Early Access

10-QPeriod: Q3 FY2022

PEPSICO INC Quarterly Report for Q3 Ended Sep 3, 2022

Filed October 12, 2022For Securities:PEP

Summary

PepsiCo, Inc. reported strong financial results for the 36 weeks ended September 3, 2022, with net revenue increasing by 8% to $58.4 billion and operating profit rising by 24% to $10.7 billion. This robust performance was significantly boosted by a substantial gain from the divestiture of its juice brands (Tropicana, Naked, etc.) recognized in the period. Excluding this one-time gain, operating profit still showed healthy growth, indicating underlying business strength. Despite ongoing inflationary pressures on commodity and transportation costs, which impacted gross margins, PepsiCo demonstrated effective pricing strategies across its divisions, contributing to revenue growth. The company also highlighted its commitment to returning capital to shareholders, with significant dividend payments and share repurchases. Management indicated confidence in liquidity to meet operational and investment needs.

Financial Highlights

51 data points
Beta

Revenue

$21.97B

0.5% Gross Margin

Net Income

$2.70B

0.1% Net Margin

EPS (Diluted)

$1.95

Total Assets

$94.46B

Cash & Equivalents

$6.42B

Free Cash Flow

$4.42B

Financial Statements
Beta
Revenue$21.97B
Cost of Revenue$10.31B
Gross Profit$11.66B
SG&A Expenses$8.29B
Operating Income$3.35B
Interest Expense$190.00M
Net Income$2.70B
EPS (Basic)$1.96
EPS (Diluted)$1.95
Shares Outstanding (Basic)1.38B
Shares Outstanding (Diluted)1.39B

Key Highlights

  • 1Net revenue for the 36 weeks ended September 3, 2022, increased by 8% to $58.4 billion, compared to $54.2 billion in the prior year period.
  • 2Operating profit for the 36 weeks ended September 3, 2022, surged by 24% to $10.7 billion, driven significantly by a gain from the Juice Transaction.
  • 3The company repurchased approximately $1.2 billion of its common stock and paid $4.6 billion in dividends during the 36 weeks ended September 3, 2022, demonstrating a commitment to shareholder returns.
  • 4Despite inflationary pressures, effective net pricing was a key driver of revenue growth across most of PepsiCo's divisions.
  • 5The company incurred significant charges related to the Russia-Ukraine conflict, including $1.4 billion in pre-tax charges, primarily impacting the Europe division's operating profit.
  • 6Free cash flow for the 36 weeks ended September 3, 2022, was $3.98 billion, a decrease from $4.40 billion in the prior year period, largely due to working capital changes and higher tax payments.
  • 7PepsiCo continues to execute its productivity initiatives, aiming to streamline operations and manage costs.

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