PepsiCos Sales Rise In North America Revenue Beats Estimates

PURCHASE, NY -- PepsiCo Inc. reported better-than-expected quarterly net revenue today, citing higher sales of snacks and noncarbonated beverages like Gatorade in North America. Improved sales helped to reduce the impact of a strong dollar, the company said.

PepsiCo increased its annual dividend to $3.01 a share from $2.81, and said it would return about $7 billion to shareholders this year, with about $3 billion through buybacks.

However, the company forecast 2016 adjusted earnings below many analyst estimates, citing a strong dollar and the exclusion of its Venezuelan business from its financial statements.

Revenue generated by PepsiCo's North American beverages business rose 2% in the fourth quarter, ended Dec. 26, representing 31.5% of total revenue.

PepsiCo chief executive Indra Nooyi said warmer-than-usual weather also helped the company's drinks business. "Gatorade does well when the temperature's above normal," she told analysts.

Higher prices and smaller package sizes helped improve revenue by 2% in the company's North America snack foods business. Frito-Lay Inc. is the division of PepsiCo that manufactures, markets and sells corn chips, potato chips and other snack foods. Fritos, Cheetos, Doritos, Lay's and Ruffles and Rold Gold are among the Frito-Lay brands popular in vending.

Frito-Lay North America and the North America beverage business were the only two PepsiCo divisions to report higher revenue in the quarter. Net income attributable to PepsiCo rose 31% to $1.72 billion, or $1.17 per share in the period.

PepsiCo predicts 2016 adjusted earnings of $4.66 per share. It expects organic revenue growth of about 4% in 2016.

Pepsi rival Coca-Cola Co. on Feb. 9 reported better-than-expected quarterly revenue and profit, aided by sales of smaller cans and bottles, aggressive cost-cutting measures and lower commodity costs. | SEE STORY

Click here to see PepsiCo's official fourth-quarter and full-year 2015 report.