Mondelez 2014 Annual Report Download - page 39

Table of Contents
Latin America
2014 compared with 2013:
Net revenues decreased $229 million (4.3%), due to unfavorable currency (19.4 pp) and unfavorable volume/mix (4.2 pp), partially
offset by higher net pricing (19.3 pp). Unfavorable currency impacts were due primarily to the Venezuelan bolivar devaluation and
the strength of the U.S. dollar relative to the Argentinean peso and Brazilian real. Unfavorable volume/mix was driven primarily by
Mexico, Venezuela and Argentina, partially offset by gains in Brazil and the Western Andean countries. Higher net pricing was
reflected primarily in the higher inflationary countries of Venezuela and Argentina, as well as in Brazil and Mexico.
Segment operating income decreased $95 million (16.7%), due primarily to higher raw material costs, unfavorable currency,
unfavorable volume/mix, the year-over-year net impact from the remeasurement of net monetary assets in Venezuela, costs
incurred for the 2014-2018 Restructuring Program and higher advertising and consumer promotion costs. These unfavorable items
were partially offset by higher net pricing, lower manufacturing costs, the absence of Integration Program costs in 2014, lower other
selling, general and administrative expenses (including $84 million related primarily to VAT-related settlements) and lower 2012-
2014 Restructuring Program costs.
2013 compared with 2012:
Net revenues decreased $14 million (0.3%), due to unfavorable currency (12.6 pp), mostly offset by higher net pricing (11.4 pp) and
favorable volume/mix (0.9 pp). Unfavorable currency was due primarily to the Venezuelan bolivar devaluation and the strength of
the U.S. dollar relative to the Brazilian real and Argentinean peso, partially offset by the strength of the Mexican peso relative to the
U.S. dollar. Higher net pricing was reflected across the entire region except in Mexico. Favorable volume/mix was driven primarily
by Brazil, partially offset by volume/mix declines in Argentina and Venezuela.
Segment operating income decreased $199 million (25.9%), due primarily to higher raw material costs, unfavorable currency
including the $54 million impact from the devaluation of net monetary assets in Venezuela, higher other selling, general and
administrative expenses (including prior-year proceeds from an insurance settlement), higher manufacturing costs, higher 2012-
2014 Restructuring Program costs, and higher advertising and consumer promotion costs. These unfavorable items were partially
offset by higher net pricing and lower Spin-Off Costs.
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For the Years Ended
December 31,
2014
2013
$ change
% change
(in millions)
Net revenues
$
5,153
$
5,382
$
(229
)
(4.3
)%
Segment operating income
475
570
(95
)
(16.7
)%
For the Years Ended
December 31,
2013
2012
$ change
% change
(in millions)
Net revenues
$
5,382
$
5,396
$
(14
)
(0.3
)%
Segment operating income
570
769
(199
)
(25.9
)%