Mondelez International (MDLZ) 29 Oct 242024 Q3 Earnings call transcript

Good day, and welcome to the Mondelez International Third Quarter 2024 Earnings Conference Call. Today's call is scheduled to last about 1 hour, including remarks by Mondelez management and the question-and-answer session. [Operator Instructions] I would now like to turn the call over to Mr. Shep Dunlap, Senior Vice President, Investor Relations for Mondelez. Please go ahead, sir.

you us. thank and afternoon, for joining Good With and CFO. CEO; are Dirk our Chairman Van depot, and me today Luca Zaramella, our today, our our which out we and Earlier slides, presentation press are website. release on available sent

During today. performance. on statements company's about These uncertainties. may results we'll differ this see to are things risks make and call, we statements the forward-looking how Actual based materially due

details X-K on factors Please forward-looking contained and in filings the for XX-Q XX-K, to more refer risk and our statements. cautionary our statements

As our we'll today, adjust noted be in unless referencing items which our certain we measures, results discuss as GAAP results. our reported, non-GAAP for included financial

growth otherwise addition, provide year-over-year currency constant noted. on In unless basis we a

release the You of comparable slide back GAAP can presentation. our the non-GAAP find earnings at and GAAP the and to measures reconciliations within

results will by strategy provide our business review of and a by Dirk update outlook a Today, followed Luca. financial

Dirk. over We turn the will call I'll now close with to Q&A.

I Thanks, Developed Europe Shep, as progress on growth America mid-single to joining North I'm everyone positive Slide top for and led by in call digits, well thanks grew in biscuits to following mix. that annual volume recovery strong successful we will of implementation our with as X. line delivered start markets pleased share solid today. the pricing.

China, provide additional and a exciting grew player $X.X cakes generating majority us in continue few this leading flow stake fast-growing our I'll to We boycotts also of partnership in of the Strong a enabled some cakes in growth free Western year-to-date. mid-single pastries minutes. Evirth, cash in continued markets digits despite expanded category pastries on in markets. track acquiring Emerging dollar brands in by profit certain presence billion robust our color and a record and

long-term very on snacks. portfolio strong us such focused and consumers geographic opportunities. long-term These We iconic giving remain fundamentals, continue growth in our well our core categories as our of combined that our growth. sustainable biscuits These generating top show consumption against positioned remain compound on headroom confidence and baked are chocolate, core strong strategy, favorable categories to on driving advantaged progress with we keep diligent to significant footprint, to

to Slide X. Turning

that dollar organic adjusted mid-single drive digits, of us this to XX.X%, can X.X% up investing to quarter business. is see with revenue consumer gross net A&C grew continuing growth You continue in the profit spending helping enabling and and this first of flow cash to through And generated iconic free XX.X% the months both customer in loyalty grew billion brands jewels. X the our we and year. quarter, local global EPS our have adjusted $X.X

took X, Slide developed growth are third quarter. pleased beginning uptake seeing North quarter, we revenue core consumer America, year are we areas we cools, healthy revenue the In and earlier in and continue our Unlike as third to our On X.X% are increasing Europe, seeing in grew pricing disruption solid in peers, to volume/mix see in volume an are growth as that our continued snacking distribution recover, hold. of Club. of inflation Similarly, with categories. start like following the rebound we the annual to many in expand significant to markets

us to of meet revenue array growth are peers, consumer's of formats, with our our turn needs strategies And to their pack value. and and a points revenue corner. of definition to sizes volume/mix every indulgences. and embrace everyday beginning are Consumers net meet broad as to both price the many biscuits continuing management Unlike enable product chocolate

X. Slide to Turning

prices. loyal share concern over up States, stable is working. volume overall their You to more United consumer brands with can volume the favorite and is X to pack our context architecture how consumers label private on remain price In slightly grocery Biscuit America, months. that and that the see bit last remains despite In to declining, snacking flat demonstrating why our categories durable. is North a category remain continuing improving confidence

a in remain our As largest elasticities result, are slightly Ritz Meanwhile, Europe, year-to-date. X but modest. higher moving are U.S. and gaining share brands, Oreo

growth see to share the private both biscuits continue X label solid in We category and with value past over chocolate months. declining

offer consumers chocolate choices. to shifting range price-pack are smaller enable Some everyday snacking. again, us of and of architecture our packs And for RGM appropriate to an

Consumer As confidence season, Brazil Mexico. solid. seasonals in are looking India, elasticities modest we markets, into also the emerging and is year-end festive head In stable continue.

