Pepsi sodas are displayed at a convenience store in San Francisco, California.
Justin Sullivan | Getty Images
PepsiCo on Thursday released fourth-quarter earnings that exceeded estimates, fueled by pandemic snacks and higher sales of drinks like Gatorade Zero and sparkling water.
In the wake of the strong quarter, the owner of Frito-Lay said he expects the 2021 results to meet long-term financial goals.
The company’s shares fell less than 1% in the pre-market.
Here’s what the company reported compared to what Wall Street expected, based on a survey of Refinitiv analysts:
- Earnings per share: $ 1.47, adjusted, against $ 1.46 expected
- Revenue: $ 22.46 billion versus expected $ 21.78 billion
The company posted fourth quarter fiscal earnings of $ 1.85 billion, or $ 1.33 per share, compared to $ 1.77 billion, or $ 1.26 per share, a year earlier.
Excluding the items, Pepsi earned $ 1.47 per share, exceeding the $ 1.46 per share expected by analysts polled by Refinitiv.
Net sales increased 8.8% to $ 22.46 billion, exceeding expectations of $ 21.78 billion. The company’s organic revenue, which excludes the impact of foreign currency, acquisitions and divestments, grew 5.7%.
Frito-Lay North America saw its organic revenue grow 5% during the quarter. Tostitos and Cheetos were among the brands that consumers looked for in the supermarket when looking for snacks at home.
Quaker Foods’ organic revenue increased 8%. As many consumers still work from home, they started to buy maple syrup and pancake mix for breakfast. On Tuesday, Pepsi renamed its brand Aunt Jemima to Pearl Milling Company after saying in June that the character was based on a racial stereotype.
Its beverage unit in North America saw its organic sales grow 5.5%. Pepsi typically receives less of its sales on away occasions than rival Coca-Cola, so the segment’s organic revenue turned positive in the third quarter. Gatorade Zero, Bubly and their Starbucks-branded coffees helped boost sales.
In 2021, Pepsi is forecasting half-digit growth in organic revenue and high single-digit growth in basic earnings per share, which assumes constant foreign currency exchange rates. The company is also increasing its dividends by 5%, starting in June.
“For 2021, we are planning that our organic revenue and EPS growth in constant central currency are consistent with our long-term goals,” said CEO Ramon Laguarta in a statement.
Read the full report here.