US: PepsiCo profits up, outlines fresh cost plan

By Dean Best | 13 February 2014

PepsiCo said snacks volumes rose in 2013

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.

Sectors: Cereal, Dairy, Financials, Snacks

Companies: PepsiCo

There are currently no comments on this article

Be the first to comment on this article

Related research

PepsiCo, Inc. (PEP) - Financial and Strategic SWOT Analysis Review

PepsiCo, Inc. (PEP) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by GlobalData to bring to you a clear and an unbiased view o...

Pepsico inc in Packaged Food (World)

PepsiCo has benefited from its strong presence in sweet and savoury snacks, which continue to make up the majority of its sales in packaged food. It did however reduce its reliance on this category with the acquisition of Russian dairy player Wimm-Bi...

PepsiCo do Brasil Ltda in Packaged Food (Brazil)

PepsiCo do Brasil is expected to strengthen its presence in biscuits through brand extensions of popular and traditional brands such as Toddy and Quaker, which received investment to introduce biscuits variants in late 2012. The company also aims to ...

Related articles

US: Snacks help PepsiCo beat Wall St forecasts

PepsiCo reported first-quarter top and bottom lines that beat Wall Street estimates today (17 April), helped by solid growth from the US group's snacks business.

INDIA: PepsiCo takes Kurkure to Canada and Gulf

PepsiCo has announced it is to launch Indian snack brand Kurkure to the Canadian and Gulf markets.

UK: NPD vital to thrive in breakfast battle, says Mornflake

UK cereal group Mornflake has launched two more products into the country's convenience breakfast category and said innovation is crucial as competition heats up.

Read more on this hot issue

Food majors announce 2013 results

Nestle, PepsiCo and Mondelez International have been among the manufacturers in recent days that have reported on how they fared in 2013

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page