By Dave Sebastian
PepsiCo Inc. posted higher sales for the fourth quarter, beating analysts' expectations, as its namesake beverage and snacks drove gains along with sales in international markets.
The food-and-beverage company said sales rose 5.7% to $20.64 billion for the quarter ended Dec. 28, 2019, from the prior year. Analysts polled by FactSet were looking for $20.25 billion.
Shares rose 0.2% in premarket trading.
The company's organic revenue grew 4.3% for the latest period and said it anticipates the metric, which strips out the effect of currency swings and acquisitions, to grow 4% in 2020.
Revenue at its North American beverage division, the company's biggest contributor, rose 4%. Pepsi has said it is putting out a new beverage that combines cola and coffee called Pepsi Café in the U.S. in April.
In its Frito-Lay North America division, which produces potato chips and other snacks, sales rose 3%.
Latin America sales rose 5%, Europe sales rose 15% and sales in the Asia-Pacific, Australia, New Zealand and China region rose 8%. In Africa, the Middle East and South Asia, sales rose 3%.
Net income fell to $1.77 billion, or $1.26 a share, from $6.85 billion, or $4.83 a share, in the comparable quarter last year. The company booked $4.93 billion in income-tax benefit in the same period last year.
Adjusted earnings were $1.45 a share, ahead of the $1.44 a share analysts were looking for. The company expects adjusted per-share earnings to grow 7% in 2020.
Pepsi also said it has increased its annual dividend to $4.09 a share from $3.82 a share, payable in June.
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