Summary
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.
Financial Highlights
53 data points| Revenue | $91.47B |
| Cost of Revenue | $41.88B |
| Gross Profit | $49.59B |
| R&D Expenses | $804.00M |
| SG&A Expenses | $36.68B |
| Operating Income | $11.99B |
| Interest Expense | $819.00M |
| Net Income | $9.07B |
| EPS (Basic) | $6.59 |
| EPS (Diluted) | $6.56 |
| Shares Outstanding (Basic) | 1.38B |
| Shares Outstanding (Diluted) | 1.38B |
Key Highlights
- 1Net revenue increased by 6% to $91.5 billion in fiscal year 2023.
- 2Operating profit grew by 4% to $12.0 billion, with an operating margin of 13.1%.
- 3Announced a 7% increase in annualized dividend to $5.42 per share, with plans to return $8.2 billion to shareholders in 2024.
- 4Free cash flow increased by 39% to $8.1 billion.
- 5The company's 'pep+' strategy continues to drive business transformation with a focus on sustainability across agriculture and value chain.
- 6Frito-Lay North America (FLNA) and Latin America (LatAm) divisions showed strong net revenue growth.
- 7PepsiCo Beverages North America (PBNA) saw its operating profit significantly impacted by a prior-year gain from the Juice Transaction and current-year impairment charges.