Mondelez International is leaning on productivity and cost discipline to absorb elevated raw material costs, but those efficiencies have so far provided only a partial offset. In the second quarter of 2026, adjusted gross profit rose $92 million at constant currency, up 3%, and adjusted gross margin expanded 20 basis points to 34%, helped by higher net pricing and lower manufacturing costs from productivity. Further down the income statement, adjusted operating income fell 6.1% at constant currency and adjusted operating margin contracted 120 basis points to 13.1%. On a year-to-date basis, cocoa cost phasing weighed more heavily: adjusted gross profit declined 1.2% at constant currency, adjusted operating income fell 12.8% and adjusted EPS decreased 8.8%, with the company naming cocoa cost phasing as a primary factor. The Zacks Rank #3 (Hold) stock has risen 0.8% over the past year against an 18.6% decline for the industry, and trades at a forward price-to-earnings ratio of 19.04 versus the industry average of 14.66.
Mondelez International IncCocoa cost phasing pressured gross profit, operating income and EPS, with productivity only partly offsetting elevated raw material costs
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