QUICK LINKS: Vending Videos  |  Micromarkets  |

VT Classifieds

|

Buy a Classified Ad

|

Editorial Calendars

|

Circulation Data

|

Downloads

|

Bookstore

|

Operators Date Book

Search:      

Bookmark this site




Issue Date: Vol. 52, No. 3, March 2012, Posted On: 2/11/2012


Pepsico Reports Better-Than-Expected Fourth-Quarter Earnings, But Company Says It Will Cut 8,700 Jobs


by Staff Reporter
PepsiCo, Pepsi soda, Tropicana juice, Frito-Lay snacks, vending machine business

PURCHASE, NY -- PepsiCo reported better-than-expected fourth-quarter results. But the beverage and snack giant forecast a decline in adjusted 2012 earnings.

The maker of Pepsi soda, Tropicana juice and Frito-Lay snacks also plans to cut 8,700 jobs, or about 3% of its workforce to offset high commodity costs. (Snack and soda makers are facing high commodity costs and changing consumer tastes toward healthier snacks and drinks.) It expects the restructuring will save an additional $1.5 billion by 2014 -- on top of $1.5 billion in cost cutting it previously announced. Additionally, the Purchase, NY, company reportedly plans to increase advertising and marketing behind its brands by $500 million to $600 million in 2012.

"In 2011, we delivered solid top- and bottom-line growth," said PepsiCo chairman and chief executive Indra Nooyi. "We continued to stimulate strong consumer demand for our products, and our successful pricing and productivity programs partially offset the impacts of inflation. Importantly, in a year characterized by a challenging macroeconomic environment and political turbulence, we took advantage of gains from strategic adjustments to our portfolio to reinvest in key capabilities and markets."

Nooyi said PepsiCo also improved its long-term competitiveness in key emerging and developing markets through the acquisition of Wimm-Bill-Dann in Russia, and pursuing new franchise models for beverage operations in Mexico and China. The acquisition of Mabel extended Pepsico's macrosnack position in Brazil.

PepsiCo's net income for the quarter, ended Dec. 31, rose 4% to $1.42 billion, or 89¢ share. That's up from $1.37 billion, or 85¢ a share last year. Excluding restructuring and other costs, net income was $1.15 a share.

Revenue rose 11% to $20.16 billion. Higher prices and cost cuts helped offset higher commodity costs. Volume rose 7%.

The company took a $383 million charge in the fourth quarter related to the restructuring plan and said it will take $425 million in charges in 2012. It will take $100 million in charges between 2013 and 2015.

For the year, net income rose 2% to $6.46 billion, or $4.03 a share, compared with $6.33 billion, or $3.91 per share. Revenue rose 15 % to $66.5 billion from $57.84 billion.

PepsiCo says it expects adjusted 2012 earnings to fall 5% in 2012 during a transition and then rise in the high single digits after that.


Topic: Vending Features

Articles:
  • Fresh Healthy Vending Launches Customized Mobile Payment, Loyalty App For Micromarkets
  • Coca-Cola Grants Chicagoland Territory To Great Lakes Coca-Cola Distribution
  • Young Autistic Man Realizes Dream By Starting His Own Vending Business
  • Farmer's Fridge Salad Vending Machines Head To California
  • AVT's Shannon Illingworth Named Entrepreneur Award Finalist

Copyright © 2014 Vending Times Inc. All rights reserved. 
P: (516) 442-1850 | F: (516) 442-1849 | subscriptions@vendingtimes.net
55 Maple Ave. - Ste. 304, Rockville Centre, NY 11570