“We had a solid start to the year despite challenging market conditions,” said Irene Rosenfeld, Chairman and CEO. “We delivered both top-line organic growth and strong margin expansion in the quarter, while also making critical investments for our future. We remain confident in and committed to our balanced strategy for both top- and bottom-line growth, continuing to focus on what we can control to deliver long-term value creation for our shareholders.” The operating income margin was 13.1%, up 190 basis points, the adjusted operating income margin was 16.8%, up 90 basis points. Diluted EPS was $0.41, up 17%, adjusted EPS was $0.53, up 6% on a constant-currency basis.
Mondelēz International provides guidance on a non-GAAP basis, as the company cannot predict some elements that are included in reported GAAP results, including the impact of foreign exchange. Refer to the Outlook section in the discussion of non-GAAP financial measures below for more details. The company continues to expect Organic Net Revenue to increase at least 1 % in 2017 and Adjusted Operating Income margin in the mid-16 % range. The company also expects double-digit Adjusted EPS growth on a constant-currency basis. The company estimates currency translation would reduce net revenue growth by approximately 1 % and Adjusted EPS by approximately $0.023. In addition, the company expects Free Cash Flow of approximately $2 billion.