Summary
PepsiCo, Inc. reported its financial results for the 12 and 24 weeks ended June 16, 2012. For the 12-week period, net revenue decreased by 2% to $16.5 billion, and operating profit decreased by 14% to $2.4 billion. For the 24-week period, net revenue remained flat at $28.9 billion, while operating profit declined by 9% to $4.1 billion. These results were impacted by various factors including higher commodity costs, unfavorable foreign currency movements, and significant restructuring and other charges. Despite the reported declines, the company highlighted efforts to improve cost-competitiveness through its multi-year Productivity Plan. The company also continued to focus on returning capital to shareholders, with significant dividend payments and share repurchases. While net revenue saw some pressure, particularly in the Americas Beverages segment due to divestitures and volume declines, the Europe and Latin America Foods segments showed positive organic net revenue growth. Investors should note the significant impact of "items affecting comparability," which include mark-to-market net losses on commodity hedges, restructuring and impairment charges, merger and integration charges, and restructuring and other charges related to the Tingyi transaction. These items significantly affected reported profitability, making it important to analyze the underlying operational performance.
Financial Highlights
50 data points| Revenue | $16.46B |
| Cost of Revenue | $7.92B |
| Gross Profit | $8.54B |
| SG&A Expenses | $6.14B |
| Operating Income | $2.38B |
| Interest Expense | $209.00M |
| Net Income | $1.49B |
| EPS (Basic) | $0.95 |
| EPS (Diluted) | $0.94 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.58B |
Key Highlights
- 1Net revenue for the 12 weeks ended June 16, 2012, was $16.46 billion, a 2% decrease compared to $16.83 billion in the prior year.
- 2Net income attributable to PepsiCo for the 12 weeks ended June 16, 2012, was $1.49 billion, down from $1.89 billion in the prior year.
- 3Diluted earnings per share for the 12 weeks ended June 16, 2012, were $0.94, compared to $1.17 in the prior year.
- 4The company reported significant restructuring and impairment charges of $110 million for the 24 weeks ended June 16, 2012, as part of its multi-year Productivity Plan.
- 5PepsiCo Americas Beverages (PAB) segment net revenue decreased by 5% in the 12-week period, impacted by divestitures and volume declines.
- 6Europe segment showed a 1% increase in net revenue for the 24-week period, with a 7% constant currency growth, driven by effective net pricing and the WBD acquisition.
- 7Cash dividends declared per common share increased to $0.5375 for the 12 weeks ended June 16, 2012, from $0.515 in the prior year.