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PEPSICO INC Annual Report, Year Ended Dec 28, 2002

Filing Date
Filed March 7, 2003
Period End
December 28, 2002
Security
PEP
In the record · 2016–202610-K1110-Q338-K145

PEP filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 145 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’16Jun ’16
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Leadership change8-K · Aug ’21Aug ’21
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed March 7, 2003. Cited figures are marked; the original filing is the authoritative source.

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 billiona, 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 billionb, 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.

02—Key points

Key Highlights

  1. Net sales increased by 7% to $25.112 billion.
  2. Operating profit increased by 18% to $4.730 billion.
  3. Net income rose by 24% to $3.313 billion.
  4. Diluted earnings per share increased by 26% to $1.85.
  5. Operating profit margin improved by 1.7 percentage points to 18.8%, driven by merger synergies and productivity gains.
  6. The company continued to execute a strong share repurchase program, using $2.158 billion in 2002.
  7. Significant volume growth was observed across all divisions, led by beverages.

03—Questions

Frequently Asked Questions

  1. What were PepsiCo's primary revenue drivers in 2002?

    PepsiCo's revenue growth in 2002 was primarily driven by volume gains across all its divisions, supported by higher concentrate pricing, favorable product mix, and the consolidation of Snack Ventures Europe (SVE). The beverage and snack segments, in particular, showed strong performance.

  2. How did the merger with Quaker impact PepsiCo's financial performance?

    The merger with Quaker continued to positively impact PepsiCo's financial performance. The company reported approximately $250 million in merger synergies in 2002, with expectations of reaching $400 million annually by 2004. These synergies, along with productivity initiatives, contributed to improved operating margins and cost reductions.

  3. What is PepsiCo's strategy for returning capital to shareholders?

    PepsiCo's strategy for returning capital to shareholders includes consistent quarterly cash dividend payments, with a policy to pay approximately one-third of its net income. Additionally, the company actively engages in share repurchases, with a significant program authorized, demonstrating a commitment to enhancing shareholder value.

  4. What are the key risks and uncertainties facing PepsiCo?

    PepsiCo faces several risks and uncertainties, including fluctuations in commodity prices, foreign exchange rates, interest rates, and stock prices. Other factors include continued demand for products dependent on innovation and marketing, competitive pressures, economic changes and political unrest in international markets, changes in laws and regulations, and manufacturing cost fluctuations.

04—Continue

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