Vending

PepsiCo Q4 2020 revenue and earnings surge, beat analyst expectations

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February 11, 2021

PepsiCo Inc.'s fourth quarter revenue rose 8.8% from $20.6 billion in last year's fourth quarter to $22.4 billion for the quarter ending Dec. 26, 2020.

Annual revenue rose from $67.1 billion in 2019 to $70.3 billion in 2020, according to a press release.

Net income rose from $1.7 billion in 2019's fourth quarter to $1.84 billion in 2020, while net come declined from $78.3 billion in 2019 to $7.1 billion in 2020.

Net income attributable to PepsiCo per common share rose from $1.26 in 2019's fourth quarter to $1.33 in 2020's fourth quarter.

The company' 5.7% growth in organic revenue topped market expectations for the quarter by 4.1%, according to Seeking Alpha.

Shares traded at $136.18 today against a 52-week range of $101.67-$148.30.

"We ended the year on a strong note with our global beverage business having accelerated while our global snacks and food business remained resilient in the fourth quarter," Chairman and CEO Ramon Laguarta said in the release. "Our results were indicative of the strength and resilience of our highly dedicated employees, diversified portfolio, agile supply chain and go-to-market systems and strong marketplace execution even in the face of difficult COVID-19 challenges."

"For 2021, we are planning for our organic revenue and core constant currency EPS growth to be consistent with our long-term objectives. We have also announced a 5 percent increase in our annualized dividend, starting with the June 2021 dividend payment."

Frito-Lay North America operating profit decreased 4%, primarily reflecting certain operating cost increases and a 5% impact of higher restructuring and impairment charges, partially offset by productivity savings and net revenue growth.

Additionally, the charges taken as a result of COVID-19 negatively impacted operating profit performance by 2%.

Quaker Foods North America operating profit grew 17%, primarily reflecting net revenue growth, productivity savings and lower advertising and marketing expenses, partially offset by certain operating cost increases. Additionally, the charges taken as a result of the pandemic reduced operating profit growth by 2%.

PepsiCo Beverages North America operating profit grew 19%, primarily reflecting net revenue growth, productivity savings, lower advertising and marketing expenses and a 6% impact of lower commodity costs. These impacts were partially offset by certain operating cost increases, including incremental information technology costs, a 3% impact of a prior-year gain on an asset sale and a 2% impact of the charges taken as a result of the COVID-19 pandemic.

For an update on how the coronavirus pandemic has affected convenience services, click here.