Summary
PepsiCo Inc. reported financial results for the 12 and 24 weeks ended June 16, 2018, reflecting steady revenue growth and operational adjustments. For the 24-week period, net revenue increased by 3% to $28.7 billion, while operating profit saw a modest 1% rise to $4.8 billion. The company's diluted earnings per share (EPS) for the 24-week period decreased by 7% to $2.21, impacted by a significant provisional net tax expense related to the Tax Cuts and Jobs Act (TCJ Act) and other items affecting comparability. Key operational highlights include volume growth across most divisions, particularly in snacks and beverages outside North America, alongside effective net pricing strategies. However, rising commodity costs presented a headwind, impacting operating profit growth. The company also completed significant pension contributions and continued its restructuring efforts under the 2014 Productivity Plan, which are expected to yield future efficiencies. PepsiCo maintained a strong liquidity position, with substantial cash reserves and access to credit facilities, and continued to return capital to shareholders through dividends and share repurchases.
Financial Highlights
50 data points| Revenue | $16.09B |
| Cost of Revenue | $7.26B |
| Gross Profit | $8.83B |
| SG&A Expenses | $5.80B |
| Operating Income | $3.03B |
| Interest Expense | $308.00M |
| Net Income | $1.82B |
| EPS (Basic) | $1.28 |
| EPS (Diluted) | $1.28 |
| Shares Outstanding (Basic) | 1.42B |
| Shares Outstanding (Diluted) | 1.43B |
Key Highlights
- 1Net revenue for the 24 weeks ended June 16, 2018, increased by 3% to $28.7 billion, driven by volume growth and effective net pricing.
- 2Operating profit for the 24-week period grew by 1% to $4.8 billion, though impacted by higher commodity costs and other operational expenses.
- 3Diluted EPS for the 24-week period decreased by 7% to $2.21, largely due to a provisional net tax expense related to the Tax Cuts and Jobs Act and other items affecting comparability.
- 4The company made significant discretionary contributions to its pension plans ($1.4 billion to U.S. Plan A), impacting operating cash flow but aligning with long-term financial management.
- 5Restructuring charges of $44 million were incurred in the 24-week period as part of the ongoing 2014 Productivity Plan, aimed at enhancing efficiency.
- 6PepsiCo continued its commitment to returning capital to shareholders, with $2.3 billion in dividends declared and $0.98 billion in share repurchases during the 24-week period.
- 7Foreign exchange had a positive impact, contributing 1 percentage point to net revenue growth for the 24-week period.