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PEP · PEPSICO INC

34 filings

10-K

PEP 10-K Annual Reports

PEPSICO INC - 34 annual reports

Filing record · 2016–202610-K1110-Q338-K145

2025
PEPSICO INC Annual Report, Year Ended Dec 27, 2025
PepsiCo, Inc. (PEP) has released its 2025 Annual Report (10-K), detailing a year marked by efforts to navigate macroeconomic challenges including inflation, supply chain disruptions, and evolving consumer preferences. The company demonstrated resilience, with reported net revenue increasing by 2% to $93.9 billion. However, operating profit saw a decline of 11% to $11.5 billion, primarily attributed to increased operating costs, specific impairment charges, and the impact of higher commodity costs, partially offset by productivity savings and effective net pricing. Strategic initiatives remain a focus, including efforts to reignite North American business performance through integration and brand investment, and expanding international market presence. The company continues to advance its pep+ transformation, emphasizing portfolio reshaping towards healthier options, sustainable packaging, and digital integration. Despite a challenging environment, PepsiCo is committed to returning value to shareholders through a 4% increase in its annualized dividend and a new $10 billion share repurchase program, signaling confidence in its long-term strategy.
Feb 3, 2026
2024
PEPSICO INC Annual Report, Year Ended Dec 28, 2024
PepsiCo, Inc. (PEP) reported solid financial performance in its fiscal year ending December 28, 2024. The company navigated a challenging operating environment, characterized by ongoing supply chain disruptions, inflation, and evolving consumer preferences, by focusing on productivity, operational optimization, and strategic brand investments. The company's diversified portfolio across beverages and convenient foods, along with its global reach, contributed to its resilience. PepsiCo highlighted its continued commitment to its pep+ (PepsiCo Positive) transformation, emphasizing sustainability initiatives and portfolio evolution towards healthier options. The company also announced a 5% increase in its annualized dividend, signaling confidence in its financial health and commitment to shareholder returns, supported by robust free cash flow generation.
Feb 4, 2025
2023
PEPSICO INC Annual Report, Year Ended Dec 30, 2023
PepsiCo, Inc. demonstrated resilience in its 2023 fiscal year, navigating global economic uncertainties and geopolitical challenges. The company reported a net revenue increase of 6% to $91.5 billion and a 4% rise in operating profit to $12.0 billion. This growth was driven by effective net pricing across its diverse portfolio of beverages and convenient foods, alongside productivity savings. Despite facing increased commodity, transportation, and labor costs, PepsiCo's "pep+" strategy continues to guide its end-to-end business transformation with a focus on sustainability. Key financial actions included a 7% increase in the annualized dividend and a planned return of approximately $8.2 billion to shareholders in 2024 through dividends and share repurchases. The company also managed its capital structure effectively, with a strong cash generation capability and a robust liquidity position. While facing headwinds such as the conflict in Ukraine and inflationary pressures, PepsiCo's diversified global presence and brand strength position it to manage these challenges and continue delivering value to its shareholders.
Feb 9, 2024
2022
PEPSICO INC Annual Report, Year Ended Dec 31, 2022
PepsiCo, Inc. reported robust performance in its 2022 fiscal year, demonstrating resilience amidst a challenging global economic environment. The company achieved significant net revenue growth, driven by effective net pricing and organic volume expansion across its diverse portfolio of beverages and convenient foods. Despite facing inflationary pressures, supply chain disruptions, and geopolitical uncertainties stemming from the conflict in Ukraine, PepsiCo successfully navigated these headwinds, supported by its strategic "pep+" transformation initiative, which emphasizes sustainability and human capital. Key financial highlights include strong revenue growth across most segments, with notable contributions from Frito-Lay North America (FLNA) and PepsiCo Beverages North America (PBNA). While operating profit saw an increase, operating margins experienced a slight decline due to various one-time charges, including impairments related to intangible assets and the impact of the Russia-Ukraine conflict. The company continued its commitment to returning value to shareholders through increased dividends and share repurchases, signaling confidence in its future financial health and operational capabilities. Investors will note the strategic divestiture of the juice portfolio, which generated a significant gain, and continued investments in innovation and sustainability initiatives.
Feb 9, 2023
2021
PEPSICO INC Annual Report, Year Ended Dec 25, 2021
PepsiCo, Inc.'s 2021 Form 10-K highlights a year of robust growth, driven by strong net revenue and operating profit increases, reflecting effective pricing strategies and volume growth across its diverse segments. The company's strategic "pep+" initiative continues to guide its transformation towards sustainability and value creation, focusing on positive agriculture, a sustainable value chain, and healthier consumer choices. Despite facing global economic volatility, supply chain disruptions, and inflationary pressures, PepsiCo demonstrated resilience, supported by its diversified brand portfolio and global reach. The company also remains committed to shareholder returns, announcing a significant increase in its annualized dividend and a substantial share repurchase program. Key financial performance indicators show positive trends, with notable organic revenue growth and operating profit expansion. Investments in innovation, productivity, and sustainability are central to PepsiCo's forward-looking strategy. The divestiture of certain juice brands (Tropicana, Naked) in early 2022 is expected to streamline the portfolio and enhance focus. While acknowledging ongoing risks such as commodity cost inflation and supply chain challenges, PepsiCo's management expresses confidence in its ability to navigate these headwinds and continue delivering value to shareholders.
