PepsiCo, Inc.
The company reported fourth-quarter FY23 sales of $27.85 billion, missing the analyst consensus estimate of $28.40 billion. Sales declined 0.5% on a year-over-year basis.
Operating profits at Quaker Foods North America and PepsiCo Beverages North America fell 79% and 27%, respectively, weighing on quarterly performance.
The company reported adjusted EPS of $1.78 in the fourth quarter, beating the street view of $1.72.
"Moving forward, we will further sharpen our focus on providing consumers great-tasting products that offer convenience and compelling value," said Chairman and CEO Ramon Laguarta.
Gross profit increased 1.2% year over year to $14.75 billion, while operating profit almost doubled on year to $1.68 billion.
"We will also aggressively manage our costs to accelerate productivity, and invest more in our brands, innovation, channel expansion and pep+ transformation," Laguarta added.
As of December 30, 2023, the company had cash and equivalents worth $9.76 billion. The company's long-term debt obligations stands at $37.595 billion.
Dividend Increase: The company announced a 7% increase in its annualized dividend to $5.42 per share from $5.06 per share, payable in June 2024.
Outlook: For 2024, the company expects at least a 4% increase in organic revenue, with at least an 8% increase in core constant currency EPS.
In addition, the company expects a core annual effective tax rate of 20%; and total cash returns to shareholders of approximately $8.2 billion, comprised of dividends of $7.2 billion and share repurchases of $1.0 billion.
Price Action: PEP shares are trading lower by 1.45% to $171.33 premarket on the last check Friday.
