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Mar 20, 2021
PepsiCo Q1 2021 Earnings Report
PepsiCo's Q1 2021 results reflected resilience amidst challenges, with revenue growth driven by diversified portfolio and strong marketplace execution.
Key Takeaways
PepsiCo reported a 6.8% increase in net revenue and a 29% increase in EPS for the first quarter of 2021. The company successfully overcame challenges related to year-over-year comparisons and uneven recoveries across international markets. Following the first quarter results, the company has greater confidence in delivering on its financial guidance for the full year.
Net revenue grew by 6.8%, with a 0.5% negative impact from foreign exchange.
Organic revenue grew by 2.4%.
Reported EPS was $1.24, a 29% increase.
Core EPS was $1.21, with a 14% increase in core constant currency EPS.
PepsiCo
PepsiCo
PepsiCo Revenue by Segment
Revenue by Segment
Frito-Lay NA Revenue
CapyFin.comPBNA Revenue
CapyFin.comEurope, Middle East & Africa Revenue
CapyFin.comLatin America Foods Revenue
CapyFin.comAsia Pacific Foods Revenue
CapyFin.com Forward Guidance
For 2021, the company continues to expect a mid-single-digit increase in organic revenue and a high-single-digit increase in core constant currency EPS.
Positive Outlook
- A mid-single-digit increase in organic revenue.
- A high-single-digit increase in core constant currency EPS.
- A core annual effective tax rate of approximately 21 percent.
- Total cash returns to shareholders of approximately $5.9 billion, comprised of dividends of approximately $5.8 billion and share repurchases of $106 million.
- A 1-percentage-point foreign exchange translation tailwind to benefit reported net revenue and core EPS growth based on current market consensus rates.
Challenges Ahead
- Cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and commodity mark-to-market net impacts.
- Unable to reconcile full year projected 2021 organic revenue growth to our full year projected 2021 reported net revenue growth because we are unable to predict the 2021 impact of foreign exchange.
- Unable to predict the occurrence or impact of any acquisitions, divestitures or other structural changes.
- Not able to reconcile our full year projected 2021 core effective tax rate to our full year projected 2021 reported effective tax rate.
- Not able to reconcile our full year projected 2021 core constant currency EPS growth to our full year projected 2021 reported EPS because we are unable to predict the 2021 impact of foreign exchange or the mark-to-market net impact on commodity derivatives due to the unpredictability of future changes in foreign exchange rates and commodity prices.
Revenue & Expenses
Visualization of income flow from segment revenue to net income