PepsiCo 4Q Revenue Slips on Volume Drop for Frito-Lay, Quaker
February 04, 2025 at 06:58 am EST
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By Dean Seal
PepsiCo recorded a higher quarterly profit despite a small drop in revenue as volumes in its main North American segments declined.
The Purchase, N.Y., snacks and soda maker posted fourth-quarter net income of $1.52 billion, or $1.11 a share, for the quarter ended Dec. 28. That is up from $1.3 billion, or 94 cents a share, in the same quarter a year before.
Stripping out one-time items, adjusted earnings were $1.96 a share. Analysts polled by FactSet had expected $1.94 a share.
Revenue declined slightly year-over-year to $27.78 billion, below analyst forecasts for $27.89 billion, according to FactSet.
Foreign currency translation weighed on the top line, which was up 2.1% on an organic basis.
Volumes were down in the company's Frito-Lay and Quaker Foods segments in North America, and flat for its North American beverages business and Latin America segment. Volumes were higher in its other international markets.
For fiscal 2025, PepsiCo said it expects revenue to rise by a low-single-digit percentage, and a mid-single-digit percentage rise in core, constant-currency earnings per share.
The company also said it planned to raise its annualized dividend by 5% to $5.69 a share later this year.
PepsiCo, Inc. is one of the worldwide leaders in producing non-alcoholic beverages and snacks. Net sales break down by area of activity as follows:
- North America (60.8%): sale of beverages (49.7% of net sales; sodas, concentrated juices, water, tea and coffee-based beverages; Aquafina, Diet Mountain Dew, Diet Pepsi, Gatorade, Gatorade Zero, Mountain Dew, Pepsi, Propel brands, etc.), snacks (44.7%; chips, tortillas and pretzels; Lay's, Doritos, Tostitos, Cheetos, Fritos, Ruffles, etc.), and cereals (5.6%; ready-to-eat cereals, rice, wheat, etc.);
- Europe (14.5%): sale of snacks (Cheetos, Chipita, Doritos, Lay's, Ruffles and Walkers brands) and beverages (7UP, Diet Pepsi, Lubimy Sad, Mirinda, Pepsi and Pepsi Max);
- Latin America (12.7%): sales of snacks (Cheetos, Doritos, Emperador, Lay's, Mabel, Marias Gamesa, Ruffles, Sabritas, Saladitas and Tostitos brands) and beverages (7UP, Gatorade, H2oh!, Manzanita Sol, Mirinda, Pepsi, Pepsi Black, San Carlos and Toddy)
- Asia/Pacific/Australia/New Zealand (6.7%): sale of snacks (BaiCaoWei, Cheetos, Doritos, Lay's and Smith's brands), beverages and syrups (7UP, Aquafina, Mirinda, Mountain Dew, Pepsi and Sting);
- Africa/Middle East/South Asia (5.3%): sale of snacks (Chipsy, Doritos, Kurkure, Lay's, Sasko, Spekko and White Star brands) and beverages (7UP, Aquafina, Mirinda, Mountain Dew and Pepsi).
Net sales are distributed geographically as follows: the United States (57%), Mexico (7.7%), Canada (4.1%), Russia (3.9%), China (3%), the United Kingdom (2.1%), Brazil (1.9%), South Africa (1.9%) and other (18.4%).