Summary
PepsiCo, Inc. reported solid financial results for the period ending September 9, 2023. For the 36 weeks ended September 9, 2023, Net Revenue increased by 9% to $63.6 billion, and Net Income Attributable to PepsiCo decreased by 7% to $7.8 billion, compared to the same period in the prior year. This decrease in net income was largely influenced by a significant gain recognized in the prior year from the Juice Transaction, which did not recur in the current period, partially offset by charges taken in the prior year related to the Russia-Ukraine conflict and brand impairments. The company demonstrated strong top-line growth driven by effective net pricing across its diverse business segments. Operating profit for the 36-week period saw a slight decrease of 4% to $10.3 billion, impacted by higher operating costs, commodity price increases, and decreased organic volume. However, the 12-week period showed a robust 20% increase in operating profit to $4.0 billion, highlighting improved performance in the most recent quarter due to effective net pricing, productivity savings, and favorable mark-to-market gains on commodity derivatives.
Financial Highlights
51 data points| Revenue | $23.45B |
| Cost of Revenue | $10.68B |
| Gross Profit | $12.78B |
| SG&A Expenses | $8.76B |
| Operating Income | $4.01B |
| Interest Expense | $201.00M |
| Net Income | $3.09B |
| EPS (Basic) | $2.25 |
| EPS (Diluted) | $2.24 |
| Shares Outstanding (Basic) | 1.38B |
| Shares Outstanding (Diluted) | 1.38B |
Key Highlights
- 1Net Revenue for the 36 weeks ended September 9, 2023, increased by 9% to $63.6 billion, demonstrating strong top-line growth driven by effective net pricing.
- 2Diluted Net Income Attributable to PepsiCo per common share for the 36 weeks ended September 9, 2023, decreased by 7% to $5.62, primarily due to the absence of the prior-year gain from the Juice Transaction.
- 3Operating Profit for the 12 weeks ended September 9, 2023, increased by 20% to $4.0 billion, reflecting improved pricing strategies, productivity gains, and favorable commodity derivative impacts.
- 4The company experienced a decrease in organic volume across several segments, particularly in PBNA (PepsiCo Beverages North America) and LatAm (Latin America), indicating potential consumer demand pressures or shifts.
- 5Significant restructuring and impairment charges were noted in the prior year, which favorably impacted the current year's comparative results, particularly in the Europe and AMESA (Africa, Middle East and South Asia) divisions.
- 6PepsiCo generated strong Free Cash Flow of $5.2 billion for the 36 weeks ended September 9, 2023, a substantial increase from $4.0 billion in the prior year, supporting returns to shareholders.
- 7The company returned approximately $7.7 billion to shareholders in 2023 through dividends and share repurchases, signaling a commitment to capital allocation.