While improving and we're beginning value our seeing biscuits optimism Overall, policy combined share return effect. the overall emerging challenged, both remains is in economy volume take markets China to as chocolate. stimulus and

strong scale sustainable important remain biscuit continue to chocolate, It's external progress long-term And strategic remain reinforce our while our to categories of our expand continuing snacks distribution, deliver and XXXX. M&A XX% focused X. drive our growth We We're strategy. core on remains Slide revenue deliver to snacking. we accelerating in our that teams and on agenda. track environment the Turning reinvest to against volatile, of through by to baked brands,

with a For forces key global high-profile but innovative not top zero strong of with August, stay brands of enable OREO in Coca-Cola, bases unite to sugar limited fan partnerships a XXX-degree and for digital, in example, X to build marketing only retailers. OREO-flavored social, collaboration Oreo brand X also brand activation investments Coke-flavored joined to largest cookie us our and strengthen types iconic to celebrity coke. activation buzz our our an in-person campaign mind These around launched and an encompassing editions, date. These consumers,

the and strengthen store these continuing visibility execution with Along marketing activations, are we around world. to availability,

For digits plans this growing additional with further grow with convenience channel on high to is stores. example, coverage basis the single year-to-date in channel a in Brazil,

the to continuing drive We and are capture synergies harness of acquisition also power to growth.

acquisition color category. in in growth minute. just additional China, For provide cakes and the example, a pastries Evirth our our changes I'll step in of

our environmental continued and progress on a Importantly, social committed focus business we remain towards to snacking through sustainability sustainable agenda. driving more our

LU introduced and Belgium in France, our Kingdom. For the packaging new brand biscuit we United recently example, recyclable legendary for paper

dig Now and and in into category let's little a announcement China. the deeper recent pastries cakes our

cakes global pastries the opportunities world, valued billion. is global this Slide packaged see we because As category the about bolt-on growth. significant organic M&A well highly you #X holds is can And XX and see currently around fragmented share USD Mondelez for position. as on the category X, as at

acquisition brownies, related rolls We snacks, Europe. North XXXX products growth a delivered And manufacturer frozen-to-fresh acquisition bakery in anchored XXXX cupcakes strong America. our leading related Chipita, in Central category already have this in through our and croissant, Go, of Give and the bake of & Eastern cookies, in leader and of

on right-hand and side the double snacking is a category billion. currently Chinese that slide, can at at to XX meet profiles growing of see $X.X segment In taste innovative options cakes and growing digits, the of Within valued packaged sophisticated the you is the China, billion. frozen-to-chilled consumers as USD with seek pastries estimated range increasingly fresh occasions. about category, premium

XX, with you Slide the On fast-growing the are in Evirth, Chinese can about of see category. the existing we why partnership excited frozen-to-chilled leaders expansion our snacks that's baked

We brands, cakes of pastries, years have Philadelphia. and for OREO develop, iconic including sell market manufacture, and to worked and our featuring some several with Evirth

of accelerate further the of Evirth R&D stake with purchase technical combination our advanced expertise. enable recent through high-value to a us innovation, and continuous brands growth majority Our will leveraging

including Chinese fast partnership a has especially scale mid-tier stores, customers, in consumers among cities. strong younger with Evirth among generations increasingly and and enable distribution us are seeking growing key our fresh presence to broader will premium Club demand products expanded faster.

light category, XXXX perspective a I in headwind. to some our great generate share turn the microphone preliminary I'd continues to on approach and Luca, Before known widely significant over of remains interest. to cocoa consumer cost like to the Chocolate

count share Lacta with to celebrate Milk, Toblerone, Cote unwind family on occasions the of to indulgence. brands, Cadbury including Consumers Milka, and iconic friends our Marabou, special with moment D'or, Freia, mindful to Dairy and

loyalty our As confident continue we necessary we to not endure will brands, continue as but consumer in grow to even the will only short-term we pricing execute remain steps. invest that

chocolate our is growth of and whole Our as the particular. in health a the focus primary to continue category to the build brands, and

promotions. on elasticity anticipate while of certain some temporary upticks in markets, remain to we need we in and with value, cost to increase and relentlessly we RGM our and accelerate cocoa tools consumer and strong such And to in investments strengthen growth, as improve media. might adapt loyalty as more aggressive visi-coolers While in to obsessed working invest brand the do will visibility pressure that we put will continue continued accessibility margins, as well

