PepsiCo’s earnings get a lift as fees fade, despite revenue falling in the fourth quarter


PepsiCo’s earnings rose in the fourth quarter thanks in part to lower fees, although revenue fell slightly.

The food and beverage company also said Friday that it is increasing its annual dividend by 7% and plans to buy back about $1 billion of its stock.

For the three months ended Dec. 30, PepsiCo had a profit of $1.3 billion, or 94 cents per share. That compares to $518 million, or 37 cents per share, the previous year.

Excluding impairment charges and other items, earnings were $1.78 per share. The performance exceeded the $1.72 per share expected by analysts surveyed by Zacks Investment Research.

Revenue fell to $27.86 billion from $28 billion, below Wall Street estimates of $28.24 billion.

PepsiCo has grappled with rising prices and how to pass on those costs. lhave And raising prices by double For several quarters.

International supermarket chain Carrefour Last month, it said it would stop selling PepsiCo products in its stores in France, Belgium, Spain and Italy due to… Increases in prices of popular goods Like Lay’s potato chips, Quaker Oats, Lipton Iced Tea and its namesake soda.

PepsiCo said at the time that it would continue to do business in good faith with Carrefour to try to ensure its products remain available.

Its profits have risen, although rising prices have led to a decline in sales as people turn to cheaper brands. PepsiCo has reduced package sizes for some products in that environment.

PepsiCo, based in New York, said price increases should decline and be largely in line with inflation, which has fallen significantly.

PepsiCo has indicated High costs of grains and cooking oil It also raised prices. The costs of those food commodities Oil prices rose in the wake of Russia’s invasion of Ukraine, but have since fallen on global markets Record levels in 2022.

The company’s shares fell more than 2% before the market opened.

Leave A Reply

Your email address will not be published.