Summary
PepsiCo Inc. reported modest revenue growth for the first quarter of 2013, with net revenue increasing by 1% to $12.58 billion compared to the prior year period. However, operating profit saw a decline of 4% to $1.66 billion, primarily due to significant one-time charges, including a $111 million after-tax hit from the Venezuelan currency devaluation and $11 million in restructuring charges. Excluding these items, operating profit showed a positive trend, increasing by 5% on a constant currency basis. Diluted earnings per share (EPS) decreased by 3% to $0.69, also impacted by these comparability items. Despite the slight dip in profitability, the company demonstrated strong operational execution in several segments, with Latin America Foods, PepsiCo Americas Beverages, Europe, and Asia, Middle East & Africa segments showing positive operating profit growth on a constant currency basis. The company also highlighted a 4% increase in total servings and initiated a new share repurchase program alongside a planned dividend increase, signaling confidence in its future cash generation and commitment to returning capital to shareholders. The balance sheet remains solid with healthy cash and cash equivalents.
Financial Highlights
50 data points| Revenue | $12.58B |
| Cost of Revenue | $5.83B |
| Gross Profit | $6.75B |
| SG&A Expenses | $5.07B |
| Operating Income | $1.66B |
| Interest Expense | $214.00M |
| Net Income | $1.07B |
| EPS (Basic) | $0.69 |
| EPS (Diluted) | $0.69 |
| Shares Outstanding (Basic) | 1.54B |
| Shares Outstanding (Diluted) | 1.56B |
Key Highlights
- 1Net revenue grew slightly by 1% to $12.58 billion, indicating stable top-line performance.
- 2Operating profit declined by 4% to $1.66 billion, largely due to $111 million (after-tax) from Venezuela devaluation and $11 million in restructuring charges.
- 3Excluding items affecting comparability, operating profit increased by 5% on a constant currency basis, demonstrating underlying operational strength.
- 4Diluted EPS decreased by 3% to $0.69, reflecting the impact of the aforementioned charges.
- 5The company declared a 5.6% increase in its annualized dividend to $2.27 per share, effective June 2013.
- 6A new $10 billion share repurchase program was announced, commencing July 1, 2013, demonstrating commitment to shareholder returns.
- 7Total servings increased by 4% year-over-year, indicating positive volume momentum across the business.