Mondelez International, Inc. Class A 2026 Q3 Earnings Call

Thanks so much. Thank you, Andrew.

I think that makes sense. If I start with emerging markets, I would say that the consumer overall, the confidence is resilient. There is a difference. India is very positive. I would say Latin America with Mexico and Brazil is solid. China is softer, but overall, we remain constructive on China. If you look at it, we have good volume growth. We have strong top-line growth. Snacking continues to perform well across all the major emerging markets. I am particularly pleased that the categories in value are holding up very well, particularly in biscuits and chocolate. As you know, we continue to increase our distribution. Year to date, I think we have added about 130,000 outlets in India. Brazil, we are now over 1 million stores, and in China, we still have a very long runway, so we keep on doing that.

Of course, there is inflation driven by the conflict in the Middle East, and that is a concern with consumers, for instance, in India. Overall, we feel good about the consumer in emerging markets at this stage. Switching to Europe, I would say the consumer there, the confidence is generally stable, maybe a little bit better than in the last quarter, but very cautious. You have seen some of the things that are going on due to the energy prices and the cost of living increases. Clearly inflation is high on the minds of consumers. The other thing, seeing all the heavy price increases last year, most players in our markets are behaving very rationally. I think the good news is that we have positive volume mix growth of 1.6 percentage points in Europe, was very broad-based. On top, our share dynamics are improving.

You have to take into account that on top we had unseasonably hot weather, which had a 1% negative effect on our growth in Europe. We are very focused on execution. We are doing very strong A&C reinvestment. We are also focused on strong activations. We have some innovations like Biscoff or the Milka Croissant that are landing very well. We think that the positive volume growth is going to continue for the rest of the year. Lastly, North America, I would say consumer confidence remains soft, also driven by energy and fuel prices. To be honest, I do not think it is going to improve anytime soon. The K-shaped economy continues, where the growth is really coming from the higher income households. We feel good about our results in Q3 and year to date. We expect them to continue with solid growth in North America.

That is driven by promo discipline, us growing more in the under-indexed channels, and some of the innovation and activations doing particularly well. Overall, I would say a pretty solid picture in the quarter.

Thanks so much. Yeah. I'll start from a 2026 standpoint, Andrew, I think we're maintaining our top-line outlook.

As Dirk mentioned, emerging markets, we are performing well. They remain a strong engine of volume and top-line growth for us. We feel good about where we are on developed markets as well, performing well in North America despite a soft consumer. You saw this quarter we grew share as well as top line. We're executing well in North America and Europe, we continue to progress well. This quarter, you saw us grow volume as we lapped prices, and carried forward some selective price investments that we had made earlier in the year. From an EPS standpoint for this year, we're maintaining our outlook. I think we've been consistent that we're going to reinvest any upside back into the business, into areas that are working, innovation like Biscoff, emerging markets.

In the quarter, we continued to invest back into A&C as well. Of course, we are continuing to absorb the costs related to the Middle East war. We are absorbing that within our outlook. From a 2027 standpoint, I think despite increased volatility in the macros as well as headwinds from an inflation standpoint, I think we remain confident that we are going to drive a strong EPS growth in 2027. I think that's going to be on the back of volume-led growth into the year. I think we continue to expect strength in the emerging markets, increased stabilization in Europe, continued momentum in the U.S. Then, of course, we feel very good about our productivity program, and the savings that we expect into next year.