Mondelēz International Inc. (NASDAQ:MDLZ)

The analysis reveals several notable trends in the profitability and efficiency ratios over the periods observed.

Gross profit margin

Beginning at 39.3% in March 2021, the gross profit margin exhibited a consistent decline through December 2022, reaching a low of 35.79%. Subsequently, the margin improved from early 2023, peaking at 41.69% in December 2023. Following this peak, it experienced volatility, ending the period at 32.74% in March 2025, which represents a significant decrease compared to prior peaks.

Operating profit margin

The operating profit margin showed a gradual increase from 14.5% in March 2021 to a high of 18.61% in December 2023. However, after this peak, a declining trend emerged, with the margin reducing to 11.79% by March 2025, indicating diminishing operational efficiency or increased costs in recent quarters.

Net profit margin

Net profit margin progressed positively from 13.37% in March 2021 to a peak around 15.7% in December 2021. It then followed a downward trajectory through to June 2023, dropping to 8.63%. A moderate recovery ensued, reaching 13.77% in December 2023, but was followed by another decline resulting in 9.88% by March 2025. This pattern suggests fluctuations in bottom-line profitability possibly driven by varying expenses, taxes, or non-operating factors over time.

Return on equity (ROE)

ROE increased steadily from 12.89% in March 2021, peaking at 17.5% in December 2023. After this peak, it dwindled, ending at 13.97% in March 2025. The overall trend up to late 2023 signals strong shareholder returns fueled by profitable operations, with the later decline potentially reflecting pressures on net income or equity base adjustments.

Return on assets (ROA)

The ROA ratio demonstrated growth from 5.24% in March 2021 until reaching a high of 6.95% in December 2023. Post-peak, the ratio fell to approximately 5.22% by March 2025. This indicates that asset utilization efficiency improved substantially up to late 2023 before weakening somewhat in subsequent periods.

Overall, the data suggests an improvement in profitability and efficiency metrics leading up to the end of 2023, followed by a period of decline across all major ratios through early 2025. The fluctuations could be connected to changing cost structures, market conditions, or other external factors impacting operational performance and net earnings.

Gross profit

The gross profit exhibits a fluctuating pattern over the analyzed quarterly periods. Starting from approximately 2,451 million US dollars in the first quarter of 2020, it shows several periods of increase and decline. Notably, there are peaks observed in the first quarter of 2024 with a gross profit of 4,750 million, which represents a significant rise compared to previous quarters. However, this is followed by a steep decline to 2,797 million in the following quarter. The subsequent quarters continue to show volatility, without establishing a clear upward or downward trend by the end of the period in the first quarter of 2025, where the gross profit is at 2,430 million US dollars.

Net revenues

Net revenues display a more consistent upward trend over the examined quarters. Starting from 6,707 million US dollars in the first quarter of 2020, net revenues generally increase throughout the period, reaching around 9,313 million by the first quarter of 2025. Despite some short-term fluctuations, the growth in net revenues appears stable, reflecting positive sales performance. The highest revenue is observed at 9,604 million in the fourth quarter of 2024, followed by a slight decline in the next quarter.

Gross profit margin

The gross profit margin shows a downward trend over the timeframe analyzed. Initially, margins are not available for early 2020 quarters but start at about 39.3% in March 2021. After that, the margin decreases steadily from the end of 2021 onwards, falling from near 39% to a low point of 32.74% in March 2025. There is a brief increase to over 41% in the first quarter of 2024, coinciding with the sharp rise in gross profit during the same period, but this spike is short-lived. Overall, the declining margin suggests increasing cost pressures or changing revenue compositions affecting profitability relative to sales.

Summary insights

While net revenues show a clear growth trajectory, gross profit and gross profit margins are more volatile and generally declining towards the end of the period. This divergence suggests that while sales are increasing, the cost of goods sold is rising at a potentially faster rate or pricing power is being eroded, leading to squeezed margins. The volatility seen in gross profit, particularly the sharp spike and subsequent decline in early 2024, highlights periods of operational or market instability. Management attention to cost management and margin improvement may be warranted given these trends.

The operating income of the company demonstrates significant volatility across the observed quarters, with notable peaks and troughs. Initially, there was a decline from 856 million in March 2020 to 713 million in June 2020, followed by a recovery to 1,149 million in December 2020. The operating income again fluctuates through 2021 and 2022, with another substantial rise to 1,505 million in March 2023 and 2,727 million in March 2024, before a sharp decrease to 680 million by March 2025.

Net revenues show a relatively more consistent upward trend over the period. Starting at 6,707 million in March 2020, net revenues marginally declined by mid-2020 but then increased steadily, reaching a high of 9,604 million in December 2024. There is a mild decline at the end of the series with net revenues at 9,313 million in March 2025.

The operating profit margin, which is available from December 2020 onwards, exhibits some variability but generally maintains a moderate range. It starts at 14.5% and gradually improves to a peak of 18.61% in March 2024, indicating enhanced profitability efficiency during this period. However, there is a decrease to 11.79% in March 2025, signifying a reduction in operational efficiency relative to revenue.

Operating Income

Highly volatile with significant peaks in March 2023 and March 2024; notable declines in mid-2020, late 2022, and early 2025.

Net Revenues

Overall upward trend with minor fluctuations; steady growth from mid-2020 through late 2024, followed by a slight dip in early 2025.

Operating Profit Margin

Range between approximately 11% and 18.6%; gradual increase to a peak in early 2024, then a sharp decline at the start of 2025.

