Summary
PepsiCo, Inc. reported solid financial results for the second quarter of 2013, showcasing an increase in net revenue and operating profit. For the 24 weeks ended June 15, 2013, net revenue grew by 2% to $29.39 billion, and operating profit saw a significant increase of 10% to $4.53 billion. This growth was driven by a combination of effective net pricing, planned cost reductions, and volume increases across several segments. Key factors contributing to the positive performance include strong results from Frito-Lay North America (FLNA) and Latin America Foods (LAF), which demonstrated robust revenue and profit growth. The company also saw positive impacts from strategic initiatives and productivity plans aimed at enhancing cost competitiveness. While the company faced some headwinds, such as unfavorable foreign currency movements impacting international segments like Europe and AMEA, overall performance remained strong, supported by a 4% increase in total servings. PepsiCo also continued its commitment to shareholder returns, announcing a dividend increase and a new share repurchase program.
Financial Highlights
50 data points| Revenue | $16.81B |
| Cost of Revenue | $7.90B |
| Gross Profit | $8.91B |
| SG&A Expenses | $6.01B |
| Operating Income | $2.87B |
| Interest Expense | $208.00M |
| Net Income | $2.01B |
| EPS (Basic) | $1.30 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 1.55B |
| Shares Outstanding (Diluted) | 1.57B |
Key Highlights
- 1Net revenue for the 24 weeks ended June 15, 2013, increased by 2% to $29.39 billion, compared to $28.89 billion in the prior year period.
- 2Operating profit for the 24 weeks increased by 10% to $4.53 billion, up from $4.10 billion in the prior year.
- 3Frito-Lay North America (FLNA) and Latin America Foods (LAF) showed strong performance, with net revenue growth of 4% and 9% respectively for the 24-week period.
- 4Total servings increased by 4% for the 12 and 24 weeks ended June 15, 2013, indicating growing consumer demand.
- 5The company announced a 5.6% increase in its annualized dividend and a new $10 billion share repurchase program, demonstrating a commitment to shareholder returns.
- 6Negative foreign currency translation impacted net revenue and operating profit in international segments such as Europe and Asia, Middle East & Africa (AMEA).