Summary
PepsiCo, Inc. reported its third-quarter 2015 financial results, reflecting a significant impact from a substantial impairment charge related to its Venezuelan operations. For the 12 weeks ended September 5, 2015, net revenue decreased 5% year-over-year to $16.3 billion, while operating profit saw a steep decline of 50% to $1.4 billion, largely due to a $1.4 billion impairment charge for its Venezuelan subsidiaries and joint venture. Despite the significant hit from Venezuela, the company demonstrated resilience in its core operations. Frito-Lay North America and North America Beverages showed solid revenue and operating profit growth. However, unfavorable foreign exchange rates significantly impacted results in international divisions like Latin America, Europe Sub-Saharan Africa, and Asia, Middle East and North Africa. Investors should note the company's ongoing restructuring efforts and commitment to returning capital to shareholders through dividends and share repurchases.
Financial Highlights
50 data points| Revenue | $16.33B |
| Cost of Revenue | $7.49B |
| Gross Profit | $8.84B |
| SG&A Expenses | $6.05B |
| Operating Income | $1.42B |
| Interest Expense | $225.00M |
| Net Income | $533.00M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 1.47B |
| Shares Outstanding (Diluted) | 1.48B |
Key Highlights
- 1Net revenue for the 12 weeks ended September 5, 2015, was $16.3 billion, a decrease of 5% compared to the prior year period.
- 2Operating profit for the 12 weeks ended September 5, 2015, was $1.4 billion, a decrease of 50% year-over-year, heavily influenced by a $1.4 billion Venezuela impairment charge.
- 3Net income attributable to PepsiCo for the 12 weeks ended September 5, 2015, was $533 million, a substantial decrease from $2.0 billion in the prior year, primarily due to the Venezuela charges.
- 4Diluted earnings per share for the 12 weeks ended September 5, 2015, were $0.36, down from $1.32 in the comparable period last year.
- 5Frito-Lay North America and North America Beverages divisions showed positive revenue and operating profit growth, indicating strength in key domestic segments.
- 6The company continues its return of capital to shareholders, with dividend payments and share repurchases totaling $6.2 billion in the first 36 weeks of 2015.
- 7Unfavorable foreign exchange rates had a significant negative impact on revenue and operating profit across international segments, particularly in Latin America and ESSA.