Investing.com -- Mondelez (NASDAQ:MDLZ) International Inc (BMV:MDLZ) reported first quarter 2025 earnings that surpassed analyst expectations, despite facing significant cocoa cost inflation. The snack food giant’s stock edged down 1% following the announcement.

The Oreo-maker posted adjusted earnings per share of $0.74, exceeding the analyst consensus of $0.66. However, this represented an 18.3% decline YoY on a constant currency basis. Revenue for the quarter came in at $9.31 billion, slightly below the $9.34 billion estimate, but up 0.2% from the previous year. Organic net revenue growth was 3.1%, driven by higher pricing that offset a 3.5% decline in volume/mix.

The company reaffirmed its 2025 outlook, projecting organic net revenue growth of approximately 5%. However, Mondelez expects adjusted EPS to decline about 10% on a constant currency basis, citing "unprecedented cocoa cost inflation" as the primary factor.

"We delivered solid Q1 2025 results in line with our expectations, driven by strong execution of our growth strategy while navigating unprecedented cocoa cost inflation," said Dirk Van de Put, Chair and Chief Executive Officer.

Mondelez’s gross profit margin decreased 2,500 basis points to 26.1%, primarily due to unfavorable mark-to-market impacts from commodity and currency derivatives, as well as higher raw material and transportation costs.

The company returned $2.1 billion to shareholders through cash dividends and share repurchases during the quarter. Mondelez maintains its forecast of $3+ billion in free cash flow for 2025.

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