are consistent to well of sustainable and taking majority algorithm. for our portfolio long-term emerge manage we the steps the to attractive expect that confident we to believe our headwinds We we both right bottom chocolate equipped stronger. input and We And appropriately and growth. remain are business top to the position cost grow with line,

additional share to over With that, our Luca turn I'll financials. it on to insights

financial QX profit Thank and key the you, grew growth. strong flow. and grew across line, of including pricing X.X% metrics, for emerging mostly volumes, free by boycotts driven X.X%, and a mix markets increase Mexico. growth volume/mix Revenue dollar, gross Total earnings lower volume Developed of X% America a top positive good strong in a quarter Europe. and with with with brand Dirk, was X%, A&C cash grew and North everyone. by volume both revenue execution EMEA afternoon, driven markets investments, mix in X.X% Western our decline

minus grew Latin pricing came and in and XDays grew a X.X% was after down robust Several customer emerging XX. plus Oreo, growth, Baked with quarter disruption. by X.X%, quarter. performance strongly Moving belVita, good both X.X%, snacks LU, markets. whereas U.S. most the balance in Slide including delivered strength Chocolate solid driven delivered mostly of and Volume/mix Club Biscuits Social. growth from portfolio Europe to developed challenges volume/mix. back Ritz, on Biscuits & America, for brands both the in with

markets, Milka, X.X%, and Freia, quarter. for this positive. growth by Milk, Candy in Gum Dairy momentum category candy. driven all was and Marabou strength Brazil Cadbury in & including the grew key Volume/mix slightly and delivered U.S. Toblerone continued strong

Let's on share performance and review Slide XX. market

share Gum XX for gained solid in points approximately of We in offset revenue results & in our as our trend biscuits which well was XX% partially as held This business, percentage revenue. or candy.. base chocolate U.S. by of with accounts

QX We total improvements. we following but still in metric to help have improve gained price work moving share share further do, to seen believe in in in QX Europe as expect last has new should the disruption and shareholding drive The packs months FX. forward X U.S. customer

to X.X% as markets uptick OI and X.X% grew America XX% to against XX%, including investments favorable stable. relatively nearly dollars were due versus strong performance but ]. more elasticity Moving a delivering all the and in significant XX. year. A&C pricing resulting in strong on saw in We Germany consumer of growth. North in phasing France, part regional pricing, [ the significant U.K., prior sentiment grew remains up than was cocoa QX. compare slight Europe Execution a from key such Slide in

Solid Coca-Cola performance impactful channels, distribution the Oreo like partnership in drove growth growth. and gains brand activations QX

Ritz price high now. provide $X New just hit to Ahoy! in for X.X% retail across continued growth, representation results increased Stride, America will single-digit X.X%, coupled grew ongoing $X year-to-date fueled Ahoy! that better Chips XX,XXX China the with Oreo, outlets beginning EMEA strong gains, basis. and pack by and shelves approximately brand Oreo, to in adding range a Chips and are posted North distribution building investments new on with

has slightly promotional QX in led environment. decline a inflation in where was down competitive to more driven a biscuits India by

Japan of flip delivered strong perform quarter mid-single especially and results. within price the and Boycotts to Middle grew to On segment, the digits. and which chocolate East Asia by remain the low well, RGM, activations headwind innovation. unit in driven New Australia, Southeast another growth, strong side, Zealand a continues

for expect foreseeable persist future. We the dynamic to this

largely is QX. it the embedded However, base in beginning

was to OI was Andean while down A&C unlike growth, been the region X dollars X.X% growth. contributed growth. and than pricing primarily capped in XX Argentina of that Latin and country worth at points where Mexico with Western has QX Mexico. volumes lower approximately due Note Brazil the declined increases. more to Latin points XX% grew impact overall America more quarter. X% year, Argentina OI the by LA last modestly. meaningful EMEA America percentage XX% increased The than in posted to

fueled QX, XX. gross double-digit has to saw discipline In we results. growth. execution these Page ongoing Top line dollar, growth, Turning profit NOI strong pricing dollar and cost

reverse is dynamic QX, cocoa cocoa benign up relatively catches QX, levels. In to will to thanks as pressure market addition, our meaningful effective strategies. in In still this profit coverage with to

currency constant to drivers more on QX EPS on Next in Slide grew XX% EPS XX. as same the than OI.

