PepsiCo income up slightly in year

by FoodBusinessNews.net Staff
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PURCHASE, N.Y. — Net income at PepsiCo in the year ended Dec. 29 totaled $5,658 million, equal to $3.41 per share on the common stock, up slightly from $5,642 million, or $3.34 per share, during the previous year.

Net revenue for the year was $39,474 million, up 12% from $35,137 million during the previous year. Revenues were driven by snack volume growth of 6% and beverage volume growth of 4%. PepsiCo International had 9% snack growth and 8% beverage growth.

"Our strong top- and bottom-line results in 2007 once again demonstrated the balance and strength of our global portfolio," said Indra Nooyi, chairman and chief executive officer. "All of our segments posted solid results for the year."

Frito-Lay North America posted an operating profit of $2,845 million, up 9% from $2,615 million during the previous year. Revenue for the segment was $11,586 million, up 7% from $10,844 million during 2006.

PepsiCo Beverages North America posted an operating profit of $2,188 million, up 6% from $2,055 million during the previous year. Net revenue was $10,230 million, which compared with $9,565 million during 2006.

PepsiCo International posted an operating profit of $2,322 million, up 15% from $2,016 million during the previous year. The segment posted revenue of $15,798 million, up 22% from $12,959 million during the 2006.

Quaker Foods North America posted an operating profit of $568 million, which compared with $554 million during the pervious year. The segment posted revenue of $1,860 million, up 5% from $1,769 million during 2006.

For the fourth quarter ended Dec. 29, PepsiCo posted net income of $1,262 million, equal to 77c per share, down 31% from $1,826 million, or $1.09 per share, during the same quarter of the previous year. Net revenue for the quarter was $12,346 million, up 17% from $10,570 million during the same quarter of 2006.

"As we begin 2008, I am confident we have the right strategies in place to deliver full-year performance consistent with our long-term profit growth," Ms. Nooyi, said. "Our brands are some of the best loved trademarks in the world, and we’re continually adding to their vitality through exceptional innovation and unmatched go-to-market execution. We will fully leverage these advantages — together with enhanced productivity across the business system and effective net pricing — to address the challenge of accelerating input cost inflation."

The company said it expects 3% to 5% volume growth in 2008 along with mid-to-high single digit revenue growth and an e.p.s. of at least $3.72.

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