1415 ET - Mondelez International just posted its best organic sales performance since 4Q 2023, but margin pressure from inflation is leaving investors with a bitter aftertaste, Gimme Credit analyst Dave Novosel says in a research note. Operating margins dropped substantially because of higher input cost inflation, mainly from cocoa, the analyst says. Unfavorable mix shifts hurt margins too, he says. Margins will probably continue to face pressure in the second half due to cocoa inflation, Novosel says. The company also took on nearly $2 billion of debt in the first half of the year to help it fund more than $3 billion in stock buybacks this year, he says. The additional debt and weaker Ebitda will likely combine to raise the company's leverage this year, the analyst says. Shares fall 5% to $66.25. (dean.seal@wsj.com)

(END) Dow Jones Newswires

July 30, 2025 14:16 ET (18:16 GMT)

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