US: PepsiCo profits up, outlines fresh cost plan
PepsiCo said snacks volumes rose in 2013
PepsiCo today (13 February) reported higher annual profits and set out plans for a fresh cost-savings programme.
The results for the year to 28 December came alongside a plan for a new "productivity programme" that it said will save US$1bn between 2015 and the end of 2019. PepsiCo is part-way through a similar scheme that it has said will save $3bn between 2012 and 2014.
PepsiCo also announced a 15% increase in its annualised dividend and plans to buy back $5bn worth of shares this year.
In a lengthy announcement, PepsiCo also said it had decided, after an internal review, to keep its North American beverage business.
Shares in PepsiCo had inched up 0.3% to $81.49 at 07:37 ET.
The US food and beverage group booked a 9% rise in net income to US$6.74bn or its 2013 financial year.
Operating profit was up 7% at $9.71bn. Core constant currency operating profit, which excludes foreign exchange and charges from areas like restructuring and impairment, climbed 6% on the back of sales growth and productivity savings, PepsiCo said.
Net sales inched up 1% to $66.42bn. Organic net revenue grew 4%, with PepsiCo pointing to "effective net pricing". The Walkers crisps owner said snacks volumes increased 3%.
Revenue from PepsiCo's Frito-Lay North America and Latin America Foods divisions rose, although sales from Quaker Foods North America fell.
PepsiCo's fourth-quarter core earnings per share stood at $1.05, higher than a Wall Street consensus of $1.01.
Revenue was up 0.9% at $20.12bn, which according to data from Seeking Alpha, missed analyst forecasts.
Click here for the full release from PepsiCo.
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