Mondelez Earnings: Simmering Sales Evidence Its Formidable Brands, but Shares Don't Offer Much Value

The strength of wide-moat Mondelez’s brand mix was on display in the first quarter, as organic sales shot up 19.4% (even as it lapped 9% growth last year) due to a 16.2% benefit from higher prices and a 3.2% contribution from increased volumes and favorable mix. Impressively, growth was broad-based across categories (biscuits and chocolate sales were up 17% and 18%, respectively) and geographies (emerging markets jumped 25%, outpacing lofty 16% growth in developed markets), which we attribute to initiatives to extend the distribution of its fare and empower its local leaders to ensure products hit the mark with evolving consumer trends.