EU in strong $XXX to you to million commission on free includes flow, as matter. delivered the cash to We of nearly We continue date, billion can a Slide payment generate related see quarter the XX. which $X.X

We have into repurchased $X.X will remainder year and and to continue XXXX. of for stock year-to-date billion in the opportunistic be the

to remains have since market the moving all-time Cocoa showing Both ahead We're to go signal is year. context physical with tight on believe stage, new positive cocoa. aid harvested. future crop. recovery highs I'll consensus of some provide still additional XXXX. a and to good before forecast the internal still post outlook due normalization, and this nervousness our to availability significant our few weeks crop Costs Before We outlook albeit outlook, new the eventual into last stocks news. a decreased compared signs this of is increase At surplus

We to next flexible risk manage us also would a allow continue hedging employ to that structure year.

cost into XX as Slide we move pricing to to approach XXXX. Moving and and our

frequency and tools thus and RGM declines limit in terms consumption. pricing, will to of volume continue In elasticities, the utilize all penetration minimize playbook of protecting our we to

price unit and will especially entry We for items. keep low points, level

improve our multiple levels, price choices. participation more also offering will at consumers We

our working continue will primarily to we Additionally, reinvest brands, in through media.

another focus. a is plan productivity. overheads to management and area take targeted of We media, to on costs focusing Cost by nonworking managing approach

rather changes. disturb will temporary the areas business but can We lasting moves shortcuts take where focus or we not make on make that

not that presented headwinds to also investments plan key sacrifice the cocoa year. or quality. have next strong confident Net, a are product will We we navigate by we

on settle levels. health remain what ourselves while this cocoa will focus the sustainable will emerge can to We ensure needed control agile prices category, to more we when and positioning stronger at as of long-term

outlook. to Turning our

unchanged. remains Our XXXX outlook for

algo to on for expect ] continue [ cash share, and revenue, flow. growth per delivery earnings We

Just a EPS. on word

single-digit strong clear, operating that includes you are high When of expect to market developed at aside year-to-date performance. continue XXXX growth We X a base gum. look things from margins,

we has priced better growth and we the market; profit procure First, replacement at good. cocoa prices quite cost. much Thus, second, than been the

an other anomaly. side, of is QX On the a bit

yet peak, procure of time, we pricing benefits same or close cocoa either savings additional QX will in at have prices, peak for As initiatives we not not to the at QX. if while cocoa planned the

will key shared cocoa last million we at of for consistent QX with significantly expenses, what the While which be be XXXX, our than is is year now year. XXXX. assumptions it than our of you with to call. next remain interest the $XXX Most higher average with projected lower the of exception other estimated on

which would of is I majority get our into of specifics on The will it chocolate around Although is to outlook, premature couple 'XX note business, not be items. our a algorithm.

half cocoa peak expect sequentially XXXX improve margins be XXXX. to QX We pricing reflected in while versus first of the should chocolate

plans RGM Our for management expected reinvestment. cost room are pricing, and help provide around significant be and to

are algo growth is However, pricing. from down to see than benign additional sit be in we where XXXX future assumptions. our planning it tough path adjust current there curve to Cocoa will a earning current elasticities more the today, and/or [ much unless ],

would in will us the pricing of unlikely our opportunities, do short-term cocoa not have our on normalize we chocolate our back in be are cocoa But event But business our still to And we to to navigate going fundamentals approach times, for is growth they the normalize. the we good to our meaningful seems plans cocoa as approach control business, with XXXX, track a get allow continuing about feel we to XXXX the of to gradual take. make a by profit said algorithm. prices. the Overall, this best investments we and Clearly, in we dynamic. to few that to not believe the rebound

earnings stronger this attractive We positioned even period better sustainable elevated and cocoa growth. expect for from of to emerge prices

details We provide our year-end more XXXX at call. related to will

the our JAB of sales on Finally, shares. a word

We on happy we the with investments. our return coffee realize financial overall are

over will CP deployed open more line questions. will full Some you. of dilution for be proceeds Thank There with with X-K modest QX the We lowering and coming towards details the an towards $X.XX a that, deployed the headwind. to buyback let's immediately a our With weeks. but be balance, M&A. year release be eventually will support in

our with [Operator first Andrew go Barclays. Lazar Instructions] We'll to from question

could I of the going year? that and next cocoa in in in discuss Dirk, was present challenges how shapes going is to strategy and the XQ maybe forward puts chocolate takes of specifically sort first, your you that hoping Maybe, light

say overall, we good also that Well, dynamics I the QX, Andrew. about see the would Yes. there. feel and we results in

So as you growth. we top see, can have line a strong

in markets we There's We have markets plans America I And up the of well. with most but emerging positive Developed growth that. address And places solid to came softness solid. volume/mix. also balanced would the strengthening have a remain there, consumer, Europe holding say, is and few in North pockets back clear again.

