Mondelēz International Inc. (NASDAQ:MDLZ)

The profitability metrics exhibited fluctuating performance over the observed period. Initial values demonstrated a generally decreasing trend through the end of 2022, followed by a period of recovery and subsequent decline into 2025. A significant shift in performance is apparent beginning in the first quarter of 2024, with a marked decrease in all reported ratios.

Gross Profit Margin

The gross profit margin began at 38.54% and generally decreased to 35.92% by December 2022. A recovery occurred through September 2023, peaking at 38.22%, before declining to 28.38% by December 2025. This represents a substantial contraction in gross profitability over the latter portion of the analyzed timeframe.

Operating Profit Margin

Similar to the gross profit margin, the operating profit margin showed a decline from 15.26% in March 2022 to 11.22% in December 2022. Improvement was observed through December 2023, reaching 15.28%. However, a significant decrease is evident in the final reporting periods, falling to 9.21% by December 2025. This suggests increasing operating costs or decreasing revenue relative to cost of goods sold.

Net Profit Margin

The net profit margin followed a comparable pattern, decreasing from 14.34% to 8.63% between March 2022 and December 2022. A recovery phase extended through December 2023, reaching 13.77%. A pronounced decline then occurred, with the margin dropping to 6.36% by December 2025. This indicates a weakening ability to translate revenue into net income.

Return on Equity (ROE)

ROE mirrored the trends of the profit margins, starting at 14.89% and decreasing to 10.11% by December 2022. A rise to 17.50% was observed by December 2023, followed by a substantial decrease to 9.49% in December 2025. This suggests diminishing returns generated on shareholder equity.

Return on Assets (ROA)

ROA exhibited a similar trajectory, declining from 6.17% to 3.82% through December 2022. An increase to 6.95% was seen by December 2023, but this was followed by a significant drop to 3.43% by December 2025. This indicates a reduced ability to generate earnings from the company’s assets.

The consistent pattern of decline across all ratios in the latter periods suggests potential systemic challenges impacting the company’s profitability. The substantial decreases observed from the first quarter of 2024 through the end of 2025 warrant further investigation to determine the underlying causes and potential mitigation strategies.

The gross profit margin exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values demonstrated a gradual decline through the first three quarters of 2022, followed by a slight recovery in the fourth quarter. This pattern continued into 2023, with a peak in the third quarter before stabilizing in the fourth. A significant increase occurred in the first quarter of 2024, followed by a substantial decrease in the second quarter, and then a recovery through the end of 2024. The trend then reversed in 2025, showing a consistent downward trajectory throughout the year.

Initial Decline (Mar 31, 2022 – Sep 30, 2022)

The gross profit margin began at 38.54% and decreased to 36.34% over this period. This suggests potential pressures on input costs or pricing strategies during these quarters. While net revenues fluctuated, the consistent decline in the margin indicates these factors outweighed revenue changes.

Stabilization and Improvement (Oct 01, 2022 – Dec 31, 2023)

From December 31, 2022, through December 31, 2023, the gross profit margin demonstrated relative stability, ranging between 35.79% and 38.22%. This suggests that cost management or pricing adjustments may have offset ongoing pressures. The slight increase in the margin during this period could be attributed to improved operational efficiency or a shift in product mix.

Significant Volatility (Jan 01, 2024 – Jun 30, 2024)

The first half of 2024 witnessed substantial volatility. The margin increased sharply to 41.69% in March 2024, before falling to 40.34% in June 2024. This large swing suggests a significant, but potentially temporary, impact from factors such as promotional activities, inventory valuation changes, or one-time gains or losses.

Consistent Decline (Jul 01, 2024 – Dec 31, 2025)

The latter portion of the observed period reveals a consistent downward trend in the gross profit margin, decreasing from 38.77% in September 2024 to 28.38% by December 2025. This sustained decline warrants further investigation, as it could indicate increasing cost pressures, eroding pricing power, or a fundamental shift in the company’s business model. The magnitude of the decrease suggests these factors are having a significant and ongoing impact on profitability.

Overall, the gross profit margin experienced considerable variation throughout the analyzed timeframe. While periods of stability and improvement were observed, the pronounced decline in the final year raises concerns and necessitates a deeper understanding of the underlying drivers.

The operating profit margin exhibited considerable fluctuation throughout the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values demonstrated a relatively stable performance in the first half of 2022, followed by a decline in the latter half of the year, and then a recovery and subsequent increase into 2024. More recently, a downward trend has emerged.

Initial Period (Mar 31, 2022 – Dec 31, 2022)

The operating profit margin began at 15.26% and experienced a slight decrease to 15.12% in the subsequent quarter. A more pronounced decline was then observed, falling to 12.82% and 11.22% in the third and fourth quarters of 2022, respectively. This suggests increasing cost pressures or decreasing revenue strength during this period.

Recovery and Peak (Mar 31, 2023 – Dec 31, 2023)

A recovery commenced in early 2023, with the margin increasing to 11.99% and further to 13.02% by June 30, 2023. This upward momentum continued through the remainder of 2023, reaching 14.53% and culminating in a peak of 15.28% by December 31, 2023. This indicates successful implementation of cost control measures or improved pricing strategies.

High Performance and Subsequent Decline (Mar 31, 2024 – Dec 31, 2025)

The operating profit margin reached its highest point in the observed period at 18.61% on March 31, 2024. However, this was followed by a decrease to 17.10% and 16.40% in the subsequent two quarters. While remaining above the levels seen in 2022 and early 2023, the margin continued to decline, reaching 11.79%, 12.44%, 11.18%, and finally 9.21% by December 31, 2025. This recent downward trend warrants further investigation to identify the underlying causes, such as increased input costs, competitive pressures, or shifts in product mix.

