US: PepsiCo posts FY profits fall as 53rd week bites back
- 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 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.
This month, Ray Rowlands of Drinksinfo Ltd follows up on the reports that PepsiCo is planning to launch a premium brand into the burgeoning US bottled water market next year, in an attempt to accelera...
PepsiCo India is one of the largest players in packaged foods and soft drinks in India. The holding became the new title sponsor of the Indian Premier League (IPL) for five seasons starting from 2013....
In 2012, Cía de Bebidas Pepsico continued to adapt to the gloomy economic climate by holding back prices, offering its core carbonates brands at lower retail prices than its main competitor Cía Servic...
Ranked sixth in hot drinks in 2012, the company has a strong presence in other hot drinks, in particular in chocolate-based flavoured powder drinks under the Toddy brand. Competing for the same target...
PepsiCo China Ltd is seeking sustainable growth by enhancing brand awareness around the world and bringing innovative products to the marketplace....
- Why Chinese beverages won't conquer the world
- Is “Craft” the Next Big Thing for Soft Drinks?
- Gin: Plymouth's from Plymouth, London's from...?
- Petropolis Finally Moving into SABMiller's View?
- Coca-Cola pressure builds as bid rumours swirl
- Diageo confirms Australia RTD abv drops
- Pernod launches online Ballantine's "experiment"
- Global vodka sales slip in 2013 - research
- SABMiller returns to Brazil with Petropolis tie-up
- Pernod takes Absolut Warhol push to Travel Retail
- Early Signals: future scenarios that will drive consumption and product innovation over the next five years
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- Global vodka insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- The IWSR Global Trends Report 2014