PepsiCo’s revenue increases 5% in Q4
Beverage giant PepsiCo has reported a 5% increase in its revenue to $19.52bn for the quarter of 2016, from $18.59bn last year.
Net income attributable to the company declined 18% to $1.40bn from last year's $1.72bn.
Earnings per share declined 17% to $0.97 from $1.17 last year.
The company witnessed decline in profit for some products, while adjusted profits scored high. For 2017 fiscal, PepsiCo is expecting higher earnings.
For this year’s fiscal, PepsiCo is expecting core earnings at $5.09 per share, which is higher than last year’s $4.85. An organic revenue growth of at least 3% is expected for the period.