Gains in snacks and beverages boost PepsiCo profit

by Staff
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PURCHASE, N.Y. — Boosted by additional revenue from the acquisition of its bottlers, PepsiCo, Inc. posted a 6% increase in net income during 2010.

For the year ended Dec. 25, 2010, the company had income of $6,320 million, equal to $3.91 per share on the common stock, which compared with $5,946 million, or $3.77 per share, during fiscal 2009. Revenue for the year was $57,838 million, up 34% from $43,232 million during the previous year.

“We are pleased with PepsiCo’s performance in the fourth quarter and for the full year,” said Indra Nooyi, chairman and chief executive officer. “The underlying performance of our business remained solid despite a challenging macroeconomic environment. We posted broad-based worldwide gains in both snacks and beverages, our business deftly balanced a delicate price-value consumer equation, and we aggressively managed costs and productivity to deliver top-tier financial results.”

Operating profit for Frito-Lay North America was $3,549 million, up 9% from $3,258 million during the previous year. Revenue for the segment was $13,397 million, up 1% from $13,224 million during the previous year.

Quaker Foods North America had an operating profit of $568 million during the year, down 10% from $628 million during fiscal 2009. Revenue for the segment was $1,832 million, down 3% from $1,884 million during the previous year.

For the fourth quarter ended Dec. 25 the company as a whole posted income of $1,365 million, or 85c per share, down 5% from $1,434 million, or 90c per share, during the same quarter of the previous year. Revenue was $18,155 million, up 37% from $13,297 million during the same quarter of the previous year.

“We are encouraged by the momentum of our business as we enter 2011, and we are mindful of three realities: a weak consumer landscape given the poor macroeconomic picture, especially the high level of unemployment in key developed markets; high levels of cost inflation for the coming year, driven by broad and pronounced commodity inflation; and a potentially difficult competitive pricing environment, particularly in beverages,” Ms. Nooyi said.

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