Feb 10, 2022
2020
PEPSICO INC Annual Report, Year Ended Dec 26, 2020
PepsiCo, Inc. reported strong net revenue growth of 5% for the fiscal year ending December 26, 2020, reaching $70.4 billion. Despite the revenue increase, operating profit saw a slight decrease of 2% to $10.1 billion, primarily impacted by costs associated with the COVID-19 pandemic, which reduced operating profit by 7 percentage points. The company successfully navigated a challenging year by focusing on its 'Winning with Purpose' strategy, emphasizing agility in its operations, and continuing investments in digital capabilities like e-commerce. Significant acquisitions in 2020, including Rockstar Energy Beverages, Pioneer Foods, and Be & Cheery, are expected to bolster future growth and market presence across key geographies. PepsiCo demonstrated resilience by maintaining its dividend payments and repurchasing shares, returning approximately $5.9 billion to shareholders in 2021 through dividends and buybacks. The company is committed to long-term sustainable growth through a strategy of becoming Faster, Stronger, and Better, focusing on innovation, cost management, and integrating purpose into its business. The company's diverse portfolio across beverages and convenient foods, coupled with its global reach and strong brand recognition, positions it well to address evolving consumer preferences and market dynamics, while managing the ongoing impacts of the global pandemic.
Feb 11, 2021
2019
PEPSICO INC Annual Report, Year Ended Dec 28, 2019
PepsiCo Inc. demonstrated resilience in its 2019 fiscal year, reporting a 4% increase in net revenue to $67.2 billion. The company's strategic focus on becoming "Faster, Stronger, and Better" through consumer-centricity, capability transformation, and sustainability initiatives continued to drive its performance. Despite facing challenges like shifting consumer preferences and a competitive landscape, PepsiCo maintained its global leadership in convenient foods and beverages. Financially, the company reported operating profit of $10.3 billion, with a slight decrease in operating profit margin. Key financial activities included significant returns to shareholders through dividends and share repurchases totaling $8.3 billion in 2019, and continued investment in strategic acquisitions like SodaStream. The company also highlighted its ongoing productivity initiatives aimed at cost savings and reinvestment for topline growth. Looking ahead, PepsiCo expressed confidence in its ability to navigate market complexities and deliver sustainable growth.
Feb 13, 2020
2018
PEPSICO INC Annual Report, Year Ended Dec 29, 2018
PepsiCo, Inc.'s 2018 Form 10-K highlights a year of resilient performance with a focus on "Winning with Purpose." The company navigated a dynamic market by strengthening its diverse brand portfolio across snacks, beverages, and foods, supported by ongoing productivity initiatives aimed at improving operational efficiency and reducing costs. Strategic investments in e-commerce capabilities and innovation in healthier product options were key themes. While facing some cost pressures from commodities and operating expenses, PepsiCo demonstrated effective net pricing and continued to return value to shareholders through dividends and share repurchases. The company's geographic segmentation shows varied performance, with North America Beverages experiencing a decline in operating profit due to cost increases, while other segments like Frito-Lay North America and Latin America showed growth. The acquisition of SodaStream in late 2018 is a notable strategic move to bolster its "beyond the bottle" offerings. The company's robust financial position and cash-generating capabilities are expected to support future growth and capital allocation strategies.
Feb 15, 2019
2017
PEPSICO INC Annual Report, Year Ended Dec 30, 2017
PepsiCo, Inc. (PEP) reported its 2017 annual results, highlighting a year of growth driven by productivity initiatives and effective net pricing across its diverse portfolio of food and beverage brands. The company generated consolidated net revenue of $63.5 billion, a 1% increase over the prior year, with operating profit rising by 7% to $10.5 billion. Key drivers of this performance included significant cost reductions from productivity programs and strategic pricing actions. While the company navigated various business risks, including macroeconomic volatility and shifting consumer preferences towards healthier options, it demonstrated resilience. The report also detailed the impact of the Tax Cuts and Jobs Act of 2017, which resulted in a provisional net tax expense for the year. PepsiCo remains focused on its "Performance with Purpose" strategy, emphasizing innovation, e-commerce expansion, and sustainability initiatives to drive long-term shareholder value.
Feb 13, 2018
2016
PEPSICO INC Annual Report, Year Ended Dec 31, 2016
PepsiCo, Inc.'s 2016 10-K filing reveals a company navigating a dynamic market landscape. Despite a slight dip in net revenue year-over-year, largely due to unfavorable foreign exchange, the company demonstrated resilience with a significant increase in operating profit and diluted earnings per share. This growth was propelled by effective net pricing, volume expansion across key segments like Frito-Lay North America and North America Beverages, and substantial cost savings from productivity initiatives. The company continues to emphasize its 'Performance with Purpose' strategy, focusing on healthier product innovation, sustainability, and community engagement. Key risk factors identified include shifts in consumer preferences towards healthier options, regulatory changes (such as potential taxes on sugary beverages), and geopolitical instability, all of which PepsiCo is actively addressing through portfolio adjustments and strategic investments in research and development. The company also highlights its strong liquidity position and ongoing commitment to returning capital to shareholders through dividends and share repurchases.
