Pepsi soft drinks are on display at a convenience store in San Francisco, California.
Justin Sullivan | Getty Images
PepsiCo on Thursday reported fourth-quarter revenue that exceeded estimates, fueled by pandemic snacks and higher beverage sales such as Gatorade Zero and Bubly sparkling water.
After the strong quarter, the owner of Frito-Lay said he expects his 2021 results to meet long-term financial goals.
The company’s shares fell less than 1% in premarket trading.
This is what the company reported compared to what Wall Street expected, according to a survey by Refinitiv analysts:
- Earnings per share: $ 1.47, adjusted, versus $ 1.46 expected
- Revenue: $ 22.46 billion, up from projected $ 21.788 billion
The company reported fourth-quarter net tax revenue of $ 1.85 million, or $ 1.33 per share, compared to $ 1.777 million or $ 1.26 per share, a year earlier.
Excluding the articles, Pepsi earned $ 1.47 per share, surpassing the $ 1.46 per share expected by analysts surveyed by Refinitiv.
Net sales rose 8.8% to $ 22.46 million, exceeding expectations of $ 21.78 million. The company’s organic revenue, which eliminates the impact of foreign currency, acquisitions and divestments, grew 5.7%.
Frito-Lay North America saw its organic revenue grow 5% during the quarter. Tostitos and Cheetos were among the brands consumers were looking for in the grocery store when looking for snacks at home.
Quaker Foods ’organic revenue increased 8%. Since many consumers still work from home, they have been busy buying maple syrup and pancake mix for breakfast. On Tuesday, Pepsi changed the name of its Aunt Jemima brand to Pearl Milling Company after saying in June that the character was based on a racial stereotype.
Its US beverage unit saw its organic sales increase by 5.5%. Pepsi typically receives less of its sometimes off-home sales than rival Coca-Cola, so the segment’s organic revenue turned positive in the third quarter. Gatorade Zero, Bubly and their Starbucks coffee drinks helped drive sales.
In 2021, Pepsi expects average one-digit growth in organic revenue and high one-digit growth in core earnings per share, which assume constant foreign exchange rates. The company also increases its dividend by 5%, starting in June.
“By 2021, we are planning for our organic revenues and our steady growth of EPS in constant currency to be consistent with our long-term goals,” CEO Ramon Laguarta said in a statement.
Read the full report here.