In summary, while net revenues have generally increased over the period, operating income and profit margins have been more inconsistent, with a pronounced decline in profitability apparent at the end of the period under review. This suggests potential challenges in cost management or other operational factors impacting earnings despite stable revenue levels.

The data reveals variability in both net earnings and net revenues over the examined periods, alongside fluctuating net profit margins.

Net Earnings

Net earnings display a generally cyclical pattern with notable peaks in the first quarters of 2023 and 2025, reaching 2,081 million USD and 1,745 million USD, respectively. The values in some quarters, particularly mid-year ones, tend to be lower, with the smallest reported earnings occurring in the second quarter of 2024 at 601 million USD. This pattern indicates substantial volatility quarter over quarter, with periodic surges potentially linked to seasonal or operational factors.

Net Revenues

Net revenues exhibit an overall upward trajectory, starting from 6,707 million USD in the first quarter of 2020 to around 9,313 million USD by the first quarter of 2025. Although there is some fluctuation within quarters, revenues generally increase year-over-year, suggesting growth in sales or pricing power. Notably, some quarters, such as the third quarter of 2024, show a dip to 8,343 million USD, indicating possible challenges or fluctuations in demand.

Net Profit Margin

Net profit margin percentages are only available from March 31, 2021, onwards, beginning at 13.37% and peaking at 15.7% in December 2021. Subsequently, there is a downward trend with the margin falling to a low of 8.63% by the fourth quarter of 2022. Thereafter, margins recover slightly but remain fluctuating between approximately 9.88% and 13.77%, suggesting variable profitability possibly affected by changing cost structures or pricing strategies.

Relationship Between Metrics

Despite rising revenues, net profit margins do not consistently improve, indicating that increased sales do not directly translate into higher profitability. The significant jumps in net earnings during certain quarters contrast with less dramatic margin shifts, suggesting these earnings spikes may be driven by non-recurring factors or efficiency gains. The volatility in net earnings compared to steadier revenue growth highlights potential variability in expenses or other operational factors influencing net income.

The data indicates fluctuating trends in the net earnings attributable to Mondelēz International over the examined periods. Beginning in March 2020, net earnings showed variability with notable peaks in March 2023 and December 2024, at 2081 million and 1745 million US dollars, respectively. However, several quarters, such as June 2022 and March 2025, exhibited relatively lower earnings, declining to values as low as 532 million and 402 million US dollars. This pattern suggests a cyclical nature or external factors influencing earnings on a quarterly basis.

Total shareholders' equity showed a generally stable yet slightly declining trend over the period. The initial value of 25,674 million US dollars in March 2020 increased moderately, reaching a high of approximately 28,647 million in June 2023. Subsequently, the equity value decreased, ending at 25,785 million in March 2025. This variation indicates some fluctuation in the company's retained earnings or equity adjustments affecting overall shareholder equity.

The return on equity (ROE) percentages, calculated for selected quarters, demonstrate an overall positive trend with periodic decreases. Starting from about 12.89% in December 2020, ROE gradually increased to a peak of 17.50% in December 2023, reflecting efficient use of shareholders’ equity to generate net income. However, the subsequent quarters showed some decline in ROE, finishing at 13.97% by March 2025. This tapering may reflect challenges in maintaining profitability or shifts in equity structure.

When correlating net earnings with ROE, it is apparent that higher net earnings periods generally align with increased ROE figures, suggesting consistent leverage of equity to amplify returns. Conversely, quarters with diminished net earnings correspond to lower ROE, indicative of reduced profitability efficiency. Meanwhile, the relative stability in shareholders' equity alongside these fluctuations suggests that earnings volatility primarily drives changes in return metrics.

In conclusion, the financial data displays a pattern of cyclical earnings with significant peaks and troughs, a moderately stable shareholders' equity base with a slight downward drift toward the end of the period, and a return on equity that mirrors earnings performance, peaking in late 2023 before showing signs of decline. These patterns underscore the importance of managing earnings volatility and maintaining equity efficiency to sustain robust shareholder returns.

Net Earnings Attributable to Mondelēz International

The net earnings exhibit considerable variability across the periods from March 2020 to March 2025. Initial values fluctuate within the range of approximately 500 to 1,200 million US dollars, with notable peaks such as 1,258 million in September 2021 and a significant high of 2,081 million in March 2023. Following this peak, earnings display a downward trend with subsequent oscillations, culminating in a low of 402 million in March 2025. The pattern reflects inconsistency in profitability, with pronounced spikes and troughs rather than steady growth or decline.

Total Assets

Total assets maintain relative stability over the examined period, generally fluctuating between about 63,000 and 78,000 million US dollars. A moderate increasing trend is observed in the early periods, with total assets rising from 63,598 million in March 2020 to a peak near 77,624 million in June 2024. However, slight declines follow that peak, resulting in a value around 68,927 million by March 2025. Thus, the asset base appears to have expanded modestly over the longer term, though with some recent contraction.

Return on Assets (ROA)

The return on assets percentage is available from December 2020 onward and shows an overall moderate positive performance with some fluctuations. ROA increased progressively from 5.24% in December 2020 to a peak of 6.95% by December 2023, indicating improving efficiency in utilizing assets to generate earnings. However, a decline follows in early 2024, dropping to 5.22% by March 2025. This pattern suggests that while asset utilization effectiveness improved for a significant timeframe, this performance faced some challenges near the end of the period analyzed.