PepsiCo has revealed that its net revenue rose 1.2% to $63.5 billion in the year ending 2017, with the brand stating that it met or exceeded all of its targets for the financial year.
Operating income rose 7% for the full year to $10.5 billion, exceeding the $9.78 billion result recorded last year.
There were mixed fortunes for PepsiCo’s North American businesses, as its Frito-Lay snacks division posted a rise in operating income and overall revenue, while the company’s beverage arm saw a decline in both areas.
Frito-Lay’s overall revenue rose 2% to $15.8 billion and operating income rose 3.5% to 4.82 billion, while the brand’s beverage arm saw a 2% drop in revenue to $20.9 billion while operating income dropped 9% to $2.71 billion.
Results outside of North America were generally strong, as PepsiCo recorded a 73% rise in operating income in its Asia, Middle East & North Africa region, rising to $1.07 billion from $619 million, though overall revenue in this area dropped 5% to $6.03 billion.
PepsiCo’s results were helped by a strong performance from its Frito-Lay snacks division
In Europe/Sub-Saharan Africa, PepsiCo’s overall revenue rose 8% to $11.1 billion, and operating income in this region rose 22% to $1.35 billion.
Latin America also performed strongly, posting a 6% revenue rise to $7.21 billion and an operating income increase of 2% to $908 million.
Chairman and CEO Indra Nooyi said: “We are pleased with our performance for the fourth quarter and full year 2017. We met or exceeded most of the financial goals we set out at the beginning of the year.
“We delivered these results in the midst of a dynamic retail environment and rapidly shifting consumer landscape.
“The provisions of recently enacted tax legislation are expected to result in lower income taxes in 2018 for our operations in the United States, our largest market.
We expect the benefits of the TCJ Act will enable us to further strengthen our business by enhancing the skills of our front line associates to ready them for the future; adding new digital and e-commerce capabilities to become more competitive; accelerating capital investments to add manufacturing capacity and make our operations more efficient; and enhancing cash returns to our shareholders over time.
“As a reflection of our confidence in the growth prospects for our business, we expect to deliver 9% growth in core constant currency earnings per share in 2018 and we announced today a 15% increase in our annualized dividend per share beginning with the June 2018 payment, representing our 46th consecutive annual increase.”
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