Early Access

10-QPeriod: Q2 FY2024

PEPSICO INC Quarterly Report for Q2 Ended Jun 15, 2024

Filed July 11, 2024For Securities:PEP

Summary

PepsiCo, Inc. (PEP) reported solid financial results for the period ending June 15, 2024. For the twelve weeks ended June 15, 2024, Net Revenue increased by 1% to $22,501 million, and Operating Profit saw a significant increase of 11% to $4,048 million. Diluted Net Income Attributable to PepsiCo per common share rose by 13% to $2.23. For the twenty-four weeks ended June 15, 2024, Net Revenue grew by 1.5% to $40,751 million, and Operating Profit increased by 8% to $6,765 million. Diluted Net Income Attributable to PepsiCo per common share was up 10% to $3.71. The company highlighted effective net pricing and productivity savings as key drivers for these improvements, while also noting some operating cost increases and a decline in organic volume that partially offset gains. The Quaker Foods North America (QFNA) division was significantly impacted by a product recall, leading to a substantial decline in its net revenue and operating profit.

Financial Statements
Beta

Key Highlights

  • 1Net revenue for the 12 weeks ended June 15, 2024, increased 1% to $22.5 billion, and for the 24 weeks, it increased 1.5% to $40.8 billion.
  • 2Operating profit increased significantly by 11% to $4.0 billion for the 12-week period and by 8% to $6.8 billion for the 24-week period.
  • 3Diluted EPS grew 13% to $2.23 for the 12-week period and 10% to $3.71 for the 24-week period.
  • 4Quaker Foods North America (QFNA) experienced an 18% and 21% decline in net revenue for the 12- and 24-week periods, respectively, due to a product recall, with a substantial impact on operating profit.
  • 5PepsiCo Beverages North America (PBNA) showed resilience with a 1% revenue increase for both periods, and a strong operating profit increase of 37% (12 weeks) and 24% (24 weeks), benefiting from prior-year impairment charges.
  • 6The company's cash flow from operations was $1.3 billion for the 24-week period, down from $2.0 billion in the prior year, leading to negative free cash flow of ($259) million.
  • 7PepsiCo continues to manage its capital structure by returning approximately $8.2 billion to shareholders in 2024 through dividends and share repurchases.

Frequently Asked Questions