Feb 15, 2017
2015
PEPSICO INC Annual Report, Year Ended Dec 26, 2015
PepsiCo's 2015 10-K filing indicates a year of significant challenges and strategic adjustments. The company experienced a decline in net revenue and operating profit, largely attributed to unfavorable foreign exchange rates and the substantial impairment charge related to its Venezuelan operations. Despite these headwinds, PepsiCo demonstrated resilience through effective net pricing, continued productivity initiatives yielding over $1 billion in savings, and a consistent return of capital to shareholders via dividends and share repurchases. Management's focus remains on upgrading commercial capabilities, building new competencies in areas like e-commerce, and increasing cost efficiencies to navigate a volatile global economic and regulatory landscape. The company is also actively responding to evolving consumer preferences, particularly the demand for healthier products, by investing in product reformulation and portfolio expansion. Investors should note the significant impact of the Venezuelan deconsolidation and impairment charges on the 2015 financial results, which, when excluded, reveal underlying operational strengths and growth. The company continues to invest in innovation and brand building, with R&D expenses increasing. Key segments like Frito-Lay North America and North America Beverages showed growth in net revenue and operating profit, highlighting areas of operational strength. However, segments like Latin America and Europe/Sub-Saharan Africa faced significant challenges, including currency devaluation and market-specific economic instability.
Feb 11, 2016
2014
PEPSICO INC Annual Report, Year Ended Dec 27, 2014
PepsiCo, Inc. reported steady performance in its 2014 10-K filing, with net revenue largely flat year-over-year at $66.7 billion. The company operates across six reportable segments, including Frito-Lay North America (FLNA) and PepsiCo Americas Beverages (PAB), which are its largest segments by revenue. Despite facing global economic volatility and currency fluctuations, particularly in Venezuela and Russia, PepsiCo demonstrated resilience through strong brand recognition, productivity initiatives, and a focus on innovation. Key strategic priorities for the company include global expansion, broadening its product portfolio with a focus on healthier options, adapting to changing customer channels like e-commerce, and maintaining productivity savings. The company returned significant value to shareholders through dividends and share repurchases, signaling a commitment to shareholder returns while navigating a dynamic market landscape.
Feb 12, 2015
2013
PEPSICO INC Annual Report, Year Ended Dec 28, 2013
PepsiCo's 2013 10-K filing highlights a year of continued strategic investment in its core brands and innovation, alongside a robust productivity program that yielded over $900 million in savings. The company demonstrated resilience, with net income attributable to PepsiCo increasing by 9% and diluted EPS growing by 10%. Key initiatives included expanding its portfolio of more nutritious products, enhancing digital capabilities, and strengthening its global supply chain to address geopolitical and social instability. The company also returned $6.4 billion to shareholders through share repurchases and dividends, signaling a commitment to shareholder value. Looking ahead, PepsiCo outlined a strategy focused on continued investment in developing and emerging markets, broadening its product portfolio with healthier options, further developing digital tools, protecting its supply chain, and managing commodity volatility. The company's 'Performance with Purpose' goal remains central, emphasizing sustained value creation through a diverse product range, environmental responsibility, employee well-being, and community investment.
Feb 14, 2014
2012
PEPSICO INC Annual Report, Year Ended Dec 29, 2012
PepsiCo's 2012 10-K filing reflects a company navigating a complex global market with a diversified portfolio of food and beverage brands. While facing challenges such as unfavorable foreign exchange rates and rising commodity costs, PepsiCo demonstrated resilience through strategic initiatives and a focus on "Performance with Purpose." The company continued to invest in its core brands, drive innovation with new product launches like Pepsi Next, and implement a multi-year productivity program aimed at cost savings. Significant capital was returned to shareholders through dividends and share repurchases, highlighting a commitment to shareholder value. The report also details PepsiCo's operational structure across six reportable segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), Latin America Foods (LAF), PepsiCo Americas Beverages (PAB), Europe, and Asia, Middle East and Africa (AMEA). Management emphasized strategic priorities for future growth, including reinforcing existing value drivers, migrating the portfolio towards high-growth categories and markets, accelerating the benefits of "Power of One" initiatives, harmonizing internal processes, and building top talent. The company's robust risk management framework and proactive approach to market risks, such as commodity price volatility and foreign exchange fluctuations, are also key takeaways for investors.
Feb 21, 2013
2011
PEPSICO INC Annual Report, Year Ended Dec 31, 2011
PepsiCo's 2011 10-K highlights a year of strategic growth and integration, marked by significant acquisitions and a forward-looking productivity plan. The company demonstrated robust revenue growth across its diverse segments, particularly in Latin America Foods and Asia, Middle East & Africa. The integration of The Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) in 2010 continued to bolster the beverage segment, while the acquisition of Wimm-Bill-Dann Foods (WBD) in Russia significantly expanded the European segment. Management focused on five strategic imperatives: expanding the macrosnacks portfolio globally, sustainably growing the beverage business, building the nutrition business, capitalizing on snack-beverage consumption synergy, and maintaining prudent financial management. The company announced increased investment in brands and marketing for 2012 and is implementing a multi-year productivity program aimed at enhancing cost-competitiveness and funding future innovation. Despite economic uncertainties, PepsiCo maintained a strong balance sheet and continued its commitment to shareholder returns through dividends and share repurchases.
