US: PepsiCo posts FY profits fall as 53rd week bites back

By | 14 February 2013

  • FY like-for-like net profits down by 4% to US$6.18bn
  • Net sales in 2012 slip by 1.5% to $65.5bn
  • Operating profits fall by 5%, hitting US$9.11bn
  • Global beverage volumes up by 1% organically for the year

 

PepsiCo released its FY numbers today

PepsiCo released its FY numbers today

PepsiCo has posted a fall in full-year profits and sales as a 53rd week in 2011 results left a tough comparison. 

Net profits were down by 4% to US$6.18bn in 2012, the New York-based company said today (14 February). Net sales slipped by 1.5% to $65.5bn over the same period while operating profits fell by 5% to $9.11bn.

PepsiCo said that, on an organic basis and discounting the effects of the extra week in 2011, net sales increased by 5%. The company did not give a value.

Fourth-quarter numbers showed more health. Net profits increased by 17% to $1.66bn in the three months to the end of December, but net sales decreased by 1% to $19.95bn. Operating profits slipped by 1.5% to $2.21bn. On an organic basis, sales increased by 5%.

“We're well positioned in attractive and highly complementary growth categories, our portfolio is diversified with products that have broad appeal and a global footprint that is balanced, and we have an enviable portfolio of iconic brands," PepsiCo chairman & CEO Indra Nooyi said.

In beverages, PepsiCo saw global volumes increase by 1%, however, its Americas beverage unit faced a difficult year, with net sales for 2012 down by 4.5% and operating profits falling by 8%. PepsiCo blamed the refranchising of PepsiCo Americas Beverages's Mexican bottling operation in 2011 and the extra week. On an organic basis, sales grew by 1.5%, PepsiCo said.

In the fourth quarter, non-carbonated beverages volumes grew low-single-digits led by mid-single-digit volume growth at Gatorade, while CSD volumes declined about 1%. 

Looking forward, PepsiCo said it intends to increase marketing spend at or above the rate of net sales growth and announced plans for a share repurchase programme to buy back up to $10bn of PepsiCo common stock between 1 July and 30 June 2016.

PepsiCo's share price dipped yesterday ahead of today's results.

To read the company's official statement, click here.

Expert analysis

PepsiCo, Inc. - SWOT, Strategy and Corporate Finance Report

PepsiCo, Inc. - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and corporate actions, providing a 360° view of the company.

Sectors: Company results, Soft drinks, Water

Companies: PepsiCo

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