Pepsi soft drinks are on display in a store in San Francisco, California.
Justin Sullivan | Getty Images
PepsiCo on Thursday reported fourth-quarter revenue that is the best estimate, fueled by pandemic snacks and higher-selling liquor such as Gatorade Zero and Bubly sparkling water.
On the heels of the strong quarter, the owner of Frito-Lay said he expects the 2021 results to meet long-term financial targets.
The company’s shares fell less than 1% in market trading.
This is what the company reported compared to what Wall Street expected, based on a survey by analysts by Refinitiv:
- Earnings per share: $ 1.47, adjusted, compared to $ 1.46 expected
- Revenue: $ 22.46 billion versus $ 21.78 billion expected
The company reported fourth-quarter fiscal net income of $ 1.85 billion, or $ 1.33 per share, compared to $ 1.77 billion, or $ 1.26 per share, a year earlier.
Pepsi excluded, earning $ 1.47 per share, beating the $ 1.46 per share expected by analysts surveyed by Refinitiv.
Net sales rose 8.8% to $ 22.46 billion, higher than expectations of $ 21.78 billion. The company’s organic revenue, which removes the impact of foreign exchange, acquisitions and divestments, grew by 5.7%.
Frito-Lay North America grew its organic revenue by 5% during the quarter. Tostitos and Cheetos were among the brands that reached consumers in the grocery store when they were looking for home-made snacks.
Quaker Foods’ organic revenue rose 8%. Since many consumers still work from home, they have resorted to buying maple syrup and pancake mix for breakfast. On Tuesday, Pepsi renamed its brand Aunt Jemima to Pearl Milling Company after saying in June that the character was based on a racial stereotype.
Its North American liquor unit increased its organic sales by 5.5%. Pepsi typically receives less of its sales than a competitor Coca-Cola, and the segment’s organic revenue turned positive in the third quarter. Gatorade Zero, Bubly and its Starbucks coffee drinks helped boost sales.
In 2021, Pepsi expects the growth in organic income in the middle and single digits and the growth in single earnings per share, which will assume constant exchange rates in foreign currency. The company is also increasing its dividend by 5%, starting in June.
“By 2021, we plan for our organic revenue and continued growth in currency gains to be in line with our long-term goals,” CEO Ramon Laguarta said in a statement.
Read the complete report here.