Summary
PepsiCo, Inc. reported financial results for the 12 and 36 weeks ended September 7, 2024. For the 12-week period, net revenue saw a slight decrease of 1%, while operating profit declined by 4%. This was primarily attributed to increased operating costs, a decline in organic volume, and higher restructuring charges, partially offset by effective net pricing and productivity savings. The 36-week period presented a more positive picture, with net revenue increasing by 1% and operating profit growing by 3%, driven by effective net pricing and productivity savings, despite some operating cost increases and a decline in organic volume. Net income attributable to PepsiCo for the 12-week period decreased by 5% to $2.93 billion, resulting in diluted EPS of $2.13. However, for the 36-week period, net income increased by 4% to $8.06 billion, with diluted EPS at $5.84. The company highlighted operational challenges and strategic investments, particularly the impact of the Quaker Recall in the Quaker Foods North America division, which significantly affected its performance in the 36-week period. Despite these headwinds, PepsiCo demonstrated resilience through effective pricing strategies and ongoing productivity initiatives.
Financial Highlights
51 data points| Revenue | $23.32B |
| Cost of Revenue | $10.40B |
| Gross Profit | $12.92B |
| SG&A Expenses | $9.03B |
| Operating Income | $3.87B |
| Interest Expense | $219.00M |
| Net Income | $2.93B |
| EPS (Basic) | $2.13 |
| EPS (Diluted) | $2.13 |
| Shares Outstanding (Basic) | 1.37B |
| Shares Outstanding (Diluted) | 1.38B |
Key Highlights
- 1For the 12 weeks ended September 7, 2024, net revenue decreased by 1% to $23.3 billion, while operating profit decreased by 4% to $3.9 billion.
- 2For the 36 weeks ended September 7, 2024, net revenue increased by 1% to $64.1 billion, and operating profit increased by 3% to $10.6 billion.
- 3Net income attributable to PepsiCo for the 12-week period decreased by 5% to $2.93 billion ($2.13 diluted EPS), while for the 36-week period, it increased by 4% to $8.06 billion ($5.84 diluted EPS).
- 4The Quaker Foods North America (QFNA) division experienced a significant 18% net revenue decline in the 36-week period, largely due to a voluntary recall of certain bars and cereals.
- 5Operating profit in the Frito-Lay North America (FLNA) division saw a 9% decrease in the 12-week period and a 5% decrease in the 36-week period, attributed to operating costs and volume declines.
- 6PepsiCo generated $6.2 billion in net cash from operating activities for the 36-week period, a decrease from $7.6 billion in the prior year, resulting in free cash flow of $3.5 billion.
- 7The company repurchased $0.76 billion of stock and paid $5.37 billion in dividends during the 36-week period, underscoring its commitment to returning capital to shareholders.