“Moving forward, we will continue to focus on driving growth and winning in the marketplace,” said CEO Ramon Laguarta.
PepsiCo (PEP) – Get Free Report posted modestly better-than-expected fourth quarter earnings Thursday, while boosting its annual dividend, but sales suggested that consumes are starting to feel the impact of relentless price hikes.
PepsiCo said core earnings for the three months ending in December were pegged at $1.67 per share, up 9.1% from the same period last year and 2 cents ahead of the Street consensus forecast.
Overall group revenues, PepsiCo said, rose 10.9% to $27.99 billion, firmly ahead of analysts forecasts of a $26.841 billion tally. Organic sales volumes, however, were down 2% following average price increases of around 16% over the whole of the three month period.
Looking into the current financial year, PepsiCo said it sees core earnings of around $7.20 per share, around 8 cents shy of the Refinitiv forecast, with organic sales growth of around 6%.
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“We are pleased with our results for the fourth quarter and the full year as our business remained resilient and delivered another strong year of growth,” said CEO Ramon Laguarta. ” Moving forward, we will continue to focus on driving growth and winning in the marketplace while developing advantaged capabilities to fortify our businesses for the long-term.”
“We also announced a 10% increase in our annualized dividend, starting with our June 2023 payment which represents our 51st consecutive annual increase, and plan to repurchase approximately $1 billion worth of shares,” he added.
PepsiCo shares were marked 1.66% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $174.00 each.
Last fall, PepsiCo forecast organic revenue growth of around 12% for the full year, topping its previous estimate of 10%, while boosting its outlook for core earnings to $6.67 per share.
The Wall Street Journal reported late last year, however, that PepsiCo planned to layoff hundreds of workers, largely around corporate offices in Purchase, New York, Plano, Texas and Chicago, as part of an effort to “simplify the organization so we can operate more efficiently”.
