Summary
PepsiCo, Inc. reported solid financial results for the period ending September 9, 2017. The company demonstrated growth in net revenue and operating profit for both the 12-week and 36-week periods compared to the prior year. Net income attributable to PepsiCo also saw a significant increase, reflecting effective cost management and strategic pricing initiatives across its diverse segments, including Frito-Lay North America and Europe/Sub-Saharan Africa. The company continued to return value to shareholders through dividend increases and share repurchases, underscoring its commitment to financial stewardship.
Financial Highlights
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Financial Statements
Beta
| Revenue | $16.24B |
| Cost of Revenue | $7.37B |
| Gross Profit | $8.87B |
| SG&A Expenses | $5.95B |
| Operating Income | $2.92B |
| Interest Expense | $269.00M |
| Net Income | $2.14B |
| EPS (Basic) | $1.50 |
| EPS (Diluted) | $1.49 |
| Shares Outstanding (Basic) | 1.43B |
| Shares Outstanding (Diluted) | 1.44B |
Key Highlights
- 1Net revenue increased by 1% for the 12-week period and 2% for the 36-week period, indicating sustained top-line growth.
- 2Operating profit saw a healthy increase of 6% for the 12-week period and 7% for the 36-week period, demonstrating effective cost control and operational efficiency.
- 3Net income attributable to PepsiCo increased by 8% for the 12-week period and 13% for the 36-week period, showcasing improved profitability.
- 4Diluted earnings per share (EPS) grew by 9% for the 12-week period and 14% for the 36-week period, providing a positive return to shareholders.
- 5The Frito-Lay North America segment showed strong performance with a 3% net revenue growth and 5% operating profit growth for both periods.
- 6The Europe Sub-Saharan Africa (ESSA) segment reported robust net revenue growth of 8% and 12% for the 12-week and 36-week periods respectively, with operating profit growing 12% and 31%.
- 7PepsiCo announced a 7.0% increase in its annualized dividend, reflecting confidence in its financial health and commitment to shareholder returns.
Frequently Asked Questions
For the 12 weeks ended September 9, 2017, PepsiCo reported net revenue of $16,240 million, an increase of 1% compared to the prior year. Operating profit grew 6% to $2,993 million. For the 36 weeks ended September 9, 2017, net revenue was $43,999 million, up 2%, and operating profit increased by 7% to $7,916 million.
Frito-Lay North America (FLNA) showed steady growth with 3% net revenue increase and 5% operating profit increase for both the 12- and 36-week periods. North America Beverages (NAB) experienced a 3% net revenue decrease in the 12-week period but was flat for the 36-week period, with operating profit down 10% and 2% respectively. Europe Sub-Saharan Africa (ESSA) was a strong performer, with net revenue up 8% and 12% for the respective periods, and operating profit up 12% and 31%.
PepsiCo continues to prioritize shareholder returns. The company announced a 7.0% increase in its annualized dividend to $3.22 per share. For 2017, PepsiCo expects to return approximately $6.5 billion to shareholders through dividends and share repurchases, with $2.0 billion allocated to share repurchases and $4.5 billion to dividends.
For the 36 weeks ended September 3, 2016, there was a $373 million impairment charge related to an investment in Tingyi-Asahi Beverages Holding Co. Ltd. (TAB), which impacted comparability. The company also incurred restructuring and impairment charges across various periods related to its multi-year productivity plan.