Did PepsiCo's earnings grow in 2024?

Yes, on both a GAAP and non-GAAP basis. GAAP EPS rose 6% to $6.95 and core constant currency EPS rose 9% to $8.16. Growth came mainly from pricing and productivity savings, while reported revenue was essentially flat because of currency headwinds and a volume decline.

What is PepsiCo's 2025 outlook?

Management expects low-single-digit organic revenue growth and mid-single-digit core constant currency EPS growth. Foreign exchange is expected to reduce reported revenue and core EPS growth by about 3 percentage points. Guidance is provided on a non-GAAP basis because the company cannot reliably predict FX and commodity mark-to-market effects.

Is the dividend increase meaningful for shareholders?

The annualized dividend rises 5% to $5.69 per share from $5.42, payable starting in June 2025. This is the 53rd consecutive annual increase, reflecting a long record of dividend growth. Total 2025 cash returns, including dividends of about $7.6 billion and buybacks of $1.0 billion, are projected at roughly $8.6 billion.

Why did Quaker Foods North America and North American beverages underperform?

Quaker operating profit fell 38% for the year, reflecting the Quaker recall, lower organic volume and higher operating costs, partly offset by a 12-point insurance recovery benefit. PepsiCo Beverages North America declined 11% on higher impairment charges tied to the Tropicana transaction, restructuring costs and lower volume. Management has pledged to improve North American performance in 2025.

Why do GAAP and core results differ so much in the quarter?

GAAP results include items such as restructuring and impairment charges, a Latin America indirect tax reserve and pension-related costs, which are excluded from core results. The fourth-quarter GAAP EPS comparison is also inflated by the prior-year quarter's large impairment charges. Core EPS, at $1.96 in Q4, is a better measure of underlying performance.

PEP 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 4, 2025. Cited figures are marked; the original filing is the authoritative source.

PepsiCo reported fourth-quarter and full-year 2024 results on February 4, 2025 (16 and 52 weeks ended December 28, 2024).

Full-year GAAP net revenue was essentially flat at $91.9 billion^a (+0.4%), with a 1.5-point foreign exchange headwind; organic revenue grew 2.0%, driven by 4% effective net pricing offset by a 2% decline in organic volume. GAAP EPS rose 6% to $6.95, while core constant currency EPS rose 9% to $8.16 on a non-GAAP basis. Operating profit increased 8% on a GAAP basis to $12.9 billion, though results were uneven across divisions: Europe and Asia Pacific improved sharply on prior-year impairments, while Quaker Foods North America fell 38% on the Quaker recall and North American volume weakness, and PepsiCo Beverages North America declined 11%.

Fourth-quarter results were mixed. Reported net revenue was flat at $27.8 billion^b, and organic revenue grew 2.1%. GAAP EPS was $1.11, up 17%, but this was flattered by the comparison with a prior-year quarter that included large impairment charges; core EPS was $1.96, up 14% on a constant currency basis.

Results were weighed down by North America, where Frito-Lay and PepsiCo Beverages North America posted organic volume declines, and by Latin America, where an indirect tax reserve and currency effects hurt profit. Free cash flow was pressured by lower operating cash flow of $12.5 billion^c (versus $13.4 billion), and net cash used for financing rose to $7.6 billion, largely due to higher dividend payments and debt management. Looking ahead, management guided to low-single-digit organic revenue growth and mid-single-digit core constant currency EPS growth for 2025, with an expected foreign exchange headwind of roughly 3 percentage points on reported revenue and core EPS.

Management also announced a 5% increase in the annualized dividend to $5.69^d per share, the 53rd consecutive annual increase, and expects total shareholder cash returns of about $8.6 billion in 2025. The company stated that its productivity initiatives are intended to fund commercial investment and support profitability, and it emphasized the need to improve performance in North America.

02—Key points

Key Highlights

FY2024 GAAP EPS of $6.95 (+6%); core constant currency EPS of $8.16 (+9%), a non-GAAP measure that excludes items such as restructuring, impairments and recall-related charges.
FY2024 organic revenue grew 2.0%, with effective net pricing of +4% offsetting a 2% decline in organic volume; reported net revenue was roughly flat at $91.9 billion.
Q4 2024 GAAP EPS of $1.11 (+17%) was boosted by the lapping of prior-year impairments; core EPS of $1.96 rose 14% on a constant currency basis.
Europe operating profit rose 163% for the full year on the absence of 2023 SodaStream impairments, while Quaker Foods North America operating profit fell 38% amid recall impacts and lower volume.
2025 guidance calls for low-single-digit organic revenue growth and mid-single-digit core constant currency EPS growth, with an approximately 3-point FX headwind and a core tax rate near 20%.
Annualized dividend raised 5% to $5.69 per share from $5.42, effective with the June 2025 payment, marking the 53rd consecutive annual increase; 2025 total cash returns are expected at about $8.6 billion.
North America remains the key concern: Frito-Lay and PepsiCo Beverages North America both saw organic volume declines, and management has committed to improving performance there.

03—Questions

Frequently Asked Questions

Did PepsiCo's earnings grow in 2024?
Yes, on both a GAAP and non-GAAP basis. GAAP EPS rose 6% to $6.95 and core constant currency EPS rose 9% to $8.16. Growth came mainly from pricing and productivity savings, while reported revenue was essentially flat because of currency headwinds and a volume decline.
What is PepsiCo's 2025 outlook?
Management expects low-single-digit organic revenue growth and mid-single-digit core constant currency EPS growth. Foreign exchange is expected to reduce reported revenue and core EPS growth by about 3 percentage points. Guidance is provided on a non-GAAP basis because the company cannot reliably predict FX and commodity mark-to-market effects.
Is the dividend increase meaningful for shareholders?
The annualized dividend rises 5% to $5.69 per share from $5.42, payable starting in June 2025. This is the 53rd consecutive annual increase, reflecting a long record of dividend growth. Total 2025 cash returns, including dividends of about $7.6 billion and buybacks of $1.0 billion, are projected at roughly $8.6 billion.
Why did Quaker Foods North America and North American beverages underperform?
Quaker operating profit fell 38% for the year, reflecting the Quaker recall, lower organic volume and higher operating costs, partly offset by a 12-point insurance recovery benefit. PepsiCo Beverages North America declined 11% on higher impairment charges tied to the Tropicana transaction, restructuring costs and lower volume. Management has pledged to improve North American performance in 2025.
Why do GAAP and core results differ so much in the quarter?
GAAP results include items such as restructuring and impairment charges, a Latin America indirect tax reserve and pension-related costs, which are excluded from core results. The fourth-quarter GAAP EPS comparison is also inflated by the prior-year quarter's large impairment charges. Core EPS, at $1.96 in Q4, is a better measure of underlying performance.

04—Continue

← View all 8-K filings