Click the image to sign up Beijing time, February 13 evening news, according to MarketWatch, PepsiCo reported its fourth-quarter earnings on Tuesday. The report showed that PepsiCo's carbonated beverage sales declined in the fourth quarter, but the beverage giant's cost-cutting measures helped protect its profits. The beverage and snack giant's North American beverage division reported fourth-quarter revenue of $5.9 billion, compared with $6.3 billion in the same period last year, but it exceeded analysts' expectations surveyed by Thomson Reuters. PepsiCo's revenue from its Frito-Lay snack business also declined, with the division generating $4.8 billion in the fourth quarter, compared with $4.9 billion in the same period last year. On an organic basis, PepsiCo's Frito-Lay business revenue increased 5% year-over-year, but beverage revenue declined 3%. PepsiCo's CEO Indra Nooyi said in a prepared speech that the company's fourth-quarter performance was "in the midst of a changing retail environment, while the consumer market is also rapidly shifting." Since 2015, PepsiCo has been cutting about $1 billion in costs annually through closing factory facilities, investing in automation, and layoffs. The company said on Tuesday it will cut less than 1% of its U.S. corporate employees, approximately 1,100 people, as part of its multi-year cost-reduction plan. Overall, PepsiCo's fourth-quarter revenue was flat compared with a year ago, reaching $19.5 billion, compared with analysts' expectations of $19.4 billion. PepsiCo reported a fourth-quarter loss of $710 million, which includes the impact related to the new U.S. tax reform bill. Excluding certain one-time items, such as tax reserve adjustments, PepsiCo's fourth-quarter earnings per share were $1.31, compared with $1.20 per share in the same period last year. Analysts had expected adjusted earnings per share of $1.30 for the fourth quarter. PepsiCo's adjusted full-year earnings per share met the company's previous guidance of $5.23. Last year, PepsiCo's stock rose 5.5%, and in early Tuesday trading it was up 0.29% at $112.25 per share. Source: Tencent Securities
Capital, Earnings & M&A
PepsiCo Beats Q4 Revenue Expectations, Yet to Cut Over 1,000 Jobs
PepsiCo reported fourth-quarter results on Tuesday, showing a decline in carbonated beverage sales but cost-cutting measures helped protect profits. The company's North American beverage revenue fell to $5.9 billion from $6.3 billion a year earlier, yet beat analyst expectations. PepsiCo also announced it will cut about 1,100 U.S. corporate jobs as part of its ongoing cost-reduction plan.