Mondelez's M&A Strategy Helped Win Crunchy Gains, but Can the Momentum Last?
Mondelez International (NASDAQ: MDLZ), the parent of familiar snack food brands Triscuit, Jell-O, Toblerone, and Oreo, beat analyst expectations at both the top and bottom lines with its July 27 second-quarter 2021 earnings report. The company continues to pursue a strategy of opportunistic mergers and acquisitions (M&A), snapping up growing European cake and roll manufacturer Chipita as its latest major move.
Matters look sweet and savory for Mondelez short term, but the question remains of whether its string of successes can continue. Here are four points to consider when mulling over the company's long-term bull case.
Revenue shot up 12.4% year over year for Q2 2021, driven by "strength across the vast majority of our geographies, categories, and brands," said CEO Dirk Van de Put. Bottom-line, diluted earnings per share (EPS) soared 100% year over year to $0.76, though adjusted EPS rose only 1.6% from Q2 2020, to $0.66. Organic net revenue rose 6.2% and is guided to increase by 4% for the full year, a boost from the Q1 guidance. The company also worked to improve shareholder value, increasing its quarterly dividend by 11%, and buying back almost $1.5 billion in shares during the year's first six months.
Source Fool.com
