Foodmakers gain from better efficiency

Article Excerpt

MONDELEZ INTERNATIONAL INC. $48 (Nasdaq symbol MDLZ; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.4 billion; Market cap: $67.2 billion; Price-to-sales ratio: 2.7; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.mondelezinternational.com) makes cookies and crackers (Oreo, Ritz), chocolate bars (Cadbury, Toblerone), gum and candy (Trident, Dentyne) and Halls cough drops. In the quarter ended December 31, 2018, sales fell 2.8%, to $6.77 billion from $6.97 billion a year earlier. However, if you disregard currency rates and businesses that the company bought and sold, sales improved 2.5%. That reflects higher selling prices (up 1.5%) and volumes (up 1.0%). Earnings before unusual items rose 9.7%, to $928 million from $846 million. Due to fewer shares outstanding, per-share earnings gained 12.5%, to $0.63 from $0.56. In addition to the higher revenue, an ongoing restructuring plan, which includes closing plants, streamlining the remaining operations and cutting jobs, has also contributed to the improving profits. Mondelez’s operating margin (operating income divided by sales—the higher, the better) rose to 40.0% in…