invest bottom free strong with media in to line working flow good was cash results. our continue in And our We brands. very

quite the So we that certainly challenge, activities would into that for to have our we very clear can't about the what which top deal overall, Yes, is we and are I there the but planned because complain, think line chocolate challenge. is year. have next business robust continue on is say, core. a And we with we cocoa I the will to feeling we feel good year be healthy. . And have quite vision principles next

is focus a health the great category, to chocolate category. protect which Our first is the of

an one gain overall Our to this develop. will course, business market share within how category hold our approach develop and is, category long-term how the of and second or to taking will

to making sure points next we we year, are certain have of price and price key conscious thresholds. but that We protect very

in unit in markets bunch of or chocolate pricing in new lot launching business. a a work doing we're entry-level we're and So of markets, low our developed emerging on our pricing sizes

went different how through And very think all the we've in has coming just We through. we have. through thought that the well done really thought the are work units that evolve we plans I strong. think RGM been category will is business months. the everything our And think I with

to planning the and media in there. look are aiming We all continue our are for did nonworking to we But at significant efficiencies invest brands. some

of call course, rest as so will in the work year that we what a financial then few business said next But category, deliver overall. I we that extra more on gains our realize committed Maybe taking is any a sense usual. would is particularly there other costs, costs And also short-term of business fully results it. have The overhead an and our think can and reasonable we as We we overall, shortcuts I are that do chocolate for will is pressure. outstanding not we next additional to things pricing, are we year. some before,

And the reaction things other to different pricing. thing relates is maybe can as go it to

be less We could have planned. volatile. than or that or could assumed is less elasticity, be normal pricing or still more cocoa very more but It we

being in with critical next that be will hope thing year we I those So how agile I deal us, helps. situations believe. another for

And that. Yes. cocoa just the where very I it's But I you're the higher appreciate cost. first you'll fourth 'XX No, of then as prepared provide impact one to quick quarter, mentioned, not you a Luca. helpful. see significantly realize, detailed follow-up, yet. obviously, guidance

the can lines, I think XQ the guidance, does should you year-over-year, way to think year, yet. inform going So implied share so XX% along not whatever how you're else thing those EPS, provide down about guess which the full next or some knowing looks for I we

EPS little a a are and will that, clearly better year-to-date very that I us Thank with by bit understanding you, next saying happy basis year. QX mean help think, on we Andrew. start will I I

actual first in-market we that We line . a than advantageous expectations. in buying quite And general, our level in strategies quarters have with clearly today, cocoa as priced been higher to have compared cocoa costs. to the landed cost X for all is of our our pricing are,

is out, year-on-year. on QX guidance in rightly But remarks point a you sort down implied of see As EPS us for based I that said I as prepared anomaly. the the reaffirming that

XXXX. in second, costs for or will there in in place when the is value. for the First cost of QX, put of as locked beginning of the numbers measures clearly, in was that peak because pricing at no of of cocoa additional all, we that cocoa effect And were matter QX

mind through as in flow XXXX, in of Bear will pricing not one. that day

can overhead a we half XXXX, to the the work the And improve. is scrutinizing of you of tell take year. second so a more sizable as On are about nonproductive will profit particularly quite for of lot it will improvement lower costs, and second expenses. cocoa that done half media that versus have profit of we and we bit all talk towards FX. the in consider 'XX, in our in little costs, be I time costs Please frankly, removing area also And

elasticities. have be a the clearly we'll amount productivities initiatives should increased full have We of to And delivering supply that limit in that chain. of our slate we

adjust As materially elasticities I growth unless into a to said, benign, and/or it that more. more a us possibility is to is hard path are now to still allowing see price and EPS cocoa XXXX

the we put We have seen, fairly increases as in following been of instance, that benign. price late, for Europe, have elasticities place in

time So is that in cocoa that have impact year. to inevitably next we realize volume push enough if the will there, more we little price offset forward a might we bit

next move Goldman Ken with JPMorgan. We'll to

America across did to it. I snacking. mention your what question that on a North of more America, the, larger, RGM And categories as one the and a, of I was be challenged trend you that. then comment appreciate bucking made sort part seems On follow-up. being are had North

get better kind once you're what or that to of is are snacking to trying we're factors that your continuum seeing elsewhere seeing said. as sense than allowing Just as that someone what the a do broader across allowing other categories

