Mondelez to Cut Ties with Russia by Year-End
June 24, 2023
🌧️Trending News
Mondelez International ($NASDAQ:MDLZ) is a global snack food and beverage company. Recently, Mondelez announced its intentions to cut ties with Russia by the end of the year. According to the statement, they intend to have concluded the full separation of their Russian business by the end of the year. This separation is expected to include divesting of their ownership interest in one of their joint ventures in Russia, as well as discontinuing all related operations. The decision to cut ties with Russia comes at an interesting time for Mondelez, who has been dealing with a number of issues in the region.
This includes a decade-long dispute with antitrust regulators, as well as declining sales amid an ongoing recession in the country. Mondelez is looking to focus on more sustainable markets, such as China and other emerging markets. It is estimated that the sale of Mondelez’s Russian business will generate approximately $2 billion in proceeds. This money will be used to further expand their operations in the aforementioned countries and markets.
Price History
On Thursday, MONDELEZ INTERNATIONAL announced that it would be cutting ties with Russia by the end of the year. The company’s stock opened at $73.5 and closed at the same price, indicating a 0.5% increase from the previous closing price of 73.1. This decision comes after months of consideration and an analysis of the current situation in Russia, as well as the global economic environment. MONDELEZ INTERNATIONAL will be ceasing all operations in Russia, including manufacturing, marketing, and distribution networks, which have served them well in the past.
The company has committed to ensuring that all employees affected by the move are provided with an adequate transition plan. This move will mark MONDELEZ INTERNATIONAL’s exit from the Russian market, though they will continue to serve customers in Russia through online sales and other channels. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mondelez International. More…
| Total Revenues | Net Income | Net Margin |
| 32.9k | 3.94k | 10.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mondelez International. More…
| Operations | Investing | Financing |
| 3.9k | -2.81k | -933 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mondelez International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 72.79k | 44.51k | 20.71 |
Key Ratios Snapshot
Some of the financial key ratios for Mondelez International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.1% | 2.1% | 15.1% |
| FCF Margin | ROE | ROA |
| 8.9% | 11.3% | 4.3% |
Analysis
After analyzing MONDELEZ INTERNATIONAL‘s financials, GoodWhale classified the company as a ‘gorilla’. This type of company has achieved stable and high revenue or earning growth due to its strong competitive advantage. As such, this company may be of interest to growth investors who are looking for high returns and dividend investors who seek high dividend yields. MONDELEZ INTERNATIONAL is strong in dividend, profitability, medium in growth and weak in asset. We gave the company a health score of 8/10 considering its cashflows and debt, meaning that it is capable to sustain future operations in times of crisis. More…
Peers
The company’s competitors include The Kraft Heinz Co, Kimberly-Clark Corp, Nestle SA, and other companies.
– The Kraft Heinz Co ($NASDAQ:KHC)
The Kraft Heinz Co is an American food company with a market cap of 46.76B as of 2022. The company has a Return on Equity of 3.49%. Kraft Heinz produces and markets food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products.
– Kimberly-Clark Corp ($NYSE:KMB)
Kimberly-Clark Corp is a consumer goods company with a market cap of 41.96B as of 2022. The company has a return on equity of 295.51% and is involved in the manufacturing and marketing of a range of products including but not limited to diapers, tissues, and paper towels. Kimberly-Clark has a strong presence in both developed and emerging markets and has a well-established distribution network. The company has a long history of dividend payments and has increased its dividend payout for 44 consecutive years.
– Nestle SA ($LTS:0RR6)
Nestle SA is a Swiss food and drink company. It is the largest food company in the world, measured by revenue and other metrics, since 2014. It has more than 2000 brands across all stages of the consumer journey, with a focus on nutrition, health, and wellness. The company’s products include baby food, bottled water, cereals, coffee, and dairy products. It also sells pet food, frozen food, and snacks.
Summary
Mondelez International, Inc. has announced plans to separate its Russian business from its North America and Europe business by the end of the year. This move is expected to help the company focus on its core markets in the North America and Europe regions. Investors should watch for changes in Mondelez’s stock prices and financial performance as this separation is expected to affect the company’s performance. The company is expected to benefit from further streamlining of its operations, including increased efficiency in manufacturing processes and better pricing power.
In addition, Mondelez expects to gain from an improved cost structure resulting from the Russian separation. For investors, this could mean greater potential for stock appreciation.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
