PepsiCo Q4 2022 Earnings Report
Key Takeaways
PepsiCo's Q4 2022 results showed resilience and strong growth, with a focus on driving growth, winning in the marketplace, and developing advantaged capabilities. The company expects to deliver 6% organic revenue growth and 8% core constant currency earnings per share growth in 2023 and announced a 10% increase in its annualized dividend.
PepsiCo's business remained resilient and delivered another strong year of growth.
Investments in people, brands, portfolio, value chain, and go-to-market systems are working.
The company will continue to focus on driving growth and winning in the marketplace.
Pep+ will be embedded at the center of the business in how they innovate, operate, run teams, and build brands.
PepsiCo
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PepsiCo Revenue by Segment
Forward Guidance
For 2023, the company expects a 6 percent increase in organic revenue and an 8 percent increase in core constant currency EPS. They also anticipate a core annual effective tax rate of 20 percent and total cash returns to shareholders of approximately $7.7 billion.
Positive Outlook
- Expects a 6 percent increase in organic revenue.
- Expects an 8 percent increase in core constant currency EPS.
- Anticipates a core annual effective tax rate of 20 percent.
- Plans total cash returns to shareholders of approximately $7.7 billion.
- Announced a 10 percent increase in its annualized dividend to $5.06 per share.
Challenges Ahead
- Expects an approximate 2-percentage-point foreign exchange translation headwind to impact reported net revenue and core EPS growth.
- Unable to reconcile full year projected 2023 organic revenue growth to full year projected 2023 reported net revenue growth because they are unable to predict the 2023 impact of foreign exchange.
- Unable to predict the occurrence or impact of any acquisitions, divestitures or other structural changes.
- Not able to reconcile full year projected 2023 core effective tax rate to full year projected 2023 reported effective tax rate.
- Not able to reconcile full year projected 2023 core constant currency EPS growth to full year projected 2023 reported EPS growth because they are unable to predict the 2023 impact of foreign exchange or the mark-to-market net impact on commodity derivatives.
Revenue & Expenses
Visualization of income flow from segment revenue to net income