Feb 27, 2012
2010
PEPSICO INC Annual Report, Year Ended Dec 25, 2010
PepsiCo, Inc. reported its fiscal year 2010 results, highlighting significant strategic progress and the successful integration of major acquisitions. The company completed the acquisitions of The Pepsi Bottling Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS) in February 2010, which significantly expanded its beverage distribution network and contributed substantially to revenue growth. PepsiCo also announced its acquisition of a controlling stake in Wimm-Bill-Dann Foods OJSC (WBD) in Russia, further diversifying its international presence. These strategic moves underscore PepsiCo's commitment to strengthening its global position in both food and beverage categories. Financially, the company navigated a dynamic economic environment, demonstrating resilience. The report details a focus on strategic imperatives such as building its macro snack portfolio, sustainably growing its beverage business, enhancing customer value through "Power of One," expanding its nutrition business, cherishing its employees, and achieving excellent performance. Investors should note the significant impact of acquisition-related charges and integration costs on the current year's results, alongside the substantial gains from previously held equity interests in PBG and PAS.
Feb 18, 2011
2009
PEPSICO INC Annual Report, Year Ended Dec 26, 2009
PepsiCo, Inc.'s 2009 10-K report highlights a company navigating a dynamic global economic landscape while strategically positioning for future growth. Despite a challenging economic environment, PepsiCo demonstrated resilience, with net revenue remaining stable year-over-year, supported by effective net pricing and strategic acquisitions. The report prominently features the pending mergers with The Pepsi Bottling Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS), a significant move aimed at consolidating North American bottling operations, enhancing supply chain efficiency, and driving profitability. Management emphasized a "Performance with Purpose" strategy, balancing financial growth with social and environmental responsibility, including investments in healthier product portfolios and sustainable practices. Key financial discussions revolve around managing commodity costs through hedging, the impact of foreign currency fluctuations, and the operational performance across various divisions, including Frito-Lay North America (FLNA) and PepsiCo Americas Beverages (PAB). The company maintained strong liquidity and continued its commitment to shareholder returns through dividends and share repurchases, underscoring its long-term financial health and strategic outlook.
Feb 22, 2010
2008
PEPSICO INC Annual Report, Year Ended Dec 27, 2008
PepsiCo, Inc. reported its 2008 fiscal year results on February 19, 2009. The company, a global leader in beverages, snacks, and foods, navigated a challenging economic environment marked by the global economic crisis. Despite these headwinds, PepsiCo demonstrated resilience, with net revenue increasing by 10% to $43.25 billion. The company's "Performance with Purpose" strategy continued to guide its operations, focusing on sustainable growth and community contribution. Key strategies for 2009 included revitalizing the North American beverage business, broadening its global product portfolio through innovation and acquisitions, and managing the impacts of the economic downturn through cost-saving initiatives like the "Productivity for Growth" program. The company also highlighted its commitment to expanding international markets and maintaining its focus on sustainable growth practices. Financially, while operating profit saw a slight decrease of 3% to $6.94 billion, impacted by restructuring charges and mark-to-market losses on commodity hedges, the company maintained strong operational cash flow of $7.0 billion. PepsiCo continued to return capital to shareholders through dividends and share repurchases, demonstrating confidence in its business model amidst economic uncertainty. The company's diversified portfolio across snacks and beverages, along with its strong international presence, provided a foundation for its performance.
Feb 19, 2009
2007
PEPSICO INC Annual Report, Year Ended Dec 29, 2007
PepsiCo, Inc. (PEP) reported strong performance in its 2007 fiscal year, driven by a 12% increase in net revenue to $39.5 billion and a 10% rise in operating profit to $7.2 billion. This growth was fueled by a combination of volume increases across its diverse portfolio of snacks and beverages, effective net pricing strategies, and contributions from acquisitions. The company continues to execute its 'Performance with Purpose' strategy, focusing on sustainable growth and community engagement. Internationally, PepsiCo demonstrated robust growth, with its International division seeing a 22% net revenue increase, largely attributed to strong volume in emerging markets and favorable foreign currency movements. North American divisions also showed positive trends, with Frito-Lay North America achieving 7% revenue growth and PepsiCo Beverages North America increasing revenue by 7%, although beverage volume saw a slight decline due to a decrease in carbonated soft drinks (CSDs) offset by growth in non-carbonated beverages. The company is actively managing its capital structure, returning significant value to shareholders through dividends and share repurchases. PepsiCo also announced a strategic organizational realignment into three new business units to better manage growth and develop global leadership talent, which will be reflected in future segment reporting. Management expressed confidence in navigating the evolving economic landscape, emphasizing productivity initiatives and judicious pricing to offset rising commodity costs.
Feb 15, 2008
2006
PEPSICO INC Annual Report, Year Ended Dec 30, 2006
PepsiCo Inc.'s 2006 10-K filing reveals a robust year of growth and strategic initiatives. The company reported an 8% increase in net revenue, reaching $35.1 billion, driven by volume gains and effective net pricing across all divisions. Operating profit saw a 9% increase, with margins slightly improving to 18.3%. Key growth drivers included strong performance in PepsiCo International (up 14% in net revenue), while North American divisions showed more moderate growth. The company is actively managing its portfolio and responding to consumer trends, particularly regarding health concerns, by reformulating products and introducing new, healthier options. Innovation remains a core growth strategy, with new product introductions contributing significantly to overall sales. PepsiCo is also focused on operational efficiencies, including manufacturing network consolidation and business process transformation, including its SAP implementation. The company is committed to returning value to shareholders through dividends and share repurchases, underpinned by a strong cash-generating capability.
