PepsiCo posts 8.7% net revenue growth for 2022 after “another strong year of growth”

PepsiCo has reported net revenue growth of 8.7% in its full-year results, reflecting pricing actions as the “business remained resilient”.

The owner of brands such as Doritos, SodaStream and Lay’s posted a rise in net sales of 10.9% to $28 billion in Q4, with organic revenue growth of 14.6%.

The food and beverage giant’s net income for the fourth quarter came in at $518 million, down from $1.32 billion in the same period the prior year. PepsiCo was negatively hit by impairment charges related to some of its brands, including Pioneer Foods, SodaStream and Be & Cheery.

Frito-Lay North America recorded the steepest increase in Q4 net revenue of 25%, while the Quaker Foods North America unit reported a net revenue increase of 16%.

Demand for PepsiCo products decreased during the quarter, as volume fell 7% at Quaker Foods North America and 2% at the company’s North American beverage division. PepsiCo Beverages North America’s operating profit increased 122%, reflecting the gain of $3 billion associated with the sale of Tropicana, Naked and other juice brands.

PepsiCo’s Latin America division saw a 21% increase in Q4 net revenue. The Africa, Middle East and South Asia unit’s net revenue grew by 4%, and the company’s Asia Pacific, Australia and New Zealand and China Region segment saw revenue increase by 2%.

Europe saw a 2% decline in net revenue and a 420% decrease in operating profit, reflecting impairment charges related to the SodaStream brand, as well as higher commodity costs, primarily packaging materials, cooking oil and potatoes, and certain operating cost increases.

PepsiCo CEO, Ramon Laguarta, said: “Our results demonstrate that the investments we have made in our people, brands, portfolio, value chain and go-to-market systems are working. Moving forward, we will continue to focus on driving growth and winning in the marketplace while developing advantaged capabilities to fortify our businesses for the long term.”

He continued: “For 2023, we expect to deliver 6% organic revenue growth and 8% core constant currency earnings per share growth”.