Snack and beverage giant PepsiCo Inc. (PEP) on Thursday reported an increase in net income for the fourth quarter, reflecting revenue growth on continued strength in its global snacks and food business and acceleration in its global beverage business.
Both core earnings per share and net revenues for the quarter topped analysts’ estimates. The company also initiated its core earnings and organic revenue growth guidance for the full-year 2021.
“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,” said Ramon Laguarta, Chairman and CEO.
For the fourth quarter, net income attributable to the company grew to $1.85 billion or $1.33 per share from $1.77 billion or $1.26 per share in the year-ago quarter.
Core earnings for the quarter were $1.47 per share, compared to $1.45 per share in the year-ago quarter. On average, 19 analysts polled by Thomson Reuters expected the company to earn $1.46 per share for the quarter.
Net revenue for the quarter grew 8.8 percent to $22.46 billion from $20.64 billion last year. Analysts expected revenues of $21.80 billion. Organic revenue growth for the quarter was 5.7 percent.
In the quarter, Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Europe, Africa, Middle East and South Asia as well as Asia Pacific, Australia and New Zealand and China reported higher revenues. Revenues in Latin America declined.
Looking ahead to fiscal 2021, PepsiCo now projects core earnings per share growth in the high-single digit percentage on organic revenue growth in the mid-single digit percentage, consistent with its long-term objectives. The Street expects earnings of $6.06 per share for the year.
The Company also announced a 5 percent increase in its annualized dividend to $4.30 per share from $4.09 per share, effective with the dividend expected to be paid in June 2021.
Source: Read Full Article