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

There are currently no comments on this article

Be the first to comment on this article

Related research

PepsiCo Inc in Soft Drinks (World)

PepsiCo has not made any major acquisitions for its soft drinks in the past 12 months and it saw slow recovery in US beverages in 2012. The company aspires to lead the future health and wellness trend and needs to develop new products to capture cons...

PepsiCo Inc in Health and Wellness (World)

While PepsiCo has lost ground to Coca-Cola in some HW soft drinks categories, including RTD tea, bottled water and carbonates, PepsiCo is in a much stronger position in HW packaged foods. The company’s Quaker brand, its recent acquisition in Russian ...

PepsiCo China Ltd in Soft Drinks (China)

PepsiCo China Ltd is seeking sustainable growth by enhancing brand awareness around the world and bringing innovative products to the marketplace....

Related articles

Comment - Soft Drinks & Water - PepsiCo to enter Premi'Om' Water Market?

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 accelerate its diversification away from its struggling carbonates business.

JAPAN: Suntory Beverage & Food posts H1 profits jump

Suntory Holding's soft drinks and food unit has doubled first-half profits in its first financial statement since it started trading on the Tokyo stock exchange.

just On Call - Cott Corp basks in UK weather boost

Cott Corp's CEO has said last month's improved UK weather gave its soft drinks portfolio in the country a 15% volumes boost.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page