Pepsi Tops Quarterly Sales Expectations

By Dave Sebastian 

PepsiCo Inc. posted higher sales for the fourth quarter, beating analysts' expectations, as its namesake beverage and snacks drove gains along with sales in international markets.

The food-and-beverage company said sales rose 5.7% to $20.64 billion for the quarter ended Dec. 28, 2019, from the prior year. Analysts polled by FactSet were looking for $20.25 billion.

Shares rose 0.2% in premarket trading.

The company's organic revenue grew 4.3% for the latest period and said it anticipates the metric, which strips out the effect of currency swings and acquisitions, to grow 4% in 2020.

Revenue at its North American beverage division, the company's biggest contributor, rose 4%. Pepsi has said it is putting out a new beverage that combines cola and coffee called Pepsi Café in the U.S. in April.

In its Frito-Lay North America division, which produces potato chips and other snacks, sales rose 3%.

Latin America sales rose 5%, Europe sales rose 15% and sales in the Asia-Pacific, Australia, New Zealand and China region rose 8%. In Africa, the Middle East and South Asia, sales rose 3%.

Net income fell to $1.77 billion, or $1.26 a share, from $6.85 billion, or $4.83 a share, in the comparable quarter last year. The company booked $4.93 billion in income-tax benefit in the same period last year.

Adjusted earnings were $1.45 a share, ahead of the $1.44 a share analysts were looking for. The company expects adjusted per-share earnings to grow 7% in 2020.

Pepsi also said it has increased its annual dividend to $4.09 a share from $3.82 a share, payable in June.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

February 13, 2020 07:21 ET (12:21 GMT)

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