• Group 2013 net profits climb by 9.1% to US$6.74bn
  • Sales in 12 months to end of December inch up by 1.4% to $66.42bn
  • Group operating profits rise by 7% to $9.71bn
  • Launches five-year, $5bn "productivity programme" between 2015 and 2019
PepsiCo released its full-year results for 2013 earlier today

PepsiCo released its full-year results for 2013 earlier today

PepsiCo has reported a rise in group net profits for 2013, as group sales came in flat for the year.

The soft drinks and snack group said earlier today (13 February) that net profits last year rose by 9.1% on 2012, coming in at US$6.74bn. Group sales were up, just, by 1.4% to $66.42bn, with operating profits increasing by 7%.

The full-year numbers were broadly in-line with PepsiCo's performance in the first half of 2013, when net profits increased by 18% (aided by a one-off $137m gain) on a 2% lift in six-month sales.

For the final three months of 2013, net profits increased by 4.9% to $1.74bn on the back of a 1% lift in sales, to $20.12bn. Operating profits in the quarter were strong, climbing by 8.4% year-on-year to $2.4bn.

The group's PepsiCo Americas Beverages unit saw the widely-reported CSD pressures play a part in the year: 2013 sales for the unit dipped by 2% on 2012, the same fall as in the fourth quarter for PAB.

For the full year, total beverages posted a 2% lift in volumes on a reported basis, rising by 1% in organic terms in 2013. In the fourth quarter, volumes for beverages increased by 1% in both reported and organic terms.

“PepsiCo achieved its financial goals for 2013, despite continued challenging and volatile macroeconomic conditions around the globe," said chairman & CEO Indra Nooyi.

The group used the results announcement to detail its plans for the North American beverage (NAB) business, following a review of its alternatives going forward. "The board of directors have concluded that PepsiCo will maximise shareholder value by retaining NAB in its current structure within the PepsiCo portfolio."

The decision follows the news last month that activist investor Nelson Peltz was calling time on his demand that PepsiCo split its drinks operations and then merge its snacks operations with Mondelez International.

Also, the company revealed plans for a five-year cost savings programme, to run from 2015 to 2019. PepsiCo is targetting savings of $1bn per year through the move, which will include the "closing of certain manufacturing facilities" and "implementing simplified organisation structures".

Looking forward, PepsiCo estimated that core earnings-per-share growth in 2014 should come in at 7% on last year's $4.37 core EPS. “Our financial targets for 2014 are consistent with our long-term goals," said Nooyi.

To read PepsiCo's official statement, click here.

PepsiCo's conference call is reported here.

To read an analysis of PepsiCo's FY results, click here.