Mondelez 2014 Annual Report Download - page 40

Table of Contents
Asia Pacific
2014 compared with 2013:
Net revenues decreased $347 million (7.0%), due to unfavorable volume/mix (5.7 pp) and unfavorable currency (4.2 pp), partially
offset by higher net pricing (2.9 pp). Unfavorable volume/mix was driven primarily by China, Australia/New Zealand, Indonesia,
Malaysia and the Philippines, partially offset by gains in India. Unfavorable currency impacts were due primarily to the strength of
the U.S. dollar relative to the Australian dollar, Indian rupee, Indonesian rupiah and Japanese yen. Higher net pricing was primarily
due to India, Indonesia, the Philippines, Australia/New Zealand and China.
Segment operating income decreased $127 million (24.8%), due primarily to higher raw material costs, unfavorable volume/mix, an
intangible asset impairment charge related to a biscuit trademark, higher 2012-2014 Restructuring Program costs, 2014-2018
Restructuring Program costs and unfavorable currency. These unfavorable items were partially offset by higher net pricing, lower
manufacturing costs, lower advertising and consumer promotion costs, the absence of Integration Program costs in 2014 and lower
other selling, general and administrative expenses (including an unfavorable year-over-year impact from the 2013 gain on a sale of
property in India).
2013 compared with 2012:
Net revenues decreased $212 million (4.1%), due to unfavorable currency (4.7 pp) and lower net pricing (1.9 pp) partially offset by
favorable volume/mix (2.5 pp). Unfavorable currency was due primarily to the strength of the U.S. dollar relative to the Australian
dollar, Indian rupee and Japanese yen. Lower net pricing was reflected in the region’s developed markets, partially offset by higher
net pricing in the region’s emerging markets, primarily in India, the Philippines and Thailand. Favorable volume/mix was driven by
the region’s emerging markets, primarily India, China, the Philippines and Malaysia, as well as in the region’s developed markets of
Australia/New Zealand.
Segment operating income decreased $145 million (22.1%), due primarily to higher raw material costs, lower net pricing,
unfavorable currency, higher other selling, general and administrative expenses (including investments in sales capabilities and
route-to-market expansion, the impacts of a gain on sale of property in India and prior-year proceeds from an insurance settlement)
and higher advertising and consumer promotion costs. These unfavorable items were partially offset by lower manufacturing costs,
a 2012 asset impairment charge related to a trademark in Japan, lower Spin-Off Costs and favorable volume/mix.
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For the Years Ended
December 31,
2014
2013
$ change
% change
(in millions)
Net revenues
$
4,605
$
4,952
$
(347
)
(7.0)%
Segment operating income
385
512
(127
)
(24.8)%
For the Years Ended
December 31,
2013
2012
$ change
% change
(in millions)
Net revenues
$
4,952
$
5,164
$
(212
)
(4.1)%
Segment operating income
512
657
(145
)
(22.1)%