a that of concern, changed. category of say consumers categories, lower say of Yes, their value and the I consumers, would consumer first purchasing big has in say would income we modestly pressure. food that slightly. feel feel of clearly and Ken, have the confident. they're prices, say, ones overall, all, that remain I most also would . I power the is deteriorating, the But high perception the to see that high as the consumer relates would we our prices growing the recognized I is I would the that particularly, getting And is it certainly more improving say

years If the you the shopping unit really X were price. pack for go or consumers back, price per

so family party and sizes became And important. very sizes

Going have since that below their of are to by is months X say, income few most part forward shop consumers I baskets. now, basket. remain a that certain the say biscuits important for would size would quarters, them. shopping many or a I level total It of

consequence, $X basket a fit particularly products that needed as price meant to shopping has the become And we to point $X our that that within and very important.

And so in on QX, range of have a that we sold have launched there. packs bring $X.XX. Chips will And worked our with new promotions products on to Oreo forward, we going Ahoy, at be

And so really. the the that's we are think bucking trend we way

really So to consumer categories doesn't on the one without. hand, want do that

And starting some because the we're points overall stable. market that, gain category top price to on are hitting right so is pretty And share now. right the of we

what and next pricing to the algo growing messaging part there forth. algo then about that the of understood comment line. the within for portfolio, next just just And my the top implication portfolio about of the and the Is follow-up, I the within be year, not all the elasticity the sense make of on trying was takes -- a the so wanted will real majority sure the minority puts I get and about to given year, top in line

to mix that we categories Yes. It's basically have. of related different our

will we part part then referring chocolate be algo. that line be algo. with And not in normal the the in We is business and with have is what expecting XX% to our to. are That's were we of our that our line that non-chocolate,

the line, On specifically. bottom

On the bottom line.

line bottom to a sure... just comment was that So make

is on going is part, chocolate line. Yes. is remaining algo. I be of said that on bottom algo to The portfolio XX% not on which the the

top strong pretty year. a line for next see We

Yes, it that's that's why no, helpful. I appreciate I wasn't -- guys.

We'll go with John next Baumgartner to Securities Mizuho

biscuits And the like capabilities about unique as speak of to confection you there's view where space do plans I'd of to and there, vision company can the the to the could that growth you and pastries. expanded sort sort you cakes your what goods. your disruptor extent in is frozen capabilities be And leverage ask in relative advantages of in opportunity baked in extent a goods other you . if that for Dirk, in can one to maybe light North see to that thoughts to on in Europe, that, what space. technology, competing China-specific Evirth markets? your a Just where cake that the America, baked some from

key that a highly low years, and the in fact, quite the Europe, And in the double is years. pastries X Well, is category. over play. the the we -- if much than cakes that it's growing over play, it's category cakes $XX fragmented and and consider category. some category. higher a you Yes. biscuits is that's of digit value opportunity bigger the last X as Per billion where not CAGR markets but already strong we where is X% kilogram, packaged category to pastries the U.S., the want the a China, include nonpackaged, It It's area we that's last

We globally, are a #X share. have but X.X% only we

in a pastries cakes certain with certain an biscuits is line there by from brand that a brands category. but known opportunity also the offering are with soft that that So quality bring and to come or in aspect positioning

play brands. that other That some to really an is for we category, So of Oreo or our it. in are the instance, thinking way about

products, Now in fresh fast. which store, a already to is We is & there's Give growing in been company different from producing the that techniques goes have in which Evirth these Canada, very a particularly. that's frozen company Go

producing quality segment. the really that produce, products. of are this China, is quite they are can is thanks Evirth to more is the And that they way to that similar to sense category cakes sophisticated into say proprietary the much booming. These And In their quite but exceptional. I have

a growth think see this double a the how can is okay, first priority have we China. rest first is the sure our time we like has big runway think of been to China, the we But can started quality see strong last is And because so But we in expand years. this that make opportunity. we digit growing to high. The about, so in long we would that, business the possibilities. for to that of to for of being, And the the serious world all, get

to with We'll David next Evercore go Palmer ISI.

