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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

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.