PepsiCo earnings Q4 2017

PepsiCo earnings Q4 2017

  • EPS: $1.31 per share, vs. $1.30 expected, according to Thomson Reuters
  • Revenue: $19.53 billion, vs. $19.39 billion expected, according to Thomson Reuters

The company boosted its annual dividend by 15 percent to $3.71 from $3.22 a share. It also announced a $15 billion stock buy-back program.

Pepsi’s stock was up less than 1 percent in pre-market trading.

“We are pleased with our performance for the fourth quarter and full year 2017. We met or exceeded most of the financial goals we set out at the beginning of the year. We delivered these results in the midst of a dynamic retail environment and rapidly shifting consumer landscape,” Chairman and CEO Indra Nooyi said in a statement.

For the quarter, Pepsi’s net revenue was flat when compared with the year-ago period. Organic revenue, which excludes the impacts of foreign exchange and other changes, grew by 2.3 percent.

Pepsi said its fourth-quarter revenue was impacted by a provisional net tax expense of $2.5 billion, due to the new tax code.

The beverage and snack giant saw the greatest sales growth in Europe Sub-Saharan Africa, where net sales jumped 11 percent. In North America, the beverage business continued to slide, with net sales dropping 6 percent.

Last quarter, PepsiCo’s CFO Hugh Johnston called weakness in its North American drinks business a “toe stub” as the company looks to balance its slow-growing core business with more on-trend innovations. Its most recent innovation includes “Bubly,” the company’s answer to the growth in sparkling water drinks.

Reported operating profit, which was impacted by a pension-related settlement charge, increased 9 percent.

For the year, Pepsi said net revenue increased 1.2 percent from last year and organic revenue by 2.3 percent. Reported operating profit increased 7 percent

Pepsi said also provided guidance on 2018. It expects full-year organic revenue growth to be at least in line with the 2017 growth rate. It anticipates core earnings per share of $5.70, a 9 percent increase over 2017.

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