where 'XX you could to be you're what that were essentially right could clear could require something and earnings, saying breakdown I to you frame that in range quarter reaction a is in 'XX. sustained like that price likely sort into reality to that you're elasticity a that. obviously, from for that cocoa earlier pretty hard would on further the wonder, be outcomes seeing. offsets your into that that. the or for in wonder reality what pricing have see have about first just Perhaps I perhaps, the a a it comments EPS price enable, that price little And a setting cocoa in would EPS when feel the have benign 'XX, time you visibility place, like year. your a you're would by And I'm wondering give growth would you see now, pretty seeing narrow you of timing. of path that don't you

to that the since last the waiting late, any 'XX, in is fact quite are cocoa think will the the result is into I are month here, Look, crop One it crop we the X market for that been in of prices. but as sold materialize. play. new believe There Coast of Ivory has I as still short that that some the there they hardly is has nervousness elements 'XX the said, industry come and

last is slightly same at of point the have confidence the XX%, well this weeks, X fundamentals the about latest versus in Ghana, the be time soon in cocoa, . And level couple X-year is in the XX%. around below will Ivory that it is spot we average in On but year. Coast, weeks, but it count of of up next

Ivory our up prior the direction already year, supply the Importantly, Coast, [indiscernible] was in that good of really way. points XX% and versus coming

clarity cocoa of call month So couple I months. in the or on expect next prices, have it, to

much think clear. I be clear, much the much, situation more will

cocoa in albeit take decline of have we the really want prices is most also protected Importantly, in case, be upper January, I is That arrival potential in cost. to sense which cocoa likely advantage should of cost. haven't because yet. while the prices we be We side to will of in of want think by will our February. on the we drive locked cocoa costs then, important cocoa And Europe, a

are side, of the think I other going of On that time we're you on places Europe. see the like quite where implement price a earlier. alliances, know good honestly, are it have And I U.K. the see having in of look, much today, think we they going quite in And of elasticity, see buying impact. in takes level not terms we big effect to what a the little from already to elasticities we bit don't to

end have markets, we In said, we beginning level. towards to points there, to Europe, the rapidly. wait For I as emerging of rest are protect the price going entry the will of quite But QX. of QX, in we price will

and QX be this So end a prices, the beginning long way year, in QX, beginning QX. towards much be particularly the end by of will say, clear of of to of clearer should Europe, cost cocoa

wanted Europe weak right a U.S. is in any way, you end outside which you interesting player, the your weak doing Obviously, U.S. market historically just helpful. weak. brain snacking those the category, confectionery and just the receptivity right to and be seems pick now. pretty is on U.S. the guess . think snacking snacking the chocolate developed is That's two in cookies, there's could And and for about see, you which confectionery very for global in you're see towards participate is particularly I in consumer between you in to high versus you right of sort Ken why the confectionery example, I asked bigger what I'm what if now. in the perhaps, price juxtaposition example, the so wondering U.S. rough the And we U.S., why with of now? create and but

have the better point price can we terms for in Look, might comment there that built of the market consistently companies of view. that tell us over a support, have our is about emerging Europe it's point. and know, much have you as because other brands small What we U.S.A. are participation really distribution, years, markets, b, in tough you a been chocolate to and, in the because market in in

pulled advertising, never back terms of $X We been have increasing [indiscernible] in we consistently. have

improved execution our Officer, The with there. Chief capabilities have dramatically. is marketing Marketing Our

at them. distribution think built proud in but our and been brands have I executing are we increasing least, by of and to and at consistent So Mondelez, are very we of our maybe, brands in we case, been have look, investing And those have out. lucky people our to

We'll Peter America. Bank move to with Galbo of next

comment EPS, Yes. Luca, difficult wanted on to circle back just 'XX path the to growth. your I actually on

does [ JDE Just the that that is for like-for-like just or a so include on we're ] crystal also clarity, clear? basis, dilution real from

quoting No, I was like-for-like.

an time JDE might multiple imagine premium got to the [ the ] when unaffected Peets XX% by of due looking stock in X-K, price. we issue will even We at you

that, lower might You ours. imagine to that compared multiple is

upon to be if some not back of that there dilution, is to path . we telling a you something buy meant sort see growth we even to when So that year. EPS which stock our comment had I don't into will next I was

it. Got

No, Okay. you go post just were to think the And customer quarter disruptions. of back a the helpful. pipeline bit I Europe, to sale in expecting that's

Just a that you unpack curious more. bit can if

of an come thought you just Just helpful. quarter? more the it there of would? Any where in in expectation would they color that kind did additional of be fourth Is

already to all. frankly, at It's beginning for was ship going Again, impact in Look, there you, but to U.K., case pipeline building, Christmas some have a of can it of didn't QX there that plan the particularly in happen tell was back-to-school at was -- mean, material that, instance, I quarter, really not happen. quite in pipeline not activities. the in is for much the QX. we the that I

