Food And Drinks

The MoneyShow Orlando Preview – Mike Larson


Mondelez International (MDLZ) is the oddly named global snack food company responsible for popular brands like belVita Breakfast Biscuits, Philadelphia Cream Cheese, Oreo Cookies, and Ritz Cracker explains Mike Larson, Editor of Safe Money Report – and a participant in the MoneyShow Orlando Conference June 10-12.

The company also sells foreign market products that you have come across on your travels, including Prinzenkekse and Alpen Gold chocolate.

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We resold our shares in MDLZ on March 4th because they performed under a strong market. The news on the sales and earnings front was also somewhat unimaginative. But late last month, MDLZ’s shares broke out of a 15-month trading range.

The catalyst? Stronger results. In particular, sales rose 8% to $ 7.2 billion due to strong global snacks sales. That was a solid result considering the period last year was a huge supply of packaged food due to the COVID-19 outbreak. Adjusted earnings per share (EPS) also increased by 11%.

CEO Dirk Van de Put added that the company sees “continuous improvement” in emerging markets and reiterated the company’s focus on “accelerated growth”. For the year as a whole, the company is forecasting sales growth of at least 3% and EPS growth in the high single-digit range despite higher input and transport costs.

In addition, the company continues to grow through acquisitions. It bought the rest of the US company Hu Master Holdings in January and a majority stake in the British company Lion / Gemstone Topco Ltd. in March. and in April the Australian company Gourmet Food Holdings Pty Ltd.

Mondelez’s above-market dividend yield was never lost. It recently returned just over 2%, 60 basis points (or 0.6%) better than that SPDR S&P 500 ETF Trust (SPY).

MDLZ has not lost the “Buy” rating that our Weiss Ratings System has given for more than two years. The company continues to buy back its own shares, including more than $ 1 billion in the last quarter.

The story goes on

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All of these factors helped catapult MDLZ to the top of my Bedrock Income portfolio screening system this month. Better prospects make this food company an appetizing destination. My recommendation? Get back on board; let’s scale back down.

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Janet Smith