AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 18/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Established brands and disclosed leading category positions are supported by realized pricing and favorable recent volume/mix across most regions and categories. This establishes a brand advantage, with issuer-source and competitor-comparison limitations.
durability · 2/4 · Reported five-year emerging-market growth and the established brand portfolio support persistence, but 2025 volume weakness and subsequent European elasticity constrain confidence in durable protection.
customer dependency · 1/4 · Realized demand losses after price increases demonstrate limited customer dependence. Brand preference supports demand, but the passages do not establish meaningful switching friction or indispensable products.
erosion resilience · 2/4 · Recent favorable volume/mix across most regions and categories offsets some concern from 2025 weakness. European demand losses, the negative market-share overlay and continuing underlying margin pressure show only mixed resilience.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Second-quarter 2026 higher net pricing contributed $137 million to the constant-currency adjusted operating income bridge, exceeding the $56 million adverse input-cost contribution. However, prior pricing adversely affected demand, so realized pricing power is meaningful but constrained.
retention · 2/4 · Indirect demand evidence is mixed: 2025 organic volume fell 2.9%, while second-quarter 2026 volume/mix improved across most regions and categories and European chocolate declines moderated. Management also reported stable North American brand penetration; this is not a verified retention rate.
margin resilience · 1/4 · Adjusted gross profit and operating income declined materially in 2025. Second-quarter 2026 adjusted operating margin fell from 14.3% to 13.1% despite pricing and productivity benefits. The GAAP margin rebound primarily reflected derivative movements.
contractual freedom · 2/4 · Implemented price increases demonstrate practical ability to change prices. Demand elasticity constrains its economic exercise, while contractual restrictions, retailer terms and repricing schedules are undisclosed; unrestricted contractual freedom is not established.
Predictability100
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 4.86
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 0.86
Financial strength—
Missing required inputs: netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 20.64
- interestCoverageGrade
- 44.76
- currentRatioGrade
- 0.00
- Debt / FCF (x)
- 6.55
- Interest coverage (x)
- 5.92
- Current ratio (x)
- 0.59
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- -2.07
- 3-year average SBC / revenue (%)
- 0.37
- cashConversionGrade
- 86.18
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · 2025 operating cash flow of $4.514 billion funded $1.279 billion of capital expenditures, leaving $3.235 billion of free cash flow. Counterweights include $2.3 billion of repurchases and higher year-end borrowings. First-half 2026 operating cash flow declined; dividends alone nearly consumed it before capital spending and repurchases, which used cash and commercial paper. Outcomes support mixed discipline rather than proven exceptional allocation.
incentive alignment · 3/4 · PSUs constitute 75% of annual equity grant value and require certified performance thresholds. Actual 2025 incentive calculations included financial outcomes and a negative market-share overlay, producing a 91% corporate rating. These are disclosed operating arrangements and outcomes, not proposed awards. Adjusted metrics and EPS targets incorporating repurchases limit the assessment.
execution · 2/4 · Operating evidence shows cash generation, manufacturing productivity and recent volume/mix improvement, alongside 2025 volume and underlying profit declines and another adjusted operating income decline in the second quarter of 2026. Execution is assessed from these indirect operating outcomes; future modernization benefits are not credited as achieved.
governance · 3/4 · Annual majority director elections, shareholder special-meeting rights and entirely independent board committees provide strong disclosed governance safeguards. The combined Chair and CEO role limits separation of leadership; these structures do not prove exceptional oversight effectiveness.
Evidence
We hold the #1 global position in biscuits and with a strong #2 position in chocolate, with meaningful headroom across cakes and pastries and snack bars.
Chair and CEO letter: global category positions · Filed 03/04/2026
8 Table of Contents Note 4. Goodwill and Intangible Assets Goodwill Changes in goodwill consisted of: Latin America AMEA Europe North America Total (in millions) Balance at December 31, 2025 $ 1,500 $ 3,128 $ 8,884 $ 10,824 $ 24,336 Currency 53 24 (211) (22) (156) Balance at June 30, 2026 $ 1,553 $ 3,152 $ 8,673 $ 10,802 $ 24,180 Intangible Assets Intangible assets consisted of the following: As of June 30, 2026 As of December 31, 2025 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount (in millions) Indefinite-life intangible assets $ 18,572 $ — $ 18,572 $ 18,647 $ — $ 18,647 Definite-life intangible assets 3,470 (2,533) 937 3,477 (2,496) 981 Total $ 22,042 $ (2,533) $ 19,509 $ 22,124 $ (2,496) $ 19,628 Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the global LU biscuit business of Groupe Danone S.A., Cadbury Limited and Clif Bar.
