Summary
PepsiCo, Inc. reported solid financial results for the 36 weeks ended September 7, 2013, with net income attributable to PepsiCo increasing by 11% to $4.998 billion compared to $4.517 billion in the prior year period. Diluted earnings per share saw a corresponding 12% increase, rising to $3.20 from $2.86. The company demonstrated strong operating cash flow generation, with net cash provided by operating activities reaching $6.662 billion for the period, an increase from $5.118 billion in the prior year, aided by improved working capital management and a significant reduction in discretionary pension contributions compared to the previous year. While overall net revenue saw a modest increase of 2% to $46.297 billion, driven by effective net pricing and volume growth in key segments like Frito-Lay North America and Latin America Foods, the company navigated some headwinds. Foreign currency fluctuations negatively impacted reported revenue growth by 1 percentage point. Strategic investments in business capabilities and higher advertising and marketing expenses were also noted factors affecting profitability, alongside some operating cost increases and higher commodity costs in certain segments. Despite these challenges, the company continued to return capital to shareholders, with significant dividend payments and share repurchases planned for the full year.
Financial Highlights
50 data points| Revenue | $16.91B |
| Cost of Revenue | $7.95B |
| Gross Profit | $8.96B |
| SG&A Expenses | $6.16B |
| Operating Income | $2.78B |
| Interest Expense | $220.00M |
| Net Income | $1.91B |
| EPS (Basic) | $1.24 |
| EPS (Diluted) | $1.23 |
| Shares Outstanding (Basic) | 1.54B |
| Shares Outstanding (Diluted) | 1.56B |
Key Highlights
- 1Net income attributable to PepsiCo increased by 11% to $4.998 billion for the 36 weeks ended September 7, 2013, compared to $4.517 billion in the prior year.
- 2Diluted earnings per share (EPS) grew by 12% to $3.20 from $2.86 for the same period, indicating strong profitability.
- 3Net cash provided by operating activities significantly increased to $6.662 billion from $5.118 billion, reflecting improved working capital management and reduced pension contributions.
- 4Total net revenue for the 36-week period grew by 2% to $46.297 billion, driven by effective net pricing and volume growth, particularly in FLNA and LAF segments.
- 5The company is actively returning capital to shareholders, planning to return approximately $6.4 billion in 2013 through dividends and share repurchases.
- 6Foreign currency translation had a negative impact of 1 percentage point on net revenue growth for the 36-week period.
- 7Restructuring and impairment charges decreased significantly compared to the prior year, indicating progress in efficiency initiatives.