Net profit of American PepsiCo Inc., one of the world’s largest producers of soft drinks, in the fourth quarter of the 2020 fiscal year ended December 26, grew by 4.5% to $ 1.845 billion, or $ 1.33 per share , up from $ 1.766 billion, or $ 1.26 per share, received in the comparable period a year earlier. Profit excluding one-off factors increased to $ 1.47 per share from $ 1.45
According to a press release, the company increased its revenue by 8.8% to $ 22.455 billion from $ 20.64 billion. Organic growth was 5.7%.
Financial indicators were stronger than forecasts. Analysts polled by FactSet expected on average $ 1.46 per share adjusted earnings on $ 21.8 billion in revenue.
In North America, revenue of Frito-Lay’s snack business increased 5.7% to $ 5.44 billion (versus a forecast of $ 5.48 billion), and the beverage division increased 8.6% to $ 6.79 billion (forecast – $ 6.6 billion), the Quaker Foods division – by 8.3%, to $ 836 million (forecast – $ 808.4 million).
The company’s revenues in Latin America decreased by 5.2% and amounted to $ 2.41 billion. Experts had expected $ 2.29 billion. In Europe, the figure increased by 3.8% and reached $ 4.04 billion, which was higher than analysts’ estimates of $ 3.93 billion
Starting in June, PepsiCo will pay a quarterly dividend of $ 4.3 per share, up from $ 4.09 previously.
Based on the results of the entire 2020 fiscal year, the company increased its revenue by 4.8% – to $ 70.372 billion, organic growth was 4.3%. Meanwhile, net income fell to $ 7.12 billion from $ 7.314 billion a year earlier, or to $ 5.12 from $ 5.2 per share.
PepsiCo predicts organic sales growth of around 5% in fiscal 2021.
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PepsiCo shares added 0.2% during electronic trading on Thursday. The company’s capitalization over the past three months has decreased by 4.3% and now stands at $ 192.9 billion. The Standard & Poor’s 500 stock index has grown by 9.4% over this period.