Note 4: acquired brand names and intangible assets · Filed 28/07/2026
Adjusted Operating Income (1) decreased $61 million (4.8%) to $1,222 million and Adjusted Operating Income on a constant currency basis (1) decreased $78 million (6.1%) to $1,205 million due to the following: For the Three Months Ended June 30, 2026 2025 $ Change % Change (in millions) Operating Income $ 1,946 $ 1,172 $ 774 66.0 % Restructuring charges 9 (4) 13 Mark-to-market (gains)/losses from derivatives (827) 93 (920) Acquisition-related items 13 (21) 34 Divestiture-related items — (3) 3 Incremental costs due to geopolitical conflicts 11 1 10 ERP System Implementation costs 59 37 22 Remeasurement of net monetary position 11 8 3 Adjusted Operating Income (1) $ 1,222 $ 1,283 $ (61) (4.8) % Currency-related items (17) — (17) Adjusted Operating Income (constant currency) (1) $ 1,205 $ 1,283 $ (78) (6.1) % Key Drivers of Adjusted Operating Income (constant currency) $ Change Higher net pricing $ 137 Higher input costs (56) Favorable volume/mix 11 Higher selling, general and administrative expenses (182) Lower amortization of intangible assets 13 Higher fixed asset impairment charges (1) Total change in Adjusted Operating Income (constant currency) (1) $ (78) (1)Refer to the Non-GAAP Financial Measures section for additional information.
Second-quarter 2026 adjusted operating income reconciliation and pricing bridge · Filed 28/07/2026
Overall, favorable volume/mix was driven by growth across most regions and categories, partially offset by Europe where chocolate volume declines are moderating following elevated pricing actions taken in the prior year.
Second-quarter 2026 volume/mix discussion · Filed 28/07/2026
Approximately 40% of our revenue comes from these markets, where we have delivered double-digit organic net revenue growth over the past five years.
Chair and CEO letter: emerging-market revenue contribution and historical growth · Filed 03/04/2026
While we have responded to elevated raw material costs with price increases for certain of our products, the elasticity impacts from those pricing increases have adversely impacted consumer demand, particularly in Europe.
Business trends: realized demand effects from price increases · Filed 28/07/2026
Performance Measures(1) Threshold(2) Below Target Target(3) Maximum Actual Payout Percentage Payout Percentage 0% 50% 100% 200% Organic Volume Growth (Weighted 15%) 88% (6.9)% (5.4)% (1.6)% 0.9% Organic Net Revenue Growth (Weighted 15%) 77% 1.8% 3.3% 7.0% 9.5% Adjusted Gross Profit Growth (Weighted 35%) 86% (17.5)% (15.0)% (8.7)% 0.0% Adjusted Operating Income Growth (Weighted 15%) 95% (24.8)% (21.8)% (14.3)% 0.0% Free Cash Flow (Weighted 20%) 157% $1,966 $2,456 $2,946 $3,523 Preliminary Corporate Financial Rating 101% +/- Market Share Overlay(4) (10)pp Market Share Payout Range(4) (Gain/loss in our core categories) (30)pp 0pp +30pp Final Corporate Rating 91% Actual (2.9)% Actual 4.3% Actual (11.4)% Actual (15.5)% Actual $3,235 (10)pp (1)See definitions in Annex A.
Compensation discussion: 2025 actual financial performance and market-share overlay · Filed 03/04/2026
Adjusted Operating Income margin decreased from 14.3% for the second quarter of 2025 to 13.1% for the second quarter of 2026.
Second-quarter 2026 adjusted operating income margin · Filed 28/07/2026
The decrease was driven primarily by higher raw material costs, higher other selling, general and administrative expenses and higher advertising and consumer promotion costs, partially offset by higher net pricing and lower manufacturing costs driven by productivity.
Second-quarter 2026 underlying margin drivers · Filed 28/07/2026
If our mitigation activities are not effective, if we are unable to price to cover increased costs (including if we are delayed in our ability to raise prices or unable to raise the prices of our products enough to keep up with the rate of inflation), if we must reduce our prices, if increased prices affect demand for our products (including if consumers forego purchasing certain of our products or switch to “private label” or lower-priced product offerings), if we change the recipes of some of our product offerings, or if we are limited by supply or distribution constraints, our financial condition, results of operations, cash flows, reputation and stock price can be materially adversely affected.
