PURCHASE, NY -- PepsiCo Inc.'s net income rose 17% in the fourth quarter, topping Wall Street estimates and suggesting that it's delivering on its turnaround plan.
The drink and snack giant earned $1.66 billion, or $1.06 a share, for the period ending Dec. 29, compared with $1.42 billion, or 89¢ a share, a year ago. Revenue fell 1% to $20 billion from $20.2 billion in the comparable period a year ago.
Chief executive Indra Nooyi said 2012 as a "transitional year," for PepsiCo as it implemented a cost-cutting program and ramped up its investment in its flagship brands.
That strategy has included increasing prices and spending more to market brands including Lay's. The PepsiCo chief has also put a renewed focus on U.S. soft drinks in a bid to revive laggings sales, after criticism from investors over the company losing market share to rival Coca-Cola Co.
PepsiCo's Americas beverage business saw organic sales grow 2.5% in the fourth quarter. Soda volume fell about 1%, but the company said it once again gained volume and market share.
PepsiCo Americas Foods volume climbed 6% in the quarter, helped by acquisitions and higher sales of Frito-Lay products in North America.
Overall, PepsiCo's organic sales rose 5%, led by 9% growth in developed and emerging markets.
For the full year, PepsiCo earned $6.18 billion, or $3.92 a share, versus $6.44 billion, or $4.03 per share, a year earlier. Annual revenue fell 2% to $65.49 billion from $66.5 billion.
The company forecast 2013 earnings to climb 7% from 2012's adjusted earnings of $4.10 a share to $4.39 a share.