Summary
PepsiCo, Inc. (PEP) filed an 8-K on September 4, 2013, providing forward-looking guidance in advance of the Barclays Back-to-School Consumer Conference. The company reiterated its expectation for 2013 core constant currency Earnings Per Share (EPS) growth of 7%, based on its fiscal 2012 core EPS of $4.10. Management indicated that foreign exchange translation is anticipated to negatively impact full-year core EPS by at least 2 percentage points, a key consideration for investors. Furthermore, PepsiCo expects organic revenue for 2013 to grow in the mid-single digits, consistent with its long-term outlook. This guidance excludes the impact of structural changes, such as beverage refranchisings, which are expected to reduce net revenue growth by approximately 1%, and foreign exchange translation, projected to have an unfavorable impact of about 2 percentage points on net revenue. The company also confirmed that President Zein Abdalla would be presenting at the conference, with materials available on their investor relations website.
Key Highlights
- 1Reiterated 2013 core constant currency EPS growth guidance of 7% (based on $4.10 in FY12).
- 2Anticipates an unfavorable foreign exchange impact of at least 2 percentage points on full-year 2013 core EPS.
- 3Expects 2013 organic revenue growth in the mid-single digits, consistent with long-term guidance.
- 4Structural changes, primarily beverage refranchisings, are expected to reduce net revenue growth by approximately 1%.
- 5Foreign exchange translation is projected to negatively impact full-year net revenue growth by approximately 2%.
- 6President Zein Abdalla scheduled to present at the Barclays Back-to-School Consumer Conference on September 4, 2013.
- 7Presentation webcast and replay will be available on PepsiCo's investor relations website.