8-KRegulation FD

PEPSICO INC 8-K Report, Regulation FD Disclosure (Jun 3, 2005)

Filed June 3, 2005For Securities:PEP

Summary

PepsiCo Inc. (PEP) filed an 8-K on June 3, 2005, to reaffirm its financial guidance for the 2005 fiscal year ahead of investor meetings. The company confirmed its expectation for mid-single-digit volume and net revenue growth on a 52-week basis, alongside approximately 8% division operating profit growth. Diluted Earnings Per Share (EPS) were projected to be at least $2.56 for the 52-week period. The filing also provided guidance including the impact of a 53rd week in fiscal 2005, which is expected to result in at least mid-single-digit net revenue growth, approximately 10% division operating profit growth, and EPS of at least $2.60. Cash flow expectations remain strong, with cash from operating activities anticipated around $5.7 billion, and net capital spending projected at approximately $1.6 billion. Additionally, PepsiCo reaffirmed its commitment to share repurchases, targeting $2.5 billion to $3.0 billion for the year.

Key Highlights

  • 1Reaffirmed 2005 52-week guidance for mid-single digit volume and net revenue growth.
  • 2Projected approximately 8% division operating profit growth on a 52-week basis.
  • 3Anticipated 2005 52-week Diluted EPS of at least $2.56.
  • 4Provided guidance for a 53-week fiscal year, including ~10% division operating profit growth and EPS of at least $2.60.
  • 5Expected cash from operating activities of approximately $5.7 billion and net capital spending of $1.6 billion.
  • 6Confirmed plan to repurchase $2.5 - $3.0 billion of common stock in 2005.
  • 7Guidance does not include potential impact of repatriating international cash under the American Jobs Creation Act (AJCA).

Frequently Asked Questions

The primary purpose of this 8-K filing is to reaffirm PepsiCo's financial guidance for the 2005 fiscal year to investors ahead of upcoming meetings. It provides updated expectations for revenue, profit, EPS, and cash flow.

The 53rd week is expected to positively impact results, leading to higher net revenue growth (at least mid-single digits versus mid-single digits for 52 weeks), approximately 10% division operating profit growth (versus ~8% for 52 weeks), and EPS of at least $2.60 (versus at least $2.56 for 52 weeks).

Yes, PepsiCo reaffirmed its intention to repurchase shares of its common stock in the amount of $2.5 billion to $3.0 billion during 2005, indicating a commitment to shareholder returns.

PepsiCo is evaluating the repatriation of international cash under the American Jobs Creation Act (AJCA). However, the earnings guidance provided in this report does not include any potential impact from this repatriation.