Wednesday, November 1, 2023

On November 1, 2023, we reported our third quarter 2023 results.

"We delivered strong third quarter results that reinforce the durability of our categories, strength of our brands and geographies, and consistency of our execution. All regions delivered strong revenue growth with double-digit profitability growth, underpinned by strong volume/mix performance," said Dirk Van de Put, Chairman and Chief Executive Officer. "We believe the best remains ahead as we strengthen and reshape our portfolio, substantially reinvest in our iconic brands, and continue developing best-in-class capabilities in key enablers such as digital and revenue growth management to further drive high-quality, sustainable growth for years to come. Our strong year-to-date performance and category attractiveness provide confidence to again raise both our net revenue and earnings outlook for the year."

Third Quarter Highlights

• Net revenues increased +16.3% driven by Organic Net Revenue¹ growth of +15.7% with strong +3.8pp Volume/Mix performance, Volume/Mix positive across all regions
• Diluted EPS was $0.72, up +84.6%; Adjusted EPS¹ was $0.82, up +16.7% on a constant currency basis
• Year-to-date cash provided by operating activities was $3.2 billion; Free Cash Flow¹ was $2.4 billion, up +$0.5 billion vs prior year
• Return of capital to shareholders was $2.2 billion in the first nine months of the year
• Closed the divestiture of our developed market gum business for $1.4 billion
• Raising Organic Net Revenue outlook to 14% to 15% and Adjusted EPS growth outlook to ~16%

For more information, see our press release here.

1. Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross Profit margin), Adjusted Operating Income (and Adjusted Operating Income margin), Adjusted EPS, Free Cash Flow and presentation of amounts in constant currency are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of the press release for more information.