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Dec 30, 2023
PepsiCo Q4 2023 Earnings Report
PepsiCo's Q4 2023 results reflected a mix of challenges and strategic progress, with revenue impacted by foreign exchange but supported by organic growth initiatives.
Key Takeaways
PepsiCo reported Q4 2023 results with a slight decrease in net revenue but a 4.5% organic revenue growth. EPS increased significantly due to certain comparability items. The company is focusing on cost management and brand investment for 2024, expecting at least 4% organic revenue growth and at least 8% core constant currency EPS growth.
PepsiCo's net revenue decreased by 0.5% while organic revenue grew by 4.5%.
Reported EPS increased by 152% to $0.94, and core EPS was $1.78.
The company expects at least 4% organic revenue growth and at least 8% core constant currency EPS growth in 2024.
PepsiCo announced a 7% increase in its annualized dividend, marking the 52nd consecutive annual increase.
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
PepsiCo anticipates at least 4% organic revenue growth and at least 8% core constant currency EPS growth in 2024. The company also expects a core annual effective tax rate of 20% and plans to return approximately $8.2 billion to shareholders through dividends and share repurchases.
Positive Outlook
- At least 4 percent increase in organic revenue
- At least 8 percent increase in core constant currency EPS
- Core annual effective tax rate of 20 percent
- Total cash returns to shareholders of approximately $8.2 billion
- 7 percent increase in its annualized dividend
Challenges Ahead
- Approximate 1-percentage-point foreign exchange translation headwind to impact reported net revenue
- Approximate 1-percentage-point foreign exchange translation headwind to impact core EPS growth
- Changing marketplace conditions
- Category growth rates are normalizing as consumer behaviors largely revert to pre-pandemic norms
- Net revenue realization moderates as inflationary pressures are expected to abate
Revenue & Expenses
Visualization of income flow from segment revenue to net income