Pepsi Tops Quarterly Sales Expectations
February 13 2020 - 7:36AM
Dow Jones News
By Dave Sebastian
PepsiCo Inc. posted higher sales for the fourth quarter, beating
analysts' expectations, as its namesake beverage and snacks drove
gains along with sales in international markets.
The food-and-beverage company said sales rose 5.7% to $20.64
billion for the quarter ended Dec. 28, 2019, from the prior year.
Analysts polled by FactSet were looking for $20.25 billion.
Shares rose 0.2% in premarket trading.
The company's organic revenue grew 4.3% for the latest period
and said it anticipates the metric, which strips out the effect of
currency swings and acquisitions, to grow 4% in 2020.
Revenue at its North American beverage division, the company's
biggest contributor, rose 4%. Pepsi has said it is putting out a
new beverage that combines cola and coffee called Pepsi Café in the
U.S. in April.
In its Frito-Lay North America division, which produces potato
chips and other snacks, sales rose 3%.
Latin America sales rose 5%, Europe sales rose 15% and sales in
the Asia-Pacific, Australia, New Zealand and China region rose 8%.
In Africa, the Middle East and South Asia, sales rose 3%.
Net income fell to $1.77 billion, or $1.26 a share, from $6.85
billion, or $4.83 a share, in the comparable quarter last year. The
company booked $4.93 billion in income-tax benefit in the same
period last year.
Adjusted earnings were $1.45 a share, ahead of the $1.44 a share
analysts were looking for. The company expects adjusted per-share
earnings to grow 7% in 2020.
Pepsi also said it has increased its annual dividend to $4.09 a
share from $3.82 a share, payable in June.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
February 13, 2020 07:21 ET (12:21 GMT)
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