Vending

PepsiCo boosts Q4, FY 2022 revenue, beats expectations

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February 9, 2023

PepsiCo Inc. lifted its Q4 and FY 2022 revenue while income results were mixed, according to an earnings release. Q4 results surpassed analyst expectations.

Highlights include:

• Net revenue rose 10.9%, from $25.248 billion in Q4 2021 to $27.996 billion in the quarter ending Dec. 31, 2022.
• Full year net revenue rose 8.7%, from $79.474 billion in 2021 to $86.392 billion in 2022.
• Net income fell from $1.322 billion to $518 million in the comparative quarters.
• Net income rose from $7.618 billion to $8.91 billion in the comparative years.
• Diluted net income per share fell from 95 cents to 37 cents in the comparative quarters.
• Diluted net income rose from $5.49 to $6.42 in the comparative years.
• Core EPS was $1.67 for Q4 and $6.79 for FY 2022.
• Frito-Lay North America net revenue rose from $1.167 billion to $7.708 billion in the comparative quarters, and from $19.608 billion to $23.391 billion in the comparative years.
• Quaker Food North America net income rose from $912 million to $1.059 billion in the comparative quarters, and from $2.751 billion to $3.16 billion in the comparative years.
• PepsiCo Beverages North America net income rose from $7.644 billion to $8.105 billion in the comparative quarters, and from $25.276 billion to $26.213 billion in the comparative years.
• Latin America net revenue rose from $2.799 billion to $3.373 billion in the comparative quarters, and from $8.108 billion to $9.779 billion in the comparative years.
• Europe net sales fell from $4.345 billion to $4.258 billion in the comparative quarters and from $13.038 billion to $12.724 billion in the comparative years.
• Africa, Middle East and South Asia rose from $1.928 billion to $2.012 billion in the comparative quarters and from $6.078 billion to $6.438 billion in the comparative years.
• Asia Pacific, Australia, New Zealand and China Region rose from $1.453 billion to $1.481 billion in the comparative quarters and from $4.615 billion to $4.787 billion in the comparative years.

The company announced a 10% increase in its annualized dividend to $5.06 per share from $4.60 per share, effective with the dividend expected to be paid in June 2023, which represents its 51st consecutive increase.

Shares traded today at $174.31 against a 52-week range of $153.37-$186.84.

The quarterly revenue of approximately $28 billion beat analyst expectations by $1.17 billion and the non-GAAP EPS of $1.67 beat estimates by 2 cents, according to Seeking Alpha.

"We are pleased with our results for the fourth quarter and the full year as our business remained resilient and delivered another strong year of growth," chairman and CEO Ramon Laguarta said in the press release. "For 2023, we expect to deliver 6% organic revenue growth and 8% core constant currency earnings per share growth. We also announced a 10% increase in our annualized dividend, starting with our June 2023 payment which represents our 51st consecutive annual increase, and plan to repurchase approximately $1 billion worth of shares."