Summary
PepsiCo Inc. reported solid financial results for the 12 weeks ended March 20, 2010, demonstrating resilience despite significant strategic activities. The company's net revenue saw a substantial increase of 13% to $9.368 billion, largely driven by the transformative acquisitions of The Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) which closed in late February 2010. While operating profit decreased by 47% to $840 million, this was heavily influenced by significant one-time items related to the PBG/PAS merger and integration, inventory fair value adjustments, and the Venezuela currency devaluation. Excluding these items, the company showed underlying operational strength. Net income attributable to PepsiCo increased by a healthy 26% to $1.430 billion, with diluted earnings per share rising 23% to $0.89. This performance was significantly boosted by a large gain on previously held equity interests in PBG and PAS, partially offset by merger and integration costs. The company's balance sheet reflects the substantial impact of the acquisitions, with total assets growing significantly. PepsiCo also continued its commitment to shareholder returns, increasing its dividend and authorizing substantial share repurchases.
Financial Highlights
52 data points| Revenue | $9.37B |
| Cost of Revenue | $4.46B |
| Gross Profit | $4.91B |
| SG&A Expenses | $4.05B |
| Operating Income | $840.00M |
| Interest Expense | $154.00M |
| Net Income | $1.43B |
| EPS (Basic) | $0.90 |
| EPS (Diluted) | $0.89 |
| Shares Outstanding (Basic) | 1.58B |
| Shares Outstanding (Diluted) | 1.61B |
Key Highlights
- 1Net revenue increased 13% to $9.368 billion, primarily due to the acquisitions of PBG and PAS.
- 2Net income attributable to PepsiCo rose 26% to $1.430 billion, significantly benefiting from a $958 million gain on previously held equity interests in PBG and PAS.
- 3Diluted earnings per share increased 23% to $0.89.
- 4The company incurred significant PBG/PAS merger and integration charges ($312 million), inventory fair value adjustments ($281 million), and a Venezuela currency devaluation charge ($120 million), which impacted reported operating profit.
- 5Total assets significantly increased to $64.144 billion as of March 20, 2010, reflecting the consolidation of PBG and PAS.
- 6Cash used for investing activities was substantial at $4.011 billion, largely due to the PBG and PAS acquisitions and the Dr Pepper Snapple Group agreement.
- 7The company announced a 7% increase in its annual dividend and authorized significant share repurchases.