Summary
PepsiCo reported strong first-quarter 2017 results, with net revenue increasing by 2% to $12.05 billion, driven by effective net pricing across its divisions. Net income attributable to PepsiCo surged by 41% to $1.32 billion, with diluted EPS growing by 43% to $0.91. This robust performance was significantly bolstered by a prior-year impairment charge related to the Tingyi transaction, which, when excluded, shows a more modest but still positive underlying growth. The company highlighted operational improvements across several segments, including growth in Frito-Lay North America and North America Beverages. Europe Sub-Saharan Africa also showed a significant rebound in operating profit. While Latin America faced challenges with declining operating profit due to cost increases and currency headwinds, the overall financial health of PepsiCo appears strong, supported by effective cost management and strategic pricing initiatives.
Financial Highlights
50 data points| Revenue | $12.05B |
| Cost of Revenue | $5.29B |
| Gross Profit | $6.76B |
| SG&A Expenses | $4.90B |
| Operating Income | $1.86B |
| Interest Expense | $252.00M |
| Net Income | $1.32B |
| EPS (Basic) | $0.92 |
| EPS (Diluted) | $0.91 |
| Shares Outstanding (Basic) | 1.43B |
| Shares Outstanding (Diluted) | 1.44B |
Key Highlights
- 1Net revenue increased 2% to $12.05 billion, primarily driven by effective net pricing strategies.
- 2Net income attributable to PepsiCo rose significantly by 41% to $1.32 billion, with diluted EPS up 43% to $0.91.
- 3Operating profit increased by 19% to $1.93 billion, largely due to favorable year-over-year comparisons, especially the absence of a prior-year impairment charge.
- 4Frito-Lay North America and North America Beverages divisions both showed healthy net revenue and operating profit growth.
- 5Europe Sub-Saharan Africa experienced a substantial 51% increase in operating profit, indicating a strong turnaround.
- 6The company announced a 7.0% increase in its annualized dividend to $3.22 per share, signaling confidence in its financial position.
- 7Cash flow from operations was negative ($199 million) for the quarter, primarily due to unfavorable working capital movements, though investing and financing activities provided positive net cash.