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Dec 28, 2024
PepsiCo Q4 2024 Earnings Report
PepsiCo reported fourth quarter and full-year 2024 results and provided 2025 financial outlook.
Key Takeaways
PepsiCo's businesses remained resilient in 2024, despite category performance challenges in North America and business disruptions in certain international markets. Enhanced productivity initiatives enabled investments, gross and operating margin improvements, and EPS growth. The company anticipates delivering low-single-digit organic revenue growth and mid-single-digit core constant currency EPS growth in 2025 and announced a 5% dividend increase.
Businesses remained resilient in 2024 despite challenges in North America and international market disruptions.
Enhanced productivity initiatives drove gross margin, operating margin, and EPS improvements.
Expects low-single-digit organic revenue growth and mid-single-digit core constant currency EPS growth in 2025.
Announced a 5% increase in annualized dividend per share, representing the 53rd 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
For 2025, the company expects a low-single-digit increase in organic revenue and a mid-single-digit increase in core constant currency EPS. The company expects a core annual effective tax rate of approximately 20 percent and total cash returns to shareholders of approximately $8.6 billion, comprised of dividends of $7.6 billion and share repurchases of $1.0 billion. The company also expects a foreign exchange translation headwind of approximately 3-percentage-points to negatively impact reported net revenue and core EPS growth.
Positive Outlook
- Expects a low-single-digit increase in organic revenue.
- Expects a mid-single-digit increase in core constant currency EPS.
- Anticipates a core annual effective tax rate of approximately 20 percent.
- Plans total cash returns to shareholders of approximately $8.6 billion.
- Dividends of $7.6 billion and share repurchases of $1.0 billion.
Challenges Ahead
- Foreign exchange translation headwind of approximately 3-percentage-points to negatively impact reported net revenue.
- Foreign exchange translation headwind of approximately 3-percentage-points to negatively impact core EPS growth.
- Cannot predict the 2025 impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates.
- Unable to predict the occurrence or impact of any acquisitions, divestitures or other structural changes.
- Not able to reconcile full year projected 2025 core effective tax rate to full year projected 2025 reported effective tax rate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income