Vending

PepsiCo lifts Q4 and FY 2021 revenue, beats analyst expectations

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February 10, 2022

PepsiCo Inc. boosted its revenue for the fourth quarter and full year ending Dec. 25, 2021, according to an earnings release, beating analyst expectations.

• Revenue rose 12.4% from $22.45 billion in Q4 2020 to $25.25 billion in Q4 2021 and 12.9% from $70.37 billion to $79.5 billion for the comparative years.
• Net income fell from $1.85 billion to $1.32 billion for the comparative quarters but rose from $7.12 billion to $7.62 billion for the comparative years.
• Core EPS rose 4% to $1.53 for the quarter and 12% to $6.26 for the full year.

Frito-Lay North America revenue rose from $5.44 billion to $6.16 billion in the comparative quarters and operating profit increased 10%, primarily reflecting net revenue growth and productivity savings.

Pepsico Beverages North America revenue fell from $546 million to $494 million and operating profit decreased 10%, primarily reflecting certain operating cost increases, including incremental transportation costs, a 37-percentage-point impact of higher commodity costs and higher advertising and marketing expenses.

Quaker Foods North America revenue rose from $836 million to $912 million and operating profit grew 8%, primarily reflecting effective net pricing and productivity savings, partially offset by certain operating cost increases, including incremental transportation costs, a 14-percentage-point impact of higher commodity costs and higher advertising and marketing expenses.

"Our full year net revenue growth meaningfully accelerated in 2021 versus the previous year and this gives us added confidence that the investments we've made in our people, brands, innovation, supply chain, go-to-market systems and digitization initiatives are working," chairman and CEO Ramon Laguarta said in the press release.

Shares traded today at $169.17 against a 52-week range of $128.32-$177.24.

The quarterly revenue of $25.25 billion beat analyst expectations by $1.01 billion while the non-GAAP EPS of $1.53 beat expectations by one cent, according to Seeking Alpha.

The company announced a 7% increase in its annualized dividend to $4.60 per share from $4.30 per share, effective with the dividend expected to be paid in June 2022. This represents the company's 50th consecutive annual dividend per share increase.

"For 2022, we expect to deliver 6% organic revenue growth, which is at the high end of our long-term target range and implies a strong acceleration in our organic revenue growth on a two-year basis," Laguarta said. "Additionally, we expect to deliver 8% core constant currency earnings per share growth, which reflects the impact of inflationary pressures across our value chain and planned investments in our business."