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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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