Dallas, Texas 05/20/2014 (FINANCIALSTRENDS) – Mondelez International Inc (NASDAQ:MDLZ) has now beat the 1QFY14 projection& had announced its plans to form its new coffee company. The company will now l use a large portion of the cash-proceeds from the transactions that are related to this new company for the share repurchases. MDLZ also reported results for the Q1 of its fiscal year 2014, which topped the average analysts’ projections as had been anticipated and also posted revenues that were in line. The company’s stock rose by over 7% post this announcement of its results & the company’s plans to form the new company by combining the coffee portfolio with the D.E Master Blenders 1753.
Expansion of share repurchases
In addition, the company has also announced that it will now expand share repurchases and use the cash proceeds from the transactions that are related to formation of this new company. MDLZ reported a y-o-y rise of 10.5% in the adjusted earnings to $0.39/ share, which topped the average analyst projections $0.45 by more than13%. This improvement in the margins, the share repurchases, and the company’s strategic cost-reduction actions have helped it to surpass the earnings expectations despite having reported its revenues that were in line with the estimates.
Mondelez International Inc (NASDAQ:MDLZ)’s gross margins continued to be flat at 37.1% in the 1QFY14, as the higher prices and the supply chain productivity improvements had offset the input cost inflation. But the adjusted operating margins had improved by 1.4 percentage points to 12.2% in the reported quarter on the lower overhead-costs that were driven by the cost management efforts. Mondelez International reported a 1.2% drop in its revenues down to $8.64B in the 1QFY14 that which was almost in-line with the analysts’ estimates. This drop in revenues was mainly due to the negative impact from the coffee prices, and Easter timings as well as the changes in the foreign exchange rates, & divestures.