01—Abstract
Summary
Summary of the 10-K filed February 10, 2022. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- PepsiCo reported strong financial performance in 2021, with significant increases in net revenue and operating profit.
- The company is advancing its "pep+" (PepsiCo Positive) strategic framework, emphasizing sustainability across agriculture, value chain, and product choices.
- Significant growth was observed in key divisions like PBNA, LatAm, AMESA, and APAC, driven by volume and effective net pricing.
- PepsiCo announced a 7% increase in its annualized dividend to $4.60 per share and a $10 billion share repurchase program, signaling a strong commitment to shareholder returns.
- The company successfully managed through global economic challenges, including supply chain disruptions and inflationary pressures, by leveraging its diversified portfolio and productivity initiatives.
- PepsiCo is strategically streamlining its portfolio, notably with the divestiture of its Tropicana, Naked, and other select juice brands in early 2022.
- The company highlighted ongoing investments in innovation, digital capabilities, and sustainability to drive future growth and mitigate risks.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Pepsico Inc kept $0.10.
- Revenue$79.47B100.0%
- Cost of revenue−$37.08B46.7%
- Gross profit$42.40B53.3%
- Operating costs−$31.24B39.3%
- Operating income$11.16B14.0%
- Interest, other & tax−$3.54B4.5%
- Net income$7.62B9.6%
Where FY2021 revenue went
$79.47B- Cost of revenue: $37.08B, 47% of revenue
- SG&A: $31.24B, 39% of revenue
- Net income: $7.62B, 9.6% of revenue
- R&D: $752.0M, 0.9% of revenue
- Interest, other & tax: $3.54B, 4.5% of revenue
Kept 9.6% as net incomeNet income $7.62B · 9.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 10, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $79.47B$70.37B | +12.9% |
| Cost of Revenue | $37.08B$31.80B | +16.6% |
| Gross Profit | $42.40B$38.58B | +9.9% |
| R&D Expenses | $752.00M$719.00M | +4.6% |
| SG&A Expenses | $31.24B$28.45B | +9.8% |
| Operating Income | $11.16B$10.08B | +10.7% |
| Interest Expense | $1.86B$1.13B | +65.2% |
| Net Income | $7.62B$7.12B | +7.0% |
| EPS (Basic) | $5.51$5.14 | +7.2% |
| EPS (Diluted) | $5.49$5.12 | +7.2% |
| Shares Outstanding (Basic) | 1.38B1.39B | −0.2% |
| Shares Outstanding (Diluted) | 1.39B1.39B | −0.2% |
05—Questions
Frequently Asked Questions
What were PepsiCo's key financial performance highlights for the fiscal year 2021?
PepsiCo demonstrated strong financial performance in fiscal year 2021, reporting significant increases in net revenue and operating profit. The company achieved this through effective net pricing strategies and organic volume growth across its various business segments, supported by its "pep+" strategic framework which aims to drive sustainable growth and value creation.
How is PepsiCo addressing inflationary pressures and supply chain disruptions?
PepsiCo is actively managing inflationary pressures and supply chain disruptions by implementing productivity initiatives, global purchasing programs, and utilizing hedging strategies for commodity prices. The company also selectively passes on cost increases to customers where appropriate, aiming to maintain margins while managing volume and revenue.
What is PepsiCo's strategy regarding sustainability and its "pep+" initiative?
PepsiCo's "pep+" initiative is a comprehensive, end-to-end transformation of its business with sustainability at its core. It focuses on three pillars: Positive Agriculture (regenerative practices, sustainable sourcing), Positive Value Chain (net-zero emissions by 2040, net water positive by 2030, sustainable packaging), and Positive Choices (evolving product portfolio for better health and environmental impact, expanding plant-based options, and promoting brands like SodaStream).
How is PepsiCo returning capital to shareholders?
PepsiCo is committed to returning capital to shareholders through dividends and share repurchases. In early 2022, the company announced a 7% increase in its annualized dividend and initiated a new $10 billion share repurchase program, indicating a strong focus on enhancing shareholder value.
06—Continue