Feb 20, 2007
2005
PEPSICO INC Annual Report, Year Ended Dec 31, 2005
PepsiCo, Inc. reported strong performance for the fiscal year ended December 31, 2005, demonstrating robust net revenue growth of 11% to $32.6 billion and a 13% increase in total operating profit to $5.9 billion. This growth was driven by a balanced contribution from volume increases (6 percentage points), effective net pricing (3 percentage points), and favorable foreign currency movements (over 1 percentage point). The company's diversified business model, comprising Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Foods North America, contributed positively to this expansion. International operations emerged as the largest revenue generator and a key growth driver, with a deliberate strategy focused on scale in key markets and tailored product offerings. The company also highlighted its commitment to health and wellness, seeing significant growth in its 'Smart Spot' eligible products as a response to consumer preferences and the "obesity epidemic." Strategic acquisitions of smaller, synergistic businesses also played a role in expanding market presence and categories. Despite facing input cost pressures from commodities and energy, PepsiCo managed these challenges through productivity programs and hedging strategies, while actively returning capital to shareholders through dividends and share repurchases.
Feb 27, 2006
2004
PEPSICO INC Annual Report, Year Ended Dec 25, 2004
PepsiCo, Inc.'s 2004 Form 10-K highlights a robust fiscal year with strong revenue and profit growth driven by its diverse portfolio of snacks and beverages across its four key divisions: Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Foods North America. The company emphasized its strategic focus on "sustainable growth" through continued investment in its "big, muscular brands," innovation, and powerful go-to-market systems, underscoring the "Power of One" initiative to deliver customized solutions for retail partners. Financially, PepsiCo demonstrated healthy operating profit and margin expansion, supported by volume growth and effective net pricing, despite increased commodity costs. The company also highlighted its commitment to shareholder returns through a significant share repurchase program and dividend payments. PepsiCo is also proactively addressing evolving consumer preferences by investing in "health and wellness" initiatives, exemplified by the "Smart Spot" trademark, aiming to balance its traditional "fun-for-you" offerings with better-for-you alternatives. The company's international segment showed particularly strong growth, becoming its largest division by revenue.
Feb 28, 2005
2003
PEPSICO INC Annual Report, Year Ended Dec 27, 2003
PepsiCo's 2003 10-K filing reveals a company demonstrating robust revenue growth, driven by strong performance across its core divisions: Frito-Lay North America, PepsiCo Beverages North America, and PepsiCo International. The company emphasized its commitment to health and wellness trends, highlighting innovation in "better-for-you" and "good-for-you" products and significant progress in eliminating trans fats. Management also addressed the increasing power of large retailers like Wal-Mart, expressing confidence in PepsiCo's ability to maintain strong partnerships through its product pull and direct-store-delivery system. Financially, PepsiCo showcased healthy operating profit growth and a reduced annual tax rate, partly due to favorable IRS agreements. The company continued its commitment to shareholder returns through dividends and share repurchases, underscoring its strong cash flow generation. Strategic initiatives like the Business Process Transformation program aim to further enhance efficiency and cost savings across the enterprise. PepsiCo also voluntarily adopted the fair value method for stock option accounting, impacting prior period financial statements.
Mar 4, 2004
2002-A
PEPSICO INC Annual Report (Amendment), Year Ended Dec 28, 2002
This is Amendment No. 1 (Form 10-K/A) to PepsiCo's annual report for the fiscal year ended December 28, 2002. It amends only Item 14, Controls and Procedures, and contains no financial statements, segment results, or operating data. The original 10-K was filed March 7, 2003. The signatures and Section 906 certifications are dated May 28, 2003, so the filing date is likely May 28 or 29. Investors looking for revenue, earnings, cash flow, or balance sheet information should consult the original annual report. The amended Item 14 states that the CEO and CFO evaluated disclosure controls and procedures within 90 days before the filing and concluded they are effective in alerting them on a timely basis to material information. It also states that no significant changes in internal controls occurred after that evaluation. The amendment was filed alongside Section 906 certifications from Chairman and CEO Steven S. Reinemund and President and CFO Indra K. Nooyi. These certifications were required under the Sarbanes-Oxley Act of 2002, which had recently taken effect. The cover page shows 1,718,625,330 shares of common stock outstanding as of February 22, 2003, and an aggregate market value of approximately $67.1 billion held by non-affiliates as of that date. PepsiCo was classified as an accelerated filer. The governance and compensation information incorporated by reference from the May 7, 2003 proxy statement is also not part of this amendment.
May 29, 2003
2002
PEPSICO INC Annual Report, Year Ended Dec 28, 2002
PepsiCo, Inc.'s 2002 10-K filing reveals a company demonstrating robust growth and strategic focus. The company reported a significant increase in net sales, up 7% to $25.1 billion, and operating profit surged by 18% to $4.7 billion. This strong performance was driven by volume gains across all divisions, particularly in beverages and snacks, supported by strategic pricing and cost management. The integration of the Quaker merger continued to yield positive results, with projected synergies expected to reach $400 million annually by 2004. Key financial highlights include a substantial improvement in operating profit margin, up 1.7 percentage points, attributed to merger synergies, productivity initiatives, and reduced merger-related costs. The company also reported a strong increase in net income, up 24% to $3.3 billion, translating to a 26% rise in diluted earnings per share. PepsiCo continued to return value to shareholders through consistent dividend payments and an aggressive share repurchase program, underscoring its commitment to enhancing shareholder value.
