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PepsiCo’s sales rose 17% to $12.35 billion in the last quarter of 2007, although net earnings of $1.26 billion or $0.77 per share were 30% down on the same period of 2006, when the company’s profits were boosted by a tax benefit. Excluding this benefit and other one-time items, however, PepsiCo earned $0.80 per share in Q4 2007, compared with $0.74 in Q4 2006.
The company’s sales over the full 12 months of 2007 rose 12.3% to $39.5 billion, with reported earnings virtually flat at $5.66 billion or $3.41 per share. But again, the picture brightened after the exclusion of one-time items, with 2007 earnings of $3.38 per share, compared with $3 in 2006.
“Our strong top and bottom-line results in 2007 once again demonstrated the balance and strength of our global portfolio,” said Chairman and CEO Indra Nooyi. “All of our segments posted solid results for the year.”
PepsiCo’s North American beverage volume gained 1% in Q4 2007, with high single-digit growth in still drinks offsetting a low single-digit decline in carbonates. Volume sales of snacks by Frito-Lay North America rose 3%, while Quaker Foods North America grew 3%.
Volume sales of drinks by PepsiCo International rose 9% in the quarter, while international sales of snacks and other food products grew 8%.
PepsiCo expects overall volume of drinks and food products to grow 3-5% in 2008, with mid to high-single digit growth in revenue, and full-year EPS of “at least” $3.72.
