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...
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