PepsiCo continued to deliver quality double-digit earnings growth, with earnings per share for the fourth quarter of 2001 up 16% to 42¢ , on a comparable basis. For the full year, the company delivered earnings per share of $1.66, an increase of 14% over the comparable prior year.
"PepsiCo had an outstanding year. We completed the merger with Quaker while achieving our financial targets and we are now better positioned for growth than ever before," said chairman and chief executive officer Steve Reinemund. "The Quaker integration has brought no surprises and is solidly on track, which will allow us to focus on realizing all of the upsides from the transaction. During the past six months, we have uncovered new opportunities to grow profits and revenues in our businesses, and we are confident that we can meet our growth targets for 2002 and beyond."
On a reported basis, earnings per share for the 52-week year were $1.47, an increase of 4% over the company's 53-week 2000 fiscal year. For the 16-week fourth quarter, reported earnings were $0.37 per share, a decline compared with $0.39 in the 17-week fourth quarter of 2000.
Volume continued to be solid, with total servings of products sold worldwide up 3% for the quarter and 4% for the full year. Servings of snacks worldwide grew 5% for the quarter and the year. Worldwide servings of beverages grew 3% for the quarter and 4% for the year.
Revenues grew 5% to almost $8 billion for the quarter, and net income grew over 16% to $764 million. For the full year, revenues advanced 7% to almost $27 billion, and net income grew 15% to $3 billion.
Frito-Lay North America continued to deliver consistently strong results with another quarter of double-digit operating profit growth. Pound growth advanced 5%, led by solid performance in the core portfolio. Revenue and operating profits were primarily driven by increases in volume, as well as the impact of higher effective net pricing and a shift in mix. For the full year, volume grew 3%, led by "Lay's," "Cheetos," "Doritos" and "Fritos."
Management expects FLNA's consistent, strong performance to continue in 2002, with volume growing 4% to 5%, revenues increasing 7% to 8%, and profits growing approximately 10%.
Top-line momentum will be driven by a record level of new product introductions, including new salty snacks, a new line with flavors that appeal to Hispanic tastes, and line extensions. Also planned are new convenience food products such as "Quaker Fruit & Oatmeal Bites."
Pepsi-Cola North America had a strong quarter, with bottler case sales increasing 3%, driven by innovations including "Mountain Dew Code Red," "Pepsi Twist," "Aquafina," "Dole" and "SoBe." For the full year, 4% bottler case sales growth was driven by the acquisition of "SoBe," the introduction of hit products such as "Dole" fruit juices and juice drinks, "Mountain Dew Code Red," "Sierra Mist" and "Pepsi Twist" and continued strong growth in "Aquafina" bottled water.
PCNA's strong performance is expected to continue in 2002, with volume momentum led by innovation with new products such as "Diet Code Red"; "AMP," Mountain Dew's new energy drink; and "Brisk Lemonade."
For Gatorade/Tropicana North America, during the fourth quarter, solid volume growth from "Gatorade" could not overcome softness in "Tropicana's" volume, leading to a decline in GTNA volume of 1.5%.
For the full year, GTNA volume grew 4%. In 2002, GTNA results will be driven by its new combined sales force, as well as new products including "Gatorade Ice" with three new flavors; "Propel Fitness Water"; and "Tropicana Go-J," a single-serve, not-from-concentrate orange juice.
Fourth-quarter revenues declined 3% for Quaker Foods North America, reflecting a decline in ready-to-eat cereals and a slowdown in hot cereal growth. For the full year, total QFNA volume was down slightly. Looking ahead, QFNA expects volume to grow 1% to 2% and revenues to increase 2% to 3%.
PepsiCo reconfirmed its 2002 outlook of comparable 13% to 14% earnings per share growth. For the first quarter of 2002, earnings per share are expected to grow 13% to 14%.