Risk factors: pricing constraints, substitution and supply limitations · Filed 04/02/2026
As of December 31, Mondelēz International S&P 500 Performance Peer Group 2020 $ 100.00 $ 100.00 $ 100.00 2021 115.87 128.71 114.42 2022 119.26 105.40 113.05 2023 132.58 133.10 111.02 2024 112.30 166.40 112.02 2025 104.41 196.16 115.27 The Mondelēz International performance peer group consists of the following companies considered our market competitors or that have been selected on the basis of industry, global focus or industry leadership: Campbell Soup Company, The Coca-Cola Company, Colgate-Palmolive Company, Danone S.A., General Mills, Inc., The Hershey Company, The Kraft Heinz Company, Nestlé S.A., PepsiCo, Inc., The Procter & Gamble Company and Unilever PLC.
Stock performance: mixed market-competitor and industry peer group · Filed 04/02/2026
dollars) (Unaudited) For the Twelve Months Ended December 31, 2025 Net Cash Provided by Operating Activities (GAAP) $4,514 Capital Expenditures (1,279) Free Cash Flow (Non‑GAAP) $3,235
Annex A: 2025 operating cash flow, capital expenditures and free cash flow · Filed 03/04/2026
During the year ended December 31, 2025, we repurchased $2.3 billion, and as of December 31, 2025, we had approximately $6.7 billion in share repurchase authorization remaining.
2025 actual share repurchases · Filed 04/02/2026
dollars, except share data) 2025 2024 ASSETS Cash and cash equivalents $ 2,125 $ 1,351 Trade receivables, less allowance ($35 and $37, respectively) 3,903 3,874 Other receivables, less allowance ($35 and $37, respectively) 955 937 Inventories 4,419 3,827 Other current assets 1,549 3,253 Total current assets 12,951 13,242 Property, plant and equipment, net 10,667 9,481 Operating lease right-of-use assets 731 767 Goodwill 24,336 23,017 Intangible assets, net 19,628 18,848 Prepaid pension assets 1,220 987 Deferred income taxes 336 333 Equity method investments 667 635 Other assets 951 1,187 TOTAL ASSETS $ 71,487 $ 68,497 LIABILITIES Short-term borrowings $ 2,688 $ 71 Current portion of long-term debt 1,295 2,014 Accounts payable 10,139 9,433 Accrued marketing 2,787 2,558 Accrued employment costs 1,000 928 Other current liabilities 3,955 4,545 Total current liabilities 21,864 19,549 Long-term debt 17,222 15,664 Long-term operating lease liabilities 599 623 Deferred income taxes 3,530 3,425 Accrued pension costs 422 391 Accrued postretirement health care costs 74 98 Other liabilities 1,885 1,789 TOTAL LIABILITIES 45,596 41,539 Commitments and Contingencies (Note 11) EQUITY Common Stock, no par value (5,000,000,000 shares authorized, 1,996,537,778 shares issued) — — Additional paid-in capital 32,322 32,276 Retained earnings 36,413 36,476 Accumulated other comprehensive losses (11,364) (12,471) Treasury stock, at cost (714,961,364 and 678,708,640 shares, respectively) (31,533) (29,349) Total Mondelēz International Shareholders’ Equity 25,838 26,932 Noncontrolling interest 53 26 TOTAL EQUITY 25,891 26,958 TOTAL LIABILITIES AND EQUITY $ 71,487 $ 68,497 See accompanying notes to the consolidated financial statements.
Consolidated balance sheets: borrowing and equity balances · Filed 04/02/2026
Our cash flow activity is noted below: For the Six Months Ended June 30, 2026 2025 (in millions) Net cash provided by/(used in): Operating activities $ 1,322 $ 1,400 Investing activities (716) (591) Financing activities (1,039) (862) Net Cash Provided by Operating Activities The reduction in net cash provided by operating activities was primarily due to lower cash-basis net earnings.
