Mondelez 2014 Annual Report Download - page 28

Table of Contents
Consolidated Results of Operations
The following discussion compares our consolidated results of operations for 2014 with 2013 and 2013 with 2012.
2014 compared with 2013
Net Revenues – Net revenues decreased $1,055 million (3.0%) to $34,244 million in 2014, and Organic Net Revenue
(1)
increased
$845 million (2.4%) to $36,036 million. The change in net revenues and Organic Net Revenue are detailed below:
Organic Net Revenue growth was driven by higher net pricing, partially offset by unfavorable volume/mix. Overall, net pricing was
up as we realized the effects of input cost-driven pricing actions implemented over the course of the year. Higher net pricing was
reflected primarily in Latin America, EEMEA, Europe and Asia Pacific. Unfavorable volume/mix was driven primarily by Europe,
Asia Pacific and Latin America. In addition to price elasticity, the decline was largely due to a slow response by competitors to
higher input costs as well as the impact of price-related customer disruptions in Europe. Unfavorable currency impacts decreased
net revenues by $1,806 million, due primarily to the devaluation of the Venezuelan bolivar and the strength of the U.S. dollar
relative to several currencies, including the Argentinean peso, Russian ruble, Brazilian real and Ukrainian hryvnya, partially offset
by the strength of the British pound sterling relative to the U.S. dollar. The impact of divestitures completed in 2013 resulted in a
year-over-year decrease in net revenues of $70 million and included a salty snacks business in Turkey, a confectionery business in
South Africa and a chocolate business in Spain. The accounting calendar change made in Europe in 2013 resulted in a year-over-
year decrease in net revenues of $38 million. The acquisition of a biscuit operation in Morocco on February 22, 2013 added $14
million in incremental net revenues this year for the period prior to the anniversary date of the acquisition.
25
For the Years Ended
December 31,
2014
2013
$ change
% change
(in millions, except per share data)
Net revenues
$
34,244
$
35,299
$
(1,055
)
(3.0)%
Operating income
3,242
3,971
(729
)
(18.4)%
Earnings from continuing operations
2,201
2,332
(131
)
(5.6)%
Net earnings attributable to
Mondel
ē
z International
2,184
3,915
(1,731
)
(44.2)%
Diluted earnings per share from
continuing operations attributable to
Mondelēz International
1.28
1.29
(0.01
)
(0.8)%
Diluted earnings per share attributable to
Mondelēz International
1.28
2.19
(0.91
)
(41.6)%
2014
Change in net revenues (by percentage point)
Higher net pricing
4.5pp
Unfavorable volume/mix
(2.1)pp
Total change in Organic Net Revenue
(1)
2.4%
Unfavorable currency
(5.1)pp
Impact of divestitures
(0.2)pp
Impact of accounting calendar change
(0.1)pp
Impact of acquisition
–
Total change in net revenues
(3.0)%
(1)
Please see the
Non
-
GAAP Financial Measures
section at the end of this item.