Summary
PepsiCo, Inc.'s (PEP) third-quarter 2012 filing shows a decrease in net revenue and net income compared to the same period in the prior year, primarily driven by unfavorable foreign currency impacts and higher commodity costs. For the 12 weeks ended September 8, 2012, net revenue was $16.65 billion, down 5% from $17.58 billion in the prior year. Net income attributable to PepsiCo was $1.90 billion, a decrease from $2.00 billion in the prior year. Diluted earnings per share also saw a decline to $1.21 from $1.25. The company experienced a mixed performance across its divisions. While Frito-Lay North America and Quaker Foods North America showed modest revenue growth or stability, PepsiCo Americas Beverages and Asia, Middle East & Africa divisions faced significant revenue declines. The company is actively managing these challenges through productivity plans and strategic cost management, aiming to strengthen its competitive position.
Financial Highlights
50 data points| Revenue | $16.65B |
| Cost of Revenue | $7.83B |
| Gross Profit | $8.82B |
| SG&A Expenses | $5.99B |
| Operating Income | $2.80B |
| Interest Expense | $204.00M |
| Net Income | $1.90B |
| EPS (Basic) | $1.22 |
| EPS (Diluted) | $1.21 |
| Shares Outstanding (Basic) | 1.56B |
| Shares Outstanding (Diluted) | 1.57B |
Key Highlights
- 1Net revenue for the 12 weeks ended September 8, 2012, decreased by 5% to $16.65 billion compared to $17.58 billion in the prior year, largely due to unfavorable foreign currency impacts.
- 2Net income attributable to PepsiCo for the 12-week period decreased to $1.90 billion from $2.00 billion in the prior year.
- 3Diluted earnings per share for the 12-week period decreased to $1.21 from $1.25 in the prior year.
- 4Frito-Lay North America reported a 3% increase in net revenue to $3.27 billion, driven by effective net pricing and volume growth.
- 5PepsiCo Americas Beverages division experienced a 7% net revenue decline, attributed to the divestiture of its Mexico beverage business and volume declines.
- 6The company continues to execute its multi-year productivity plan, which aims to enhance cost-competitiveness and fund future innovation.
- 7PepsiCo's balance sheet showed an increase in cash and cash equivalents to $5.31 billion as of September 8, 2012, from $4.07 billion at the end of 2011.