Mondelez International Inc (MDLZ) Q3 2018 Earnings Conference Call Transcript
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Logo of jester cap with thought bubble.

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Mondelez International Inc (NASDAQ: MDLZ)
Q3 2018 Earnings Conference Call
Oct. 29, 2018, 5:00 p.m. ET

Contents:

  • Prepared Remarks

  • Questions and Answers

  • Call Participants

Prepared Remarks:

Operator

Good day and welcome to the Mondelez International Third Quarter 2018 Earnings Conference Call. Today's call is scheduled to last about one hour, including remarks by Mondelez management and the question-and-answer session. (Operator Instructions) I'd now like to turn the call over to Mr. Shep Dunlap, Vice President, Investor Relations for Mondelez. Please go ahead, sir.

Shep Dunlap -- Vice President, Investor Relations

Thank you. Good afternoon and thanks for joining us. With me today are Dirk Van de Put, our Chairman and CEO, and Luca Zaramella, our CFO. Earlier today we sent out our press release and presentation slides which are available on our website mondelezinternational.com/investors.

During this call we'll make forward-looking statements about the Company's performance. These statements are based on how we see things today. Actual results may differ materially due to risks and uncertainties. Please refer to the cautionary statements and risk factors contained in our 10-K and 10-Q filings for more details on our forward-looking statements.

Some of today's prepared remarks include non-GAAP financial measures. Today we will be referencing our non-GAAP financial measures, unless otherwise noted. You can find the GAAP and non-GAAP reconciliations within our earnings release and at the back of the slide presentation. And with that, I'll now turn the call over to Dirk.

Dirk Van de Put -- Chairman & Chief Executive Officer

Thank you. Shep, and good afternoon. We delivered very solid results for the third quarter. We continued to build momentum on the top line while increasing both adjusted gross and operating margin. And we delivered another double-digit increase in adjusted earnings per share. Our third quarter organic net revenue grew 1.2%, which includes 60 basis points of headwind for one-time malware effects last year and it was supported by positive volume growth.

We also delivered adjusted EPS growth of 18% at constant currency and solid free cash flow, which is now $1.1 billion year-to-date. As I laid out at our Investors Day last month, we are excited about the growth potential of snacking. Vibrant categories like chocolate and biscuits are growing faster than other areas in food.

I want to thank many of you for attending and giving us an opportunity to share our vision and priorities around growth, execution and culture. Mondelez is well positioned to lead the future of snacking, thanks to our unique portfolio of iconic global and local brand, and our advantaged geographic footprint. Nearly 40% of our revenues come from fast growing emerging markets, which we expect will disproportionately contribute to future snacking growth.