PepsiCo posted a 3% net revenue increase to US$10.38bn for the fourth quarter of 2006, with its Frito-Lay North America brand performing notably well.
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The company’s Frito-Lay unit saw revenue increases of 7% to reach $3.24bn for the fourth quarter, led by gains in trademark brands Doritos, Sunchips, Tostitos, Lay’s and Cheetos. Quaker Foods North America (QFNA) profits grew 5%, while volume declined slightly in the quarter, as gains in ready-to-eat cereals and oatmeal were offset by declines in side dishes and Aunt Jemima syrup and mix.
For the full year, the snacks and soft drinks giant reported net revenue up 8% to $35.14bn, while operating margins improved compared to the prior year as pricing and lower corporate unallocated costs more than offset the impact of higher input costs. Profit stood at $6.44bn for the 2006 financial year.
PepsiCo president and CEO Indra Nooyi said: “We are pleased with our performance for the quarter and the full year. Our international business performed particularly well, delivering double-digit revenue and operating profit growth, and Frito-Lay North America delivered robust sales and profit results.”
PepsiCo’s earnings of $1.06 per share grew 63% versus $0.65 per share for the fourth quarter of 2005. Excluding the impact of an extra reporting week in the prior year, net revenue increased over 7%.
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By GlobalData“We also made good progress on our key strategic initiatives: providing greater choices to consumers in the area of healthier snacks and beverages; strengthening our international presence; and advancing our business process transformation project, including our SAP systems implementation.” Nooyi added.
In its outlook the company said it expected continued strong performance in 2007, with mid-single-digit volume and net revenue growth during 2007, revenue growth outpacing volume growth, and EPS of at least $3.30 per share.
