Mondelez 2013 Annual Report Download - page 48

Table of Contents
EEMEA
2013 compared with 2012:
Net revenues increased $180 million (4.8%), due to favorable volume/mix (11.0 pp) and the impact of the acquisition of a biscuit
operation in Morocco (2.5 pp), partially offset by unfavorable foreign currency (4.7 pp), the impact of divestitures in Turkey and
South Africa (2.2 pp) and lower net pricing (1.8 pp). Favorable volume/mix was driven primarily by Russia, Ukraine, Egypt, West
Africa, Central and East Africa and South Africa. Unfavorable foreign currency was due to the strength of the U.S. dollar relative to
most foreign currencies in the region, including the South African rand, Russian ruble and Egyptian pound. Lower net pricing was
reflected primarily in Russia and Ukraine, due to lower coffee and chocolate pricing, partially offset by higher net pricing in the Gulf
Cooperation Council (“GCC”) countries, South Africa and Egypt.
Segment operating income decreased $127 million (25.1%), due primarily to higher other selling, general and administrative
expenses (including investments in sales capabilities and route-to-market expansion and a write-off of a $15 million VAT receivable
that is no longer realizable), the 2012 gains on the sales of property in Russia and Turkey, lower net pricing, higher raw material
costs, higher Integration Program and Morocco biscuit acquisition integration costs, unfavorable foreign currency, higher advertising
and consumer promotion costs, higher 2012-2014 Restructuring Program costs and the impact of divestitures in Turkey and South
Africa, partially offset by favorable volume/mix, lower manufacturing costs and the impact from the acquisition in Morocco.
2012 compared with 2011:
Net revenues decreased $101 million (2.6%), due to unfavorable foreign currency (4.6 pp) and the impact of the prior year’s
accounting calendar changes including the 53rd week of shipments in 2011 (2.6 pp), partially offset by favorable volume/mix (2.5
pp) and higher net pricing (2.1 pp). Unfavorable foreign currency was due to the strength of the U.S. dollar relative to most foreign
currencies in the region, including the Russian ruble, South African rand and Turkish lira. Favorable volume/mix was primarily
driven by the GCC countries, Pakistan and Egypt. Higher net pricing was realized across most of the region, primarily South Africa,
Turkey, Egypt and Ukraine.
Segment operating income increased $73 million (16.9%), due primarily to lower manufacturing costs, higher net pricing, gain on
the sale of property in Russia, lower Integration Program costs and favorable volume/mix, partially offset by higher raw material
costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses and unfavorable
foreign currency.
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For the Years Ended
December 31,
2013
2012
$ change
% change
(in millions)
Net revenues
$
3,915
$
3,735
$
180
4.8%
Segment operating income
379
506
(127
)
(25.1%
)
For the Years Ended
December 31,
2012
2011
$ change
% change
(in millions)
Net revenues
$
3,735
$
3,836
$
(101
)
(2.6%
)
Segment operating income
506
433
73
16.9%