PepsiCo reported yesterday that costs arising from the US$14bn merger of PepsiCo with Quaker Oats depressed profits by 4.4% in the fourth quarter. Pepsi#;s fourth quarter profits were 37 cents per share, or US$667m. Discounting the impact of merger costs, profits would have climbed 16% to 42 cents per share on a like-for-like basis.