Mar 7, 2003
2001
PEPSICO INC Annual Report, Year Ended Dec 29, 2001
PepsiCo's fiscal 2001 10-K reflects a transformative year, anchored by the August 2, 2001 merger with The Quaker Oats Company, accounted for as a pooling-of-interests with all prior periods restated. Reported net sales rose 6% to $26.9 billion and reported operating profit rose 5% to $4.0 billion, but the headline figures are depressed by $356 million of merger-related costs and $31 million of other impairment and restructuring charges. Excluding these items and the 2000 fifty-third week, comparable net sales grew 7%, comparable operating profit grew 11%, and comparable operating margin expanded 0.7 points to 16.4%. Comparable net income rose 15% to $3.0 billion, or $1.66 per diluted share, versus reported net income of $2.66 billion, or $1.47 per diluted share. Growth was broad-based. Worldwide Snacks (Frito-Lay North America and International) and Pepsi-Cola North America, boosted by the SoBe acquisition, Mountain Dew Code Red, and Sierra Mist, were the primary drivers. Quaker Foods North America was flat in sales but grew operating profit 6%. Balance sheet strength was evident: long-term debt fell to $2.65 billion from $3.01 billion, operating cash flow was $4.2 billion, and the company returned cash through $994 million of dividends and $1.7 billion of share repurchases. Management guided that merger synergies could reach $400 million annually by 2005, with up to $175 million achieved by the end of 2002, and that adoption of EITF 01-9 will reduce reported net sales by roughly $3.4 billion in 2001 (with a corresponding SG&A reduction, so operating profit is unaffected). Investors should note several watch items: the reclassification of promotional payments under EITF 01-9 will materially lower reported sales in 2002, comparable and reported results diverge significantly because of merger costs, a $62 million impairment on the Turkish bottling investment, and foreign currency headwinds in Brazil and the United Kingdom. The company also disclosed an unconditional guarantee of $2.3 billion of Bottling Group LLC debt and commitments for additional obligations that may increase its ownership in bottlers.
Mar 20, 2002
2000
PEPSICO INC Annual Report, Year Ended Dec 30, 2000
PepsiCo's fiscal 2000 10-K (53-week year ended December 30, 2000) shows a business that grew comparable net sales 8% to $20.1 billion and comparable operating profit 12%, with comparable operating margin rising 0.5 points to 15.7%. Growth was driven by volume gains across all segments plus higher effective net pricing at Frito-Lay and Pepsi-Cola. Reported net income rose 6% to $2.18 billion, and diluted EPS reached $1.48 (comparable $1.45, up 18%), helped by a 1.4% reduction in average diluted shares. The fifty-third week added an estimated $294 million to sales, $62 million to operating profit and $0.03 to EPS, so underlying growth is somewhat lower than reported figures suggest. Note that the reported 2000 figures are not directly comparable to 1999 because the 1999 bottling deconsolidation moved Pepsi bottling operations to equity accounting. The most significant strategic development is the pending merger with The Quaker Oats Company, which would be accounted for as a pooling of interests. Quaker holders would receive 2.3 PepsiCo shares per Quaker share, capped at $105 per share, with roughly 315 million new PepsiCo shares issued (about 18% of post-merger shares outstanding). Expected transaction costs are about $100 million, and the deal is targeted to close in the first half of 2001, subject to shareholder and regulatory approvals; the FTC has requested additional information. The Board rescinded the share repurchase program in December 2000, so buybacks that had reached $1.43 billion in 2000 are paused. Balance sheet and liquidity remain solid: cash plus short-term investments total $1.33 billion, operating cash flow was $3.9 billion, and capital spending was $1.07 billion. Total debt, including short-term borrowings and long-term debt, is about $2.4 billion, down substantially from prior years.
Mar 15, 2001
1999-A
PEPSICO INC Annual Report (Amendment), Year Ended Dec 25, 1999
This document is Amendment No. 1 (Form 10-K/A) to PepsiCo, Inc.'s annual report for the fiscal year ended December 25, 1999. It was filed March 23, 2000, to amend the original Form 10-K (filed March 21, 2000) solely by replacing Exhibit 23, the auditor consent. It contains no financial statements, MD&A, segment results, risk factors, or other operating disclosures, so it does not support an analysis of PepsiCo's 1999 performance, financial condition, or outlook. The amendment does provide basic registrant information. PepsiCo is incorporated in North Carolina and headquartered in Purchase, New York. As of March 10, 2000, 1,443,515,702 shares of Capital Stock were outstanding, and the aggregate market value of shares held by nonaffiliates was approximately $44.3 billion. The Capital Stock is listed on the New York and Chicago Stock Exchanges. Part III information (executive compensation, directors, and related matters) is incorporated by reference from the proxy statement for the May 3, 2000 Annual Meeting of Shareholders. Investors seeking substantive analysis should review the original 10-K filed March 21, 2000, which contains the full financial disclosures. This amendment is administrative in nature and carries no new financial information.
