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PepsiCo Posts Q4 Net Loss Flat Revenues Announces Job Cuts

PURCHASE, NY -- PepsiCo Inc. posted a net loss of $710 million or 50¢ per share, for the 2017 fourth quarter compared with year-earlier profit of $1.40 billion or 97¢ a share, reflecting a $2.5 billion one-time charge related to new U.S. tax laws. Fourth quarter revenue was essentially flat at $19.53 billion in the quarter ended Dec. 31 versus $19.51 a year earlier as higher demand for its snacks offset a continued decline in sales of its sugary drinks. The snack and beverage giant also said that efforts...

February 21, 2018

PURCHASE, NY -- PepsiCo Inc. posted a net loss of $710 million or 50¢ per share, for the 2017 fourth quarter compared with year-earlier profit of $1.40 billion or 97¢ a share, reflecting a $2.5 billion one-time charge related to new U.S. tax laws.

Fourth quarter revenue was essentially flat at $19.53 billion in the quarter ended Dec. 31 versus $19.51 a year earlier as higher demand for its snacks offset a continued decline in sales of its sugary drinks. The snack and beverage giant also said that efforts to cut costs helped protect its bottom line.

North American beverages revenue fell to $5.9 billion from $6.3 billion a year ago. PepsiCo's revenue from its Frito-Lay snack business also declined to $4.8 billion in the quarter compared with $4.9 billion a year ago.

On an organic basis, sales at Pepsi's Frito-Lay snacks division climbed 5%, fueled by higher demand for salty snacks and helped by price increases. The snacks business contributes about 25% of overall revenue. Organic revenue dropped 3% in PepsiCo's beverage business.

"We are pleased with our performance for the fourth quarter and full year 2017," said PepsiCo chairwoman and chief executive Indra Nooyi. "We met or exceeded most of the financial goals we set out at the beginning of the year. We delivered these results in the midst of a dynamic retail environment and rapidly shifting consumer landscape."

The company also said that it will lay off some of its corporate employees in the U.S., which will be equivalent to 1% of its 110,000 employees. Since 2015, PepsiCo has cut about $1 billion costs a year by closing manufacturing facilities and cutting jobs.