Summary
PepsiCo, Inc. reported its financial results for the second quarter ended June 11, 2016. The company experienced a slight decrease in net revenue, down 3% to $15.4 billion for the 12-week period and down 3% to $27.3 billion for the 24-week period, compared to the prior year. This revenue decline was largely attributed to unfavorable foreign exchange rates and the deconsolidation of Venezuelan operations. Despite the revenue dip, operating profit saw a modest increase of 2% to $2.96 billion for the 12-week period, driven by productivity initiatives and effective net pricing, although it decreased by 2% to $4.58 billion for the 24-week period, impacted by an impairment charge related to an investment in Tingyi. Net income attributable to PepsiCo showed a slight increase of 1% to $2.01 billion for the 12-week period but decreased by 8% to $2.94 billion for the 24-week period. Diluted earnings per share followed a similar trend, rising 4% to $1.38 for the 12-week period and declining 6% to $2.01 for the 24-week period. The company continued to return capital to shareholders, with dividends declared per common share increasing for both the 12-week and 24-week periods, and significant share repurchases executed during the quarter.
Financial Highlights
50 data points| Revenue | $15.39B |
| Cost of Revenue | $6.83B |
| Gross Profit | $8.56B |
| SG&A Expenses | $5.58B |
| Operating Income | $2.96B |
| Interest Expense | $255.00M |
| Net Income | $2.00B |
| EPS (Basic) | $1.39 |
| EPS (Diluted) | $1.38 |
| Shares Outstanding (Basic) | 1.44B |
| Shares Outstanding (Diluted) | 1.46B |
Key Highlights
- 1Net revenue for the 12 weeks ended June 11, 2016, was $15.395 billion, a decrease of 3% compared to $15.923 billion in the prior year.
- 2Operating profit for the 12 weeks ended June 11, 2016, increased by 2% to $2.964 billion, driven by effective net pricing and productivity initiatives.
- 3Diluted earnings per share for the 12 weeks ended June 11, 2016, was $1.38, an increase of 4% compared to $1.33 in the prior year.
- 4The company recorded a significant $373 million impairment charge in the AMENA segment related to its investment in Tingyi-Asahi Beverages Holding Co. Ltd.
- 5Foreign exchange rates unfavorably impacted net revenue by 4 percentage points for both the 12-week and 24-week periods.
- 6PepsiCo's Frito-Lay North America (FLNA) division showed strong performance, with net revenue up 3% and operating profit up 8% for the 12-week period.
- 7The company continued its capital return program, with cash dividends declared per common share increasing to $0.7525 for the 12-week period and $1.455 for the 24-week period.