Mar 23, 2000
1999
PEPSICO INC Annual Report, Year Ended Dec 25, 1999
PepsiCo's fiscal 1999 results were shaped by a major portfolio restructuring rather than by underlying operating momentum alone. During 1999 the company deconsolidated much of its bottling system by forming four anchor bottlers (PBG, the Whitman combination, PepCom and Pohlad), retaining noncontrolling stakes of roughly 24% to 40%. Reported net sales fell 9% to $20.4 billion, but this reflects the deconsolidation rather than weakness. Excluding the bottling changes and the Tropicana consolidation, New PepsiCo net sales rose 24% to $18.2 billion, with volume gains at Frito-Lay and higher effective pricing. Reported operating profit rose 9% to $2.8 billion, and reported EPS from continuing operations was $1.37 (diluted), up 5%. The $1.0 billion pre-tax gain on the PBG IPO and the Whitman transaction (partly offset by an after-tax loss on Whitman) flattered reported results, while the 43.9% effective tax rate reflects taxes on those transactions. Ongoing results, which exclude the one-time items, were more modest. Ongoing EPS rose 6% to $1.23, and ongoing operating profit margin on New PepsiCo sales slipped 0.3 points to 15.2% as G&A spending (including $71 million for a shared services program) and advertising and marketing expenses grew faster than sales. Net interest expense fell 24% after the bottling-related debt paydown, and average diluted shares dropped about 1.5%. Share repurchases were $1.3 billion, with a new $3 billion authorization covering 1999 through 2001. Dividends were raised to 53.5 cents per share from 51.5 cents. Capital spending was $1.1 billion, and operating cash flow was $3.0 billion. The balance sheet is substantially lighter following the deconsolidation. Total assets fell to $17.6 billion from $22.7 billion, and long-term debt fell to $2.8 billion from $4.0 billion. Intangible assets dropped to $4.7 billion from $9.0 billion, and investments in unconsolidated affiliates rose to $2.8 billion. The company guaranteed $2.3 billion of Bottling Group LLC debt, a contingent obligation investors should monitor. Tropicana, acquired in 1998 for $3.3 billion, contributed $2.25 billion in net sales and $170 million in operating profit in its first full year as part of PepsiCo.
Mar 21, 2000
1998
PEPSICO INC Annual Report, Year Ended Dec 26, 1998
PepsiCo's 1998 Form 10-K shows a company in transition. Net sales rose 7% to $22.3 billion, driven by volume gains across all businesses, a Tropicana acquisition contribution of $722 million, and higher effective net pricing at Frito-Lay North America. Reported operating profit fell 3.0% to $2.58 billion, and reported operating margin declined to 11.6% from 12.7%. Ongoing operating profit (excluding $288 million of unusual impairment and restructuring charges, largely from Russian bottling operations) fell 3.0% to $2.87 billion, as higher advertising, marketing, and selling expenses and costs tied to Pepsi One and WOW! product launches weighed on margins. Bottom-line results were flattered by a one-time $494 million tax benefit from settling a Puerto Rico concentrate tax case with the IRS. Reported net income fell 7% to $1.99 billion and diluted EPS rose to $1.31, but ongoing income from continuing operations rose only 2% to $1.76 billion, with ongoing EPS up 5% to $1.16. Share count fell roughly 3% after $2.2 billion of buybacks, and cash dividends rose to $0.515 per share. The most significant strategic items for investors are structural. PepsiCo is separating its company-owned bottling operations into The Pepsi Bottling Group through an IPO expected in the second quarter of 1999, which will reduce PepsiCo's direct capital spending (guided to about $1.2 billion in 1999). Balance sheet leverage increased: total assets reached $22.7 billion, intangible assets nearly doubled to $9.0 billion following the Tropicana purchase, short-term borrowings rose to $3.9 billion, and PBG incurred $6.55 billion of debt in early 1999, of which $2.3 billion is guaranteed by PepsiCo. Management also flagged macroeconomic pressure in Brazil, Mexico, Russia, and Asia, and a planned Whitman bottling realignment that is expected to yield a net gain.
Mar 24, 1999
1997
PEPSICO INC Annual Report, Year Ended Dec 27, 1997
PepsiCo's 1997 10-K shows a company in transition after spinning off its restaurant businesses (Pizza Hut, Taco Bell, KFC) to shareholders on October 6, 1997 as TRICON Global Restaurants, and selling PepsiCo Food Systems. Continuing operations now consist of two segments: Beverages (Pepsi-Cola) and Snack Foods (Frito-Lay). Net sales rose 3% to $20.9 billion, and reported net income more than doubled to $2.14 billion ($1.36 per diluted share), though that figure is inflated by $651 million of discontinued-operations income, including a $500 million gain on the PFS sale. Reported operating profit rose 30% to $2.66 billion, while ongoing operating profit grew 13% to $2.95 billion, and ongoing diluted EPS from continuing operations was $1.10 versus $0.92 in 1996. The balance sheet and cash flow picture improved markedly. Cash flow from operations was $3.4 billion, free cash flow from continuing operations nearly doubled to $1.38 billion, and the company received a $4.5 billion cash distribution from TRICON before the spin-off. Management used these proceeds to cut long-term debt from $8.2 billion to $4.9 billion and repurchased $2.5 billion of stock (69 million shares). Shareholders' equity is still modest at $6.9 billion, and the company is signaling it plans to gradually re-leverage over time. Segment results were uneven: North American Beverages ongoing profit fell 4%, while International Beverages improved sharply from a loss, and Snack Foods grew ongoing profit 11% on 6% sales growth. For investors, the key takeaways are the cleaner, more focused packaged goods business, a materially stronger balance sheet, and an aggressive capital return program. Risks to watch include competitive pricing pressure in North American beverages, continued international volatility, $290 million of unusual charges in 1997, and Year 2000 remediation costs that management says will not be material but cannot yet be fully quantified.
