Sep 04, 2021

PepsiCo Q3 2021 Earnings Report

PepsiCo reported strong net revenue growth, navigating a dynamic supply chain and cost environment.

Key Takeaways

PepsiCo's Q3 2021 results showed strong net revenue growth, with organic revenue increasing by 9%. The company is raising its full-year guidance, expecting organic revenue to increase approximately 8% and core constant currency earnings per share to increase at least 11%. PepsiCo is focused on becoming a Faster, Stronger, and Better company through strategic investments and its new pep+ initiative.

Delivered strong net revenue growth while navigating a dynamic and volatile supply chain and cost environment.

Full-year organic revenue is expected to increase approximately 8 percent.

Core constant currency earnings per share is expected to increase at least 11 percent.

Investments are being made to become a Faster, Stronger, and Better company.

Total Revenue
$20.2B
Previous year: $18.1B
+11.6%
EPS
$1.79
Previous year: $1.66
+7.8%
Organic Revenue Growth
9%
Previous year: 4%
+125.0%
Organic Volume Growth
4%
Effective Net Pricing Growth
5%
Gross Profit
$10.8B
Previous year: $9.94B
+9.1%
Cash and Equivalents
$6.51B
Previous year: $9.09B
-28.5%
Total Assets
$93.3B
Previous year: $92B
+1.3%

PepsiCo

PepsiCo

PepsiCo Revenue by Segment

Forward Guidance

The Company now expects to deliver approximately 8 percent organic revenue growth, at least 11 percent core constant currency EPS growth, and at least 12 percent core EPS growth.

Positive Outlook

  • Expects to deliver approximately 8 percent organic revenue growth.
  • Expects at least 11 percent core constant currency EPS growth.
  • Expects at least 12 percent core EPS growth.
  • A core annual effective tax rate of approximately 21 percent is expected.
  • Total cash returns to shareholders of approximately $5.9 billion is expected.

Challenges Ahead

  • Cannot predict the impact of foreign exchange translation.
  • Cannot predict commodity mark-to-market net impacts.
  • Completed share repurchase activity and do not expect to repurchase any additional shares for the balance of 2021.
  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income