Higher sales of snacks and beverages in North America helped reduce the impact of a strong dollar which helped PepsiCo Inc reported better-than-expected quarterly net revenue.
Pepsi said that it would return about $7 billion to shareholders this year among which about $3 billion would be provided through buybacks even as the company increased its annual dividend to $3.01 per share from $2.81.
Citing a strong dollar and the exclusion of its Venezuelan business from its financial statements adjustments were made by the company in its forecast for 2016 earnings below the estimates of the analysts.
While accounting for 31.5 percent of total revenue, there was a 2 percent in the fourth quarter ended Dec. 26 in the revenue from PepsiCo's North American beverages business which the company started breaking out from the third quarter.
As consumers in North America, its biggest market, become more calorie-conscious and opt for products that are perceived to be healthier, PepsiCo has been introducing beverages with less sugar and more natural ingredients.
Helped by aggressive pricing and "solid" sales of Gatorade and Starbucks ready-to-drink coffee, which Pepsi distributes, PepsiCo's beverage sales in U.S. convenience stores rose 3.2 percent in the quarter, said Wells Fargo Securities in a pre-earnings note quoting from its research on the issue.
On similar lines, helped by sales of smaller cans and bottles, aggressive cost-cutting and lower commodity costs, the traditional rival Coca-Cola Co reported better-than-expected quarterly revenue and profit on Tuesday.
There was also a 2 percent rise in the revenue that the company’s snacks business, that includes Frito-lay and Doritos chips, managed to generate from North America.
The only two units to report higher revenue in the quarter were the Frito-Lay North America and the North America beverage business.
The attributable net income of PepsiCo rose from $1.31 billion, or 87 cents per share, a year earlier to touch to $1.72 billion or $1.17 per share in the period.
Excluding items, the company earned $1.06 per share. The net revenue fell 7 percent to $18.59 billion.
According to Thomson Reuters I/B/E/S, analysts on average had expected earnings of $1.06 per share on net revenue of $18.51 billion.
Short of the average analyst estimate of $4.76, PepsiCo forecast 2016 adjusted earnings of $4.66 per share.
Organic revenue growth of about 4 percent is expected by the company for 2016. There can be a negative impact on reported net revenue growth by 4 percentage points due to foreign exchange translation, the company said.
(Source:www.reuters.com)
Pepsi said that it would return about $7 billion to shareholders this year among which about $3 billion would be provided through buybacks even as the company increased its annual dividend to $3.01 per share from $2.81.
Citing a strong dollar and the exclusion of its Venezuelan business from its financial statements adjustments were made by the company in its forecast for 2016 earnings below the estimates of the analysts.
While accounting for 31.5 percent of total revenue, there was a 2 percent in the fourth quarter ended Dec. 26 in the revenue from PepsiCo's North American beverages business which the company started breaking out from the third quarter.
As consumers in North America, its biggest market, become more calorie-conscious and opt for products that are perceived to be healthier, PepsiCo has been introducing beverages with less sugar and more natural ingredients.
Helped by aggressive pricing and "solid" sales of Gatorade and Starbucks ready-to-drink coffee, which Pepsi distributes, PepsiCo's beverage sales in U.S. convenience stores rose 3.2 percent in the quarter, said Wells Fargo Securities in a pre-earnings note quoting from its research on the issue.
On similar lines, helped by sales of smaller cans and bottles, aggressive cost-cutting and lower commodity costs, the traditional rival Coca-Cola Co reported better-than-expected quarterly revenue and profit on Tuesday.
There was also a 2 percent rise in the revenue that the company’s snacks business, that includes Frito-lay and Doritos chips, managed to generate from North America.
The only two units to report higher revenue in the quarter were the Frito-Lay North America and the North America beverage business.
The attributable net income of PepsiCo rose from $1.31 billion, or 87 cents per share, a year earlier to touch to $1.72 billion or $1.17 per share in the period.
Excluding items, the company earned $1.06 per share. The net revenue fell 7 percent to $18.59 billion.
According to Thomson Reuters I/B/E/S, analysts on average had expected earnings of $1.06 per share on net revenue of $18.51 billion.
Short of the average analyst estimate of $4.76, PepsiCo forecast 2016 adjusted earnings of $4.66 per share.
Organic revenue growth of about 4 percent is expected by the company for 2016. There can be a negative impact on reported net revenue growth by 4 percentage points due to foreign exchange translation, the company said.
(Source:www.reuters.com)
