10-QPeriod: Q1 FY2025

PEPSICO INC Quarterly Report for Q1 Ended Mar 22, 2025

Filed April 24, 2025For Securities:PEP

Summary

PepsiCo, Inc. reported its first-quarter results for the period ending March 22, 2025, with a net revenue of $17.9 billion, a 2% decrease compared to the prior year's $18.25 billion. This decline was primarily attributed to unfavorable foreign exchange impacts and higher commodity costs, partially offset by productivity savings and effective net pricing. Operating profit saw a 5% decrease, falling to $2.58 billion from $2.72 billion in the same period last year, with operating margin contracting slightly to 14.4% from 14.9%. Net income attributable to PepsiCo decreased by 10% to $1.83 billion, resulting in diluted earnings per share of $1.33, down from $1.48 in the prior year. The company highlighted strategic investments, including the acquisition of Siete for $1.2 billion, which contributed to a significant increase in investing activities. Despite revenue pressures, PepsiCo continued to return capital to shareholders, with a 5% increase in its annualized dividend and ongoing share repurchase programs.

Financial Highlights

51 data points
Beta

Revenue

$17.92B

55.8% Gross Margin

Net Income

$1.83B

10.2% Net Margin

EPS (Diluted)

$1.33

Total Assets

$101.74B

Cash & Equivalents

$8.27B

Free Cash Flow

-$973.00M

Financial Statements
Beta
Revenue$17.92B
Cost of Revenue$7.93B
Gross Profit$9.99B
SG&A Expenses$7.41B
Operating Income$2.58B
Interest Expense$264.00M
Net Income$1.83B
EPS (Basic)$1.34
EPS (Diluted)$1.33
Shares Outstanding (Basic)1.37B
Shares Outstanding (Diluted)1.38B

Key Highlights

  • 1Net revenue for the quarter was $17.9 billion, a 2% decrease year-over-year, impacted by foreign exchange and commodity costs.
  • 2Operating profit decreased by 5% to $2.58 billion, with operating margin declining to 14.4% from 14.9%.
  • 3Net income attributable to PepsiCo declined 10% to $1.83 billion, and diluted EPS fell to $1.33 from $1.48.
  • 4The company completed the acquisition of Siete for $1.2 billion, contributing to increased investing activities.
  • 5Financing activities provided $1.8 billion in net cash, driven by significant debt issuances, while capital returns to shareholders included an increased dividend and share repurchases.
  • 6Restructuring charges of $213 million were recorded under the 2019 Productivity Plan, impacting earnings.
  • 7International operations faced headwinds from unfavorable foreign exchange, notably impacting revenue in EMEA and Latin America Foods segments.

Frequently Asked Questions

The decrease in net revenue was primarily driven by unfavorable foreign exchange translation, which had a 3 percentage point negative impact, and higher commodity costs. These were partially offset by productivity savings and effective net pricing.

PepsiCo acquired Siete for $1.2 billion in cash on January 17, 2025. This acquisition contributed to an increase in investing activities, with $1.2 billion in net cash used for investing activities during the quarter, primarily reflecting this acquisition and net capital spending.

PepsiCo announced a 5% increase in its annualized dividend to $5.69 per share and expects to return approximately $8.6 billion to shareholders in 2025, comprising dividends of roughly $7.6 billion and share repurchases of about $1.0 billion. The company has an ongoing $10 billion share repurchase program.

Yes, PepsiCo recorded $213 million in restructuring and impairment charges related to its 2019 Productivity Plan. This plan involves simplifying processes, re-engineering systems, and optimizing the manufacturing and supply chain footprint, with a total expected pre-tax charge of approximately $6.15 billion.