Overall, the operating profit margin demonstrates a cyclical pattern with periods of growth and decline. The most recent data suggests a concerning trend of decreasing profitability, which may require strategic adjustments to maintain financial health.

The net profit margin exhibited considerable fluctuation throughout the observed period, spanning from March 31, 2022, to December 31, 2025. An initial downward trend is apparent in the first three quarters of 2022, followed by a partial recovery in the final quarter. The subsequent period through the first quarter of 2023 demonstrates significant volatility, culminating in a peak in March 2023 before stabilizing and then declining again towards the end of 2025.

Initial Decline (Q1-Q3 2022)

The net profit margin decreased from 14.34% in March 2022 to 10.30% in September 2022. This suggests increasing costs or pricing pressures impacting profitability during this period. A modest recovery to 8.63% occurred by December 2022, but the margin remained below the initial value.

Volatility and Peak (Q1 2023 - Q1 2024)

A substantial increase was observed in the net profit margin in March 2023, reaching 11.99%. This was followed by a period of relative stability, with margins ranging between 12.13% and 13.77% through the remainder of 2023. The margin then decreased to 11.87% in March 2024, and further to 10.97% in June 2024.

Subsequent Decline (Q2 2024 - Q4 2025)

From June 2024 onwards, a consistent downward trend is evident. The net profit margin decreased from 10.97% to 6.36% by December 2025. This represents a significant erosion of profitability over the latter portion of the analyzed timeframe. The decline appears to accelerate in the final quarter of 2025.

Overall Trend

While short-term fluctuations are present, the overall trend suggests a weakening of profitability. The net profit margin began at 14.34% in March 2022 and concluded at 6.36% in December 2025. This indicates a potential need for investigation into cost management, pricing strategies, or revenue generation to restore profitability levels.

The considerable variance in the net profit margin throughout the period warrants further investigation to determine the underlying drivers of these changes. Factors such as raw material costs, operating expenses, and competitive pressures should be considered when assessing the company’s financial performance.

The Return on Equity (ROE) for the analyzed period demonstrates considerable fluctuation, though generally remains within a range of 9.49% to 17.50%. Initial values indicate a decline throughout 2022, followed by a period of recovery and subsequent variability. A notable surge in net earnings during the first quarter of 2023 significantly impacted ROE, with subsequent quarters showing a more moderate performance before another increase towards the end of 2023.

Overall Trend

The ROE exhibited a decreasing trend from March 31, 2022 (14.89%) to December 31, 2022 (10.11%). This was followed by a recovery phase throughout 2023, peaking at 17.50% in December. The most recent period, spanning from March 2024 to December 2025, shows a generally decreasing trend, culminating in a value of 9.49% by December 31, 2025.

2022 Performance

Throughout 2022, ROE experienced a consistent decline. Starting at 14.89% in March, it decreased to 14.04% in June, 11.78% in September, and finally reached 10.11% in December. This suggests a weakening in the company’s profitability relative to shareholder equity during this period.

2023 Volatility

2023 presented a more volatile ROE profile. A substantial increase was observed in March (13.97%), driven by a significant rise in net earnings. Subsequent quarters showed moderate values, with a further increase in September (16.09%) and a peak in December (17.50%). This indicates periods of strong profitability interspersed with more typical performance.

Recent Performance (2024-2025)

The period from March 2024 to December 2025 demonstrates a downward trajectory in ROE. While values remained above 13% for the first three quarters of 2024, a notable decline is observed in the final quarter of 2025, reaching 9.49%. This suggests a recent weakening in the company’s ability to generate profits from shareholder investments.

The fluctuations in ROE appear to be closely correlated with changes in net earnings attributable to the company, as shareholder equity remained relatively stable throughout the analyzed period. The significant drop in ROE at the end of the period warrants further investigation into the underlying causes of the decreased profitability.

The Return on Assets (ROA) exhibited fluctuating performance over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Initial values demonstrated a gradual decline through 2022, followed by a period of recovery and subsequent stabilization, and a final decline at the end of the period.

Initial Decline (March 31, 2022 – December 31, 2022)

The ROA began at 6.17% in March 2022 and experienced a consistent downward trend, reaching 3.82% by December 2022. This suggests a decreasing efficiency in utilizing assets to generate profit during this timeframe. The decline occurred alongside fluctuations in both net earnings and total assets, but the decrease in ROA indicates that earnings were not keeping pace with asset levels.

Recovery and Stabilization (March 31, 2023 – September 30, 2023)

From March 2023 through September 2023, the ROA showed a notable recovery. It increased from 5.42% to 6.48%, indicating improved asset utilization and profitability. This improvement coincided with a significant increase in net earnings in March 2023, while total assets remained relatively stable. The upward trend continued, peaking at 6.95% in December 2023.

Recent Performance (December 31, 2023 – December 31, 2025)

Following the peak in December 2023, the ROA experienced a decline. It decreased to 5.53% in March 2024, and continued to fluctuate between 5.29% and 6.73% through September 2024. The final period shows a more pronounced decline, with the ROA falling to 3.43% by December 2025. This recent decrease suggests a weakening in the relationship between net earnings and total assets, potentially due to increasing asset levels without a corresponding increase in profitability.

Overall Trend

While the ROA demonstrated periods of improvement, the overall trend from the beginning to the end of the analyzed period indicates a net decrease in the efficiency of asset utilization. The initial decline, recovery, and subsequent fall suggest potential cyclical factors or changes in operational efficiency impacting profitability relative to asset investment.