Summary
PepsiCo Inc. reported mixed financial results for the 12 weeks ended June 14, 2025. While net revenue saw a modest 1% increase to $22.7 billion, the company experienced a significant 56% decline in operating profit, falling to $1.8 billion. This sharp decrease in profitability was largely driven by a substantial $1.9 billion impairment charge related to the Rockstar and Be & Cheery brands. Excluding this one-time charge, operating profit showed a more moderate decline. For the 24-week period, net revenue remained flat at $40.6 billion, while operating profit declined 35% to $4.4 billion, also impacted by brand impairments and higher costs. The company completed significant acquisitions during the period, including Siete and poppi, which are expected to contribute to future growth. Despite the profitability challenges in the current quarter, PepsiCo continues to return capital to shareholders through dividends and share repurchases and has access to substantial credit facilities.
Financial Highlights
51 data points| Revenue | $22.73B |
| Cost of Revenue | $10.30B |
| Gross Profit | $12.42B |
| SG&A Expenses | $8.77B |
| Operating Income | $1.79B |
| Interest Expense | $260.00M |
| Net Income | $1.26B |
| EPS (Basic) | $0.92 |
| EPS (Diluted) | $0.92 |
| Shares Outstanding (Basic) | 1.37B |
| Shares Outstanding (Diluted) | 1.37B |
Key Highlights
- 1Net revenue for the 12-week period increased 1% to $22.7 billion, while the 24-week revenue remained flat at $40.6 billion.
- 2Operating profit for the 12-week period significantly declined by 56% to $1.8 billion, primarily due to a $1.9 billion impairment charge on the Rockstar and Be & Cheery brands.
- 3The company completed two key acquisitions: Siete for $1.2 billion and poppi for $1.95 billion.
- 4Net cash provided by operating activities decreased to $996 million for the 24-week period, down from $1.3 billion in the prior year, resulting in negative free cash flow of $342 million.
- 5PepsiCo continues to prioritize returning capital to shareholders, with expected total distributions of approximately $8.6 billion in 2025 through dividends and share repurchases.
- 6The company's international operations generated 41% of consolidated net revenue for the 24-week period, with ongoing monitoring of geopolitical and economic risks in key international markets.
- 7Effective net pricing was a key driver for revenue growth in several segments, partially offsetting volume declines in some areas.