[Management View]
Mondelez management highlighted the challenges in North America, with a 3% decline in biscuit volumes and ongoing retailer destocking. However, they emphasized strong performance in emerging markets, particularly Brazil, India, and Mexico, which reported double-digit growth. The company plans to implement incremental pricing in North America to counter higher input costs, especially cocoa.

[Outlook]
The company reaffirmed its full-year guidance, despite no expected improvement in U.S. consumer sentiment. Mondelez plans to increase media spending in chocolate and U.S. brands next year to support category volumes. They are also monitoring elasticity closely across categories and markets.

[Financial Performance]
Mondelez reported a 6%-7% decline in global chocolate volumes, attributed to significant price increases. Emerging markets showed sustained volume expansion, while North American biscuit volumes declined by 3%. The company maintained its full-year outlook, citing strong global balance and resilience in European markets.

[Q&A Highlights]
1. Question: How does Mondelez plan to address the additional weakness in North America and drive growth?
Answer: Mondelez plans to implement incremental pricing in North America, focusing on cost control and productivity. They aim to boost profitability in Q3 and pursue opportunities in alternate channels like club and dollar stores.

2. Question: What are the key factors affecting the second half outlook, and how is Mondelez managing them?
Answer: Mondelez is vigilant about chocolate elasticity and U.S. consumer confidence. They have accounted for these factors in their outlook and are cautious about projecting immediate changes.

3. Question: How is Mondelez approaching cocoa and cocoa butter costs for 2026?
Answer: Mondelez sees favorable cocoa market fundamentals and expects prices to come down. They are considering hedging strategies and anticipate a material benefit from lower cocoa butter costs.

4. Question: What are the regional dynamics affecting the second half outlook?
Answer: Mondelez sees good momentum in emerging markets and expects more pricing in Europe. North America remains weak, but Mondelez is cautious and plans to execute with excellence.

5. Question: How is Mondelez balancing debt and share repurchases?
Answer: Mondelez is pragmatic about share repurchases, considering forex impacts on debt. They have been buying back shares at compelling prices and see it as a good capital deployment decision.

6. Question: What is the impact of GLP-one on North American volumes?
Answer: Mondelez sees no real impact from GLP-one on volumes, attributing changes to economic factors. They do not expect significant effects from GLP-one in the future.

7. Question: What drove retailer destocking in North America, and how will it recover?
Answer: Retailer destocking was driven by cash flow management and a slowdown in consumption. Mondelez expects Q3 to be clean regarding retailer inventory.

[Sentiment Analysis]
Analysts expressed concerns about North American challenges but acknowledged Mondelez's strategic focus on emerging markets and pricing actions. Management maintained a cautious yet optimistic tone, emphasizing resilience and strategic initiatives.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-------------------------|---------|---------|
| Biscuit Volume (NA) | -3% | N/A |
| Global Chocolate Volume | -6% to -7% | N/A |
| Emerging Markets Growth | Double-digit | N/A |

[Risks and Concerns]
Key risks include continued volume pressure in North America, unpredictable events affecting guidance, and potential impacts from economic factors like inflation and tariffs. Mondelez is cautious about assuming demand rebounds without clearer signals.

[Final Takeaway]
Mondelez faces challenges in North America, with declining biscuit volumes and retailer destocking. However, strong performance in emerging markets and strategic pricing actions provide growth opportunities. The company remains vigilant about market dynamics and is prepared to adjust strategies as needed. Investors should monitor Mondelez's execution in North America and its ability to capitalize on emerging market growth.