So all material. the wouldn't Europe pipelining as in effect in I all, call

to next Carey Securities. We'll Chris go with Wells Fargo

flexibility weeks a obviously, So they how next just helpful. expectations Luca, year expectations next that's variability just the that productivity or coming manage to But how cocoa, confidence one that this or through do better, you Just you get other get the on one. for from things to different months within as ability budgets the can your you to much say obviously the think and today? early I'll have maybe know as much you just sit if respond is you have you question to about the respond the if But those we about X, from a the for talk here hold the might relative expectations flexibility over then have quick or your to you around year, things X mentioned. overhead just productivity the get in standpoint, follow-up worse next say, other ask worse if

So we have clear coverage strategies.

about have in of have at part think cocoa we all our you I about good of And we we for needs was time, we think put and protected. is half place the futures in place, we covered that in part put the covered and a point second XXXX to very this way that is the the inverted. mostly as of year the And when have. I needs that clear structure it

], allow down through upside The a had benefit protecting same further mostly covered at which the really the out. but collars have if market you going adjust us rest by is time, exposure. [ and to the so would And participate to

on the plans is So -- say. there flexibility, we the I bit quite of would a of have adjust. part pricing I RGM, should say, would big The a market

a but year us that done with provide think bit is through little RGM, rest be I to X/X of flexibility. the next some the is maybe less going flexible, pricing

bit we or for we we pricing see prices benign, matter, we see thump up little elasticities So severe more that lower more could a the there volume could more. being if reaction

built plan. flexibility the So that we have into

a year. a then regions. And global hitting peers, year. Is seeing? something it Can another hearing the point? from just some now? decelerated that's that been right you And comment on quick just of has you're -- just piece, for So comps the there. number follow-up around just you last America is the China relative your to tougher underlying a bit We've optimism one Okay. of business seeing of it of this on kind the me. at volume mentioned on optimism then couple that Latin Or you're here through

still else we would very I in America, It Latin but strong what that territory, is still ], Argentina. in has good on say, Mexico is true [ case. negative a WACAM overall, except that our feel see go to we we performance call by is and driven everything Latin volume Well, Yes. Brazil, largely about pretty started America. which into largely also

instance, candy categories. have in we in we are adjustments doing Oreo and to really for largely pricing chocolate And do, in because need is one gummies it So country. some it's the the concentrated well and particularly But Mexico. there, quite that

in that but has feel problem wouldn't a I major us, Latin particularly the slowed area previous So quarters. it down for is it versus certainly America what was

our will take from We final question Tom...

me. excuse No, sorry, sorry.

I see to optimism. why Sorry, China we about and still needed talk

So overall, China. we in quite well. Businesses have a performance are very good doing

volume mid-single-digit growth. We have a mix

single-digit high revenue have net We growth.

we slowdown, our wasn't talking good. optimism. pretty feel economic the about I And despite So

which policy, with our be We thinking which think consumer are, towards economic warehouses, is big consumer we some the think optimism consumer monitoring. think boosting and to affect out stable of buying. snack channels going category I released shifts government biscuits scope. some there's and instance, overall Nielsen some that for club will change has because are we And the in

is top something see is you of that that can So the what data. in on

So feel we category trend . other the we we we're most consumer think China probably distribution overall, companies. that strong the and optimistic that have But a underlying about more getting gains driven by is a territory. positive more than an do

final we'll to from Palmer with question Citi. move our Tom

in which help even more then then consider first in just an in acceleration what to we Could actions in to most versus to pricing growth. quarter, XXXX. improvement might you ask on coming regions in XQ. seem there imply are to saw volume frame organic guidance with the be The sales some confirm, would Or wanted this the quarter fourth And driven? this apparent? be perhaps the fourth I would

are done. as far this in concerned, is point As time, pricing at we

so And is sequential no there pricing in into QX. additional effect coming

I going see North America. in strong think performance you're to

QX then QX. of the on We a last QX too. see the I be been. the conservative, the going a Europe, us EMEA, the are there in we bit to going little end, which, has as is, if way, is that we boycotts you been And the but a think should you in strong algo, that Look as in higher to year affirming Latin more X do started get in X in by improvement light there see of we little at I America, guidance bit start results are you well. bit for line, strong what of than to the lapping an which think have said, to a rate top should end growth QX implied high performance little

Okay.

was attending convinced do we I think place for hope thank quarter, last the in are you the to to next I call. Well, Talk that well time. that our make that Strong you've hope got happen. plans and also, you question. XXXX that will Thank in we and you.

you, Thank everyone. .

gentlemen, Thank conclude you. this today's does Ladies participation. you for and Thank your program.

time. any at disconnect may You