Snacks, global beverages drive PepsiCo profit

by Staff
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PURCHASE, N.Y. — With the help of strong results in its snacking and international beverage businesses, income for PepsiCo, Inc. rose sharply in the fourth quarter and finished up 16% for the full-year 2009.

For the year ended Dec. 26, 2009, the company had income of $5,946 million, equal to $3.77 per share on the common stock, up 16% from $5,142 million, or $3.21 per share, during the previous year. Net revenue for the year was $43,232 million, down slightly from $43,251 million during the previous year.

“In 2009, strong execution of PepsiCo’s operational priorities enabled us to deliver healthy revenue and profit growth and generate strong cash flow despite the macroeconomic challenges across much of the world,” said Indra Nooyi, chairman and chief executive officer. “Our teams demonstrated their agility in balancing innovation and value, which enabled us to maintain consumer momentum while driving margin expansion. In addition, we continued to invest in R.&D., infrastructure and innovation to sustain our long-term growth.”

Operating profit for Frito-Lay North America was $3,258 million during the year, up 10% from $2,959 million during the previous year. Revenue for the unit during the year was $13,224 million, up 6% from $12,507 million during fiscal 2008.

The Quaker Foods North America division had operating profit of $628 million, up 8% from $582 million during the previous year. Revenue for the quarter was $1,884 million, down 1% from $1,902 million during the previous year.

Net earnings during the fourth quarter ended Dec. 26 was $1,434 million, or 90c per share, up 99% from $719 million, or 46c per share, during the same quarter of the previous year. Revenue for the quarter was $13,297 million, up 5% from $12,729 million during the same quarter of the previous year.

“In 2010 we are changing the rules of the game in North America beverages through the anticipated merger with our anchor bottlers coupled with the continuing activities to refresh our core brands,” Ms. Nooyi said. “We are extending our global leadership in snacks by continuing to innovate with new products and platforms and by accelerating our growth in developing markets. We will accelerate our commitment across all our product categories to build a more balanced and healthier portfolio of enjoyable and wholesome foods and beverages.”

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