Liquidity: first-half 2026 cash flows · Filed 28/07/2026
Property, Plant and Equipment Property, plant and equipment consisted of the following: As of June 30, 2026 As of December 31, 2025 (in millions) Land and land improvements $ 437 $ 404 Buildings and building improvements 4,007 3,963 Machinery and equipment 14,975 14,610 Construction in progress 917 1,085 20,336 20,062 Accumulated depreciation (9,687) (9,395) Property, plant and equipment, net $ 10,649 $ 10,667 For the six months ended June 30, 2026, capital expenditures of $654 million excluded $346 million of accrued capital expenditures remaining unpaid at June 30, 2026 and included payment for the $481 million of capital expenditures that were accrued and unpaid at December 31, 2025.
Property, plant and equipment: first-half 2026 capital expenditures · Filed 28/07/2026
Dividends We paid dividends of $1,287 million in the first six months of 2026 and $1,233 million in the first six months of 2025.
Liquidity: dividends paid in the first half · Filed 28/07/2026
During the six months ended June 30, 2026, we repurchased approximately 3 million shares of Common Stock at an average cost of $60.69 per share, or an aggregate cost of approximately $210 million, all of which was paid during the period except for approximately $18 million settled in July 2026.
Note 9: actual first-half 2026 repurchases · Filed 28/07/2026
All share repurchases were funded through available cash and commercial paper issuances.
Note 9: repurchase financing sources · Filed 28/07/2026
Each NEO’s target number of PSUs is based on 75% of the total annual equity grant value.
Compensation discussion: performance share units as a proportion of annual equity grants · Filed 03/04/2026
At the end of the three-year performance cycle, the grants will only vest if the PCC certifies that company results meet or exceed the predetermined performance thresholds.
Compensation discussion: performance certification and vesting requirements · Filed 03/04/2026
Accordingly, the EPS metric we use in our LTI program, like our external targets, accounts for our capital allocation plans for the year, including expected share repurchases.
Compensation governance: expected repurchases incorporated in EPS targets · Filed 03/04/2026
In addition to the governance practices discussed above, all of our directors are elected annually by majority vote, directors and committees engage in an annual self-assessment process, shareholders have the right to call special meetings at which they can nominate director candidates or propose other business, and shareholders can communicate directly with the Board in addition to the Independent Lead Director.
Governance: annual majority elections and shareholder rights · Filed 03/04/2026
Every Board committee is comprised entirely of, and is chaired by, independent directors, and each committee has a clearly defined area of oversight regarding key risks and Company functions.
Governance: independent committee membership and chairs · Filed 03/04/2026
MONDELĒZ INTERNATIONAL, INC. By: /s/ LUCA ZARAMELLA Luca Zaramella Executive Vice President, Chief Operating Officer and Chief Financial Officer (Duly Authorized Officer) Date: February 4, 2026 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated: Signature Title Date /s/ DIRK VAN DE PUT Director, Chair and Chief Executive Officer February 4, 2026 (Dirk Van de Put) /s/ LUCA ZARAMELLA Executive Vice President, Chief Operating Officer and Chief Financial Officer February 4, 2026 (Luca Zaramella) /s/ BRIAN STEVENS Senior Vice President, Corporate Controller and Chief Accounting Officer February 4, 2026 (Brian Stevens) /s/ ERTHARIN COUSIN Director February 4, 2026 (Ertharin Cousin) /s/ CEES ‘t HART Director February 4, 2026 (Cees ‘t Hart) /s/ NANCY MCKINSTRY Director February 4, 2026 (Nancy McKinstry) /s/ BRIAN MCNAMARA Director February 4, 2026 (Brian McNamara) /s/ JORGE S.
Signatures: combined Chair and CEO position · Filed 04/02/2026
The increase in operating income margin was driven primarily by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, partially offset by lower Adjusted Operating Income margin, an unfavorable year-over-year change in acquisition-related items, higher costs incurred for the ERP System Implementation program, higher restructuring charges and incremental costs due to geopolitical conflicts.
Second-quarter 2026 GAAP margin improvement and derivative effects · Filed 28/07/2026
While the environment remains competitive, penetration of our brands is stable, and we are confident in our ability to strengthen performance over time.
Chair and CEO letter: North American brand penetration assertion · Filed 03/04/2026
The increase in input costs was driven by higher raw material costs, partially offset by lower manufacturing costs driven by productivity.
Second-quarter 2026 input costs and manufacturing productivity · Filed 28/07/2026
In North America, we have launched a multi-year supply chain modernization program designed to enhance flexibility, optimize costs, and improve service beginning in 2027.
Chair and CEO letter: prospective North American supply-chain modernization benefits · Filed 03/04/2026
