Mondelez 2014 Annual Report Download - page 41

Table of Contents
EEMEA
2014 compared with 2013:
Net revenues decreased $277 million (7.1%), due to unfavorable currency (13.4 pp) and the impact of divestitures (0.5 pp), partially
offset by higher net pricing (5.7 pp), favorable volume/mix (0.8 pp) and the impact of the February 2013 acquisition of a biscuit
operation in Morocco (0.3 pp). Unfavorable currency impacts were due to the strength of the U.S. dollar relative to most currencies
in the region, primarily the Russian ruble, Ukrainian hryvnya, South African rand and Turkish lira. Divestitures completed in 2013
resulted in a $20 million decline in net revenues. Higher net pricing was reflected across most of the segment, primarily in Russia,
Ukraine and Turkey. Favorable volume/mix was driven primarily by Russia, the Gulf Cooperation Council (“GCC”) countries and
Turkey. The acquisition of a biscuit operation in Morocco in February 2013 added $14 million in incremental net revenues for 2014
for the period prior to the anniversary date of the acquisition.
Segment operating income decreased $52 million (13.7%), due primarily to higher raw material costs, unfavorable currency, higher
2012-2014 Restructuring Program costs, costs incurred for the 2014-2018 Restructuring Program and costs associated with the
JDE coffee transactions. These unfavorable items were partially offset by higher net pricing, lower manufacturing costs, lower
Integration Program and other acquisition integration costs, favorable volume/mix, the impact of 2013 divestitures and lower
advertising and consumer promotion costs.
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 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 currency was due to the strength of the U.S. dollar relative to most 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 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 currency, higher advertising and
consumer promotion costs, higher 2012-2014 Restructuring Program costs and the impact of divestitures in Turkey and South
Africa. These unfavorable items were partially offset by favorable volume/mix, lower manufacturing costs and the impact from the
acquisition in Morocco.
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For the Years Ended
December 31,
2014
2013
$ change
% change
(in millions)
Net revenues
$
3,638
$
3,915
$
(277
)
(7.1)%
Segment operating income
327
379
(52
)
(13.7)%
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)%