Mar 24, 1998
1996
PEPSICO INC Annual Report, Year Ended Dec 28, 1996
PepsiCo's 1996 Form 10-K shows a company in transition. Reported net sales rose 5% to $31.6 billion, and volume gains of $592 million were driven by snack foods and North American beverages. However, reported operating profit fell 15% to $2.5 billion and reported net income fell 28% to $1.15 billion ($0.72 per share). The decline reflects $822 million of unusual impairment, disposal and other charges, including $576 million in International beverages and $246 million from disposing of non-core U.S. restaurant businesses. Excluding these items, ongoing operating profit fell 4% to $3.4 billion and ongoing EPS fell 6% to $1.17, so the core business weakened but did not collapse. International beverages swung to an ongoing operating loss of $270 million, driven by higher advertising spending, unconsolidated affiliate losses (notably BAESA) and a Venezuelan bottler loss. Management is restructuring the portfolio. In January 1997 PepsiCo announced plans to spin off Pizza Hut, Taco Bell and KFC to shareholders, subject to an IRS tax ruling and board approval, with completion targeted for year-end 1997. The company is also exploring a sale of PepsiCo Food Systems. Restaurant refranchising continues to reduce ownership, which generated $355 million in cash in 1996. Shareholder returns remain a priority: share repurchases rose to $1.65 billion and dividends were raised to $0.445 per share, with free cash flow up 41% to $1.54 billion. Leverage is moderate, with a market net debt ratio of 18% and a historical net debt ratio of 48%. Key watch items for investors are the execution of the restaurant spin-off, whether International beverages can return to profitability after its restructuring (expected to save about $50 million in 1997 and $80 million annually thereafter), and the earnings effect of Mexico's move to U.S. dollar functional currency accounting in 1997.
Mar 25, 1997
1995
PEPSICO INC Annual Report, Year Ended Dec 30, 1995
PepsiCo's 1995 Form 10-K shows a company with $30.4 billion in net sales (up 7%) and ongoing operating profit up 10% to $3.5 billion, but reported operating profit fell 7% to $2.99 billion. The decline was driven by a $520 million noncash charge from early adoption of SFAS 121 (impairment of long-lived assets), which cut reported net income to $1.6 billion ($2.00 per share, down 10%). Excluding the charge, ongoing EPS rose 13% to $2.48. Management attributed growth to volume gains in snack foods and beverages, while restaurants were restructured through refranchising, with a $51 million net gain on restaurant sales to franchisees. The balance sheet remained strong: total assets rose 3% to $25.4 billion, shareholders' equity grew 7% to $7.3 billion, and operating cash flow was $3.7 billion against $2.1 billion of capital spending. Market net debt fell to 18% from 26%, below the company's 20-25% target range. Management guided to $2.5 billion of 1996 capital spending, with a shift toward snack foods and beverages and away from restaurants. The main risks flagged were the Mexican peso devaluation (Mexico operating profit fell 69% reported), a proposed change to Puerto Rico tax rules (Q&A 12) that could raise the 1996 effective tax rate by about 3.7 points, and possible future SFAS 121 charges. For investors, the key issues are the quality of the 1995 earnings recovery excluding one-time items, the sustainability of restaurant margin improvements, and exposure to emerging-market currency and tax policy shifts.
Mar 26, 1996
1994
PEPSICO INC Annual Report, Year Ended Dec 31, 1994
PepsiCo's 1994 10-K shows a company still growing strongly on the top line and bottom line, though with a clear warning flag from Mexico. Net sales rose 14% to $28.5 billion (helped by a 53rd week worth about 2 points of growth), operating profit rose 10% to $3.2 billion, and income before cumulative accounting effects reached $1.78 billion, or $2.22 per share, up 13%. Excluding unusual items, income per share grew 9%. Reported net income of $1.75 billion ($2.18 per share) was reduced by a net $32 million cumulative accounting charge tied to postemployment benefits (SFAS 112) and partly offset by a pension accounting benefit. International operations, now 29% of sales, drove much of the expansion, but the late-1994 Mexican peso devaluation is a major concern. Management expects it to reduce 1995 earnings, cash flow, and international profit contributions, and it cut about $275 million from shareholders' equity through currency translation. Cash generation remained strong, with operating cash flow of $3.7 billion funding $2.3 billion of capital spending, $540 million of dividends, and $549 million of share repurchases. Leverage rose: the market net debt ratio climbed to 26% from 22%, above management's 20-25% target range, mainly because the stock price fell 13% during the year. Return on average shareholders' equity stayed high at 27.0%. The restaurant segment is a weak spot, with profit down 6% and management evaluating options such as selling company-owned units to franchisees. Management also expects the 1995 tax rate to stay at or below 35%, but a proposed change to Puerto Rico concentrate tax rules (Q&A 12) could cost about $112 million, or $0.14 per share, if enacted. Overall, PepsiCo's core beverage and snack franchises remain strong, with rising volumes and improving international profits in several regions. Investors should weigh that against the near-term Mexican shock, a higher debt load, restaurant underperformance, and possible tax headwinds.
Mar 28, 1995