Pepsi soft drinks are displayed at a store in San Francisco, California.
Justin Sullivan | Getty Images
PepsiCo on Thursday reported fourth-quarter earnings that exceeded estimates, fueled by pandemic snacks and higher sales of beverages such as Gatorade Zero and Bubly sparkling water.
Following the strong quarter, owner Frito-Lay said he expects his 2021 results to reach long-term financial goals.
The company’s shares fell below 1% in premarket trading.
Here is what the company reported compared to what Wall Street expected, based on a survey conducted by analysts by Refinitiv:
- Earnings per share: 1.47 USD, adjusted compared to 1.46 USD expected
- Revenue: $ 22.46 billion compared to $ 21.78 billion expected
The company reported fourth-quarter tax revenue of $ 1.85 billion, or $ 1.33 per share, up from $ 1.77 billion or $ 1.26 per share a year earlier.
Except for the articles, Pepsi earned $ 1.47 per share, exceeding $ 1.46 per share expected by analysts surveyed by Refinitiv.
Net sales increased 8.8% to $ 22.46 billion, exceeding expectations of $ 21.78 billion. The company’s organic revenues, which eliminate the impact of currencies, acquisitions and divestments, increased by 5.7%.
Frito-Lay North America saw a 5% increase in organic revenue in that quarter. Tostitos and Cheetos were among the brands that consumers reached in grocery stores when looking for snacks at home.
Quaker Foods’ organic revenues increased by 8%. As many consumers still work from home, they turned to buying maple syrup and the pancake mixture for breakfast. On Tuesday, Pepsi renamed its brand Aunt Jemima to the Pearl Milling Company after saying in June that the character was based on a racial stereotype.
Its beverage unit in North America saw its organic sales increase by 5.5%. Pepsi typically receives fewer off-home sales than rival Coca-Cola, so the segment’s organic revenue became positive in the third quarter. Gatorade Zero, Bubly and its Starbucks coffee drinks helped increase sales.
In 2021, Pepsi anticipates an average one-figure increase in organic revenue and a single-digit increase in core earnings per share, which involves constant foreign exchange rates. The company also raises its dividend by 5%, starting in June.
“For 2021, we plan for our organic revenues and the steady EPS growth of our currency to be in line with our long-term goals,” CEO Ramon Laguarta said in a statement.
Read the full report here.