Summary
PepsiCo Inc. reported its first-quarter results for 2012, showing a slight decrease in net income attributable to the company to $1,127 million from $1,143 million in the prior year period. Diluted earnings per share remained flat at $0.71. Net revenue saw a 4% increase to $12,428 million, driven by effective net pricing and volume growth in several divisions, though offset by declines in others and a negative impact from foreign exchange. The company is implementing a multi-year Productivity Plan aimed at enhancing cost-competitiveness and funding future innovation. This plan involves restructuring and impairment charges, which impacted operating profit in the current quarter. Significant capital allocation activities included substantial dividend payments and share repurchases, totaling $958 million in the quarter, with over $6 billion anticipated for the full year. The company also completed a strategic transaction in China, contributing its bottling operations in exchange for an indirect equity interest in Tingyi-Asahi Beverages Holding Co Ltd.
Financial Highlights
51 data points| Revenue | $12.43B |
| Cost of Revenue | $5.89B |
| Gross Profit | $6.54B |
| SG&A Expenses | $4.79B |
| Operating Income | $1.72B |
| Interest Expense | $198.00M |
| Net Income | $1.13B |
| EPS (Basic) | $0.72 |
| EPS (Diluted) | $0.71 |
| Shares Outstanding (Basic) | 1.57B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Net revenue increased by 4% to $12.4 billion, driven by effective net pricing across divisions.
- 2Net income attributable to PepsiCo decreased slightly by 1% to $1,127 million, with diluted EPS remaining flat at $0.71.
- 3The company incurred $33 million in restructuring and impairment charges related to its new multi-year Productivity Plan.
- 4Cash generated from operating activities was negative $690 million, impacted by $1.0 billion in discretionary pension and retiree medical contributions.
- 5PepsiCo completed a transaction contributing its China bottling operations to Tingyi-Asahi Beverages Holding Co Ltd, receiving a 5% indirect equity interest.
- 6Total debt obligations increased to $22.1 billion, while cash and cash equivalents decreased to $3.5 billion.
- 7Significant shareholder returns were demonstrated through $816 million in cash dividends paid and $142 million in share repurchases during the quarter.