PEP PepsiCo Inc

By Matt Grossman

PepsiCo Inc. Thursday posted a rise in fourth-quarter profit as stronger sales across the company, as well as cost savings in some divisions, contributed to adjusted earnings that were in line with analysts' expectations.

The Purchase, N.Y.-based food and beverage company posted earnings of $1.33 a share, up from $1.26 a share a year earlier. Net income attributable to the company rose to $1.85 billion, from $1.77 billion a year earlier.

On an adjusted basis, the company's profit was $1.47 a share. Analysts surveyed by FactSet were forecasting adjusted earnings of $1.46 a share.

Revenue was $22.46 billion, an improvement from $20.64 billion a year earlier. Analysts were forecasting revenue of $20.8 billion.

Sales from the company's Frito-Lay North America division grew by 5% on an organic basis, while Quaker Foods North America sales were up 8%. North American beverage sales climbed 5.5% organically.

Organic sales also grew by single-digit percentages in the four international regions for which PepsiCo reports results: Latin America; Europe; Africa, the Middle East and South Asia; and Asia Pacific, Australia, New Zealand and China.

Quaker Foods' operating profit jumped 17% as the company notched more revenue, better productivity savings and less ad spending. Frito-Lay's profit decreased, in part because of a negative 2% effect from charges taken because of the pandemic.

Operating profits from North American beverages climbed 19%, as sales growth, higher productivity, less ad spending and lower commodity costs helped the division's bottom line.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

February 11, 2021 06:41 ET (11:41 GMT)

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