Summary
PepsiCo Inc. reported its first-quarter results for the period ending March 19, 2011. The company experienced a significant increase in net revenue, up 27% year-over-year to $11.9 billion, largely driven by the integration of recent acquisitions, particularly The Pepsi Bottling Group (PBG) and PepsiAmericas (PAS), and the acquisition of Wimm-Bill-Dann Foods (WBD). However, net income attributable to PepsiCo decreased by 20% to $1.14 billion, or $0.71 per diluted share, compared to $1.43 billion, or $0.89 per diluted share, in the prior year. This decline in net income is largely attributable to the absence of a significant gain from previously held equity interests in PBG and PAS in the prior year and increased merger and integration charges related to the WBD acquisition. The company's operating profit saw a substantial increase of 105% to $1.73 billion, but this was heavily influenced by a net benefit from items affecting comparability, which significantly boosted the prior year's operating profit. Excluding these items, operating profit growth was more modest. The beverage segment, PepsiCo Americas Beverages (PAB), showed strong revenue growth due to acquisitions, while Europe's operating profit declined due to higher costs and integration expenses. The company continues to focus on managing commodity price risks and foreign exchange exposure through hedging strategies.
Financial Highlights
51 data points| Revenue | $11.94B |
| Cost of Revenue | $5.45B |
| Gross Profit | $6.49B |
| SG&A Expenses | $4.74B |
| Operating Income | $1.73B |
| Interest Expense | $180.00M |
| Net Income | $1.14B |
| EPS (Basic) | $0.72 |
| EPS (Diluted) | $0.71 |
| Shares Outstanding (Basic) | 1.58B |
| Shares Outstanding (Diluted) | 1.60B |
Key Highlights
- 1Net revenue increased by 27% to $11.9 billion, primarily driven by acquisitions of PBG, PAS, and WBD.
- 2Net income attributable to PepsiCo decreased by 20% to $1.14 billion, impacted by the absence of a large prior-year gain and increased merger costs.
- 3Diluted earnings per share (EPS) decreased to $0.71 from $0.89 in the prior year.
- 4Operating profit surged by 105% to $1.73 billion, though significantly influenced by 'items affecting comparability' from the prior year.
- 5The PepsiCo Americas Beverages (PAB) segment experienced substantial revenue growth (64%) due to acquisitions.
- 6Europe segment reported a decline in operating profit (-47%) due to integration costs and increased investments.
- 7The company continued to repurchase shares, returning capital to shareholders, with $3.6 billion in commercial paper outstanding as of March 19, 2011.