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PepsiCo has reported net revenue growth of 5.9% in its FY results, reflecting investments made in strengthening the business. However, the beverage giant’s net revenue fell 0.5% to $27.85 billion, with organic revenue growth of 4.5%, down from 10.6% in the year-ago period. This is the first drop in 14 quarters. PepsiCo executives stated that high borrowing costs and lower personal savings have squeezed consumers’ budgets. The company said demand has started to decrease mainly in the US, where consumers are resisting higher prices for sodas and snacks after two years of PepsiCo passing on higher production costs to customers to shield its margins. In January, Europe's largest food retailer Carrefour stated that it would not stock PepsiCo's products "due to unacceptable price increases". The owner of brands such as Doritos, SodaStream and Lay’s reported $1.3 billion net income for the fourth quarter, up from $518 million in the same period the prior year. PepsiCo was negatively hit by impairment charges related to some of its brands, including SodaStream and Goodwill. PepsiCo’s Latin America unit posted the only increase in Q4 net revenue of 18%, while the Quaker Foods North America unit recorded the steepest decline of 16%. PepsiCo said that the quarter’s net revenue decline was impacted by product returns related to the voluntary recall of certain bars and cereals in its Quaker Foods North America division, the cessation of sales of products as a result of the Quaker recall, along with weaker growth for the overall category. In the quarter, PepsiCo Beverages North America’s profit fell by 27%, a sharp difference from its 122% growth in the same period last year, meanwhile net revenue for its Europe unit fell by 1%. PepsiCo’s Latin America division saw an 18% increase in Q4 net revenue. The Africa, Middle East and South Asia unit’s net revenue fell by 4%, and the company’s Asia Pacific, Australia and New Zealand and China Region segment saw revenue decline of 2%. PepsiCo CEO, Ramon Laguarta, said he was pleased with the 2023 results as the company “successfully navigated another year of elevated levels of inflation, macroeconomic volatility, geopolitical tensions and international conflicts.” He stated that he is confident that the businesses will perform well in 2024: “Category growth rates are normalising as consumer behaviours largely revert to pre-pandemic norms and net revenue realisation moderates as inflationary pressures are expected to abate." Looking to the future, Laguarta said that PepsiCo will “aggressively manage” its costs to accelerate productivity, and invest more in its brands, innovation, channel expansion and its PepsiCo Positive ESG transformation strategy. For 2024, the beverage giant now anticipates organic revenue will rise at least 4% and core constant currency earnings per share will climb at least 8%. The company previously forecast an increase in organic revenue on the high end of 4% to 6% and core constant currency earnings per share growth in the high single digits.