Summary
PepsiCo Inc. reported solid financial results for the 12 weeks ended March 23, 2019, demonstrating revenue and profit growth compared to the prior year period. Net revenue increased by 3% to $12.88 billion, while operating profit saw a more significant rise of 11% to $2.01 billion, indicating improved operational efficiency and margin expansion. This growth was driven by a combination of increased net revenue and effective productivity savings, alongside favorable items like the impact of the Tax Cuts and Jobs Act and mark-to-market adjustments on commodity derivatives. Key strategic moves, such as the acquisition of SodaStream, are beginning to be integrated, contributing to segment performance, particularly in ESSA. Despite headwinds from unfavorable foreign exchange rates impacting certain international markets, the company maintained a strong focus on shareholder returns through significant share repurchases and dividend payments. The company's liquidity remains strong, supporting ongoing operations and strategic investments.
Financial Highlights
51 data points| Revenue | $12.88B |
| Cost of Revenue | $5.69B |
| Gross Profit | $7.20B |
| SG&A Expenses | $5.19B |
| Operating Income | $2.01B |
| Interest Expense | $267.00M |
| Net Income | $1.41B |
| EPS (Basic) | $1.01 |
| EPS (Diluted) | $1.00 |
| Shares Outstanding (Basic) | 1.41B |
| Shares Outstanding (Diluted) | 1.41B |
Key Highlights
- 1Net revenue increased by 3% to $12.88 billion for the 12 weeks ended March 23, 2019, compared to $12.56 billion in the prior year period.
- 2Operating profit rose by 11% to $2.01 billion, with operating profit margin improving to 15.6% from 14.4%, driven by net revenue growth and productivity savings.
- 3Diluted net income per common share increased by 6% to $1.00 from $0.94, reflecting the overall positive performance.
- 4The company reported a 4% increase in total servings volume for the period.
- 5Significant investing activities included $1.8 billion in cash paid for the SodaStream acquisition, alongside $0.4 billion in capital spending.
- 6Financing activities showed strong commitment to shareholders, with $2.3 billion returned through dividends and share repurchases, and $1.1 billion in new long-term debt issued, while $1.9 billion in long-term debt was repaid.
- 7The company continues to execute its multi-year productivity plans, with $26 million in charges recognized for the 2019 plan and substantial completion of the 2014 plan.