Summary
PepsiCo, Inc. reported strong financial performance for the period ending September 4, 2021. For the 36 weeks ended, net revenue increased by 13% to $54.2 billion, and operating profit saw a significant increase of 19% to $8.6 billion. Diluted earnings per share also grew by 20% to $4.54. The company highlighted robust organic revenue growth across its segments, driven by a combination of effective net pricing and volume increases, particularly in the Frito-Lay North America, PepsiCo Beverages North America, and international segments. Acquisitions in AMESA and APAC also contributed positively to revenue growth. Despite facing increased commodity and transportation costs, PepsiCo demonstrated effective cost management and productivity savings, which helped to offset these pressures and improve operating margins in several divisions. The company also noted a recovery in consumer demand following the COVID-19 pandemic, especially in its beverage and snack businesses. PepsiCo continues to manage its financial resources effectively, generating substantial operating cash flow and free cash flow, which supports its capital allocation strategies including dividends and share repurchases. The planned divestiture of certain juice brands is also expected to provide further financial flexibility.
Financial Highlights
51 data points| Revenue | $20.19B |
| Cost of Revenue | $9.39B |
| Gross Profit | $10.79B |
| SG&A Expenses | $7.64B |
| Operating Income | $3.16B |
| Interest Expense | $232.00M |
| Net Income | $2.22B |
| EPS (Basic) | $1.61 |
| EPS (Diluted) | $1.60 |
| Shares Outstanding (Basic) | 1.38B |
| Shares Outstanding (Diluted) | 1.39B |
Key Highlights
- 1Net revenue for the 36 weeks ended September 4, 2021, increased by 13% to $54.2 billion compared to the prior year period.
- 2Operating profit for the 36 weeks ended September 4, 2021, rose by 19% to $8.6 billion, indicating strong operational performance and cost management.
- 3Diluted earnings per share (EPS) for the 36 weeks ended September 4, 2021, grew by 20% to $4.54, reflecting improved profitability.
- 4Organic revenue growth was a key driver, with the company reporting a 9% increase for the 12-week period and 8% for the 36-week period, demonstrating underlying business strength across segments.
- 5The company experienced significant revenue growth in its international segments, including Latin America (27% for 12 weeks), AMESA (33% for 12 weeks), and APAC (27% for 12 weeks), partly due to acquisitions and favorable foreign exchange rates.
- 6Despite inflationary pressures from commodity and transportation costs, PepsiCo managed to increase operating profit through productivity savings and effective net pricing strategies.
- 7PepsiCo generated $6.6 billion in net cash from operating activities for the 36 weeks ended September 4, 2021, and $4.4 billion in free cash flow, supporting shareholder returns and strategic investments.