and 2023, the increase in net earnings drove the ROA improvement. A decrease in total assets in 2024 was offset by a slight decrease in net earnings, resulting in a minimal ROA change. The increase in total assets in 2025, coupled with a substantial decrease in net earnings, resulted in the largest ROA decline over the period.
The fluctuations in ROA suggest a sensitivity to both profitability and asset management. The company’s ability to generate earnings from its asset base varied considerably throughout the observed period, with the most recent year showing a notable decrease in efficiency.
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