PepsiCo has reported a 4.8% rise in net revenue in its 2020 full-year results, following a strong fourth quarter which saw sales up 8.8%.
For the year ending 26 December 2020, the company has posted net revenues of $70.37 billion.
PepsiCo’s operating profit for 2020 came in at $10.08 billion, a 2% decrease compared to last year’s $10.29 billion figure.
The company’s Asia Pacific, Australia, New Zealand and China unit saw its operating profit increase 24%, accounted for in part by 18% growth in net revenue.
While PepsiCo’s Africa, Middle East and South Asia unit saw the largest increase in net revenue (25%), its operating profit decreased 11%, primarily reflecting certain operating cost increases.
Operating profit reported by the Quaker Foods North America unit grew 23%, with net revenue up 10%.
Meanwhile, the company’s Frito-Lay North America unit saw its operating profit increase 2%, primarily reflecting growth in net revenue and productivity savings.
In 2020, PepsiCo benefited from at-home consumption of its snacks – which include Cheetos and Doritos – and Frito-Lay reported growth in net revenue of 7%.
Meanwhile, the company’s other largest division, PepsiCo Beverages North America, saw operating profit decrease 11%, accounted for in part by an organic volume decrease of 1.5%.
The unit fared badly in Q2 when it saw its sales drop by 7% and its operating profit fall by 42% but recovered later in the year, and in Q4 it saw 9% growth in net revenue.
“We ended the year on a strong note with our global beverage business having accelerated while our global snacks and food business remained resilient in the fourth quarter,” said PepsiCo chairman and CEO, Ramon Laguarta.
“Our results were indicative of the strength and resilience of our highly dedicated employees, diversified portfolio, agile supply chain and go-to-market systems and strong marketplace execution even in the face of difficult Covid-19 challenges.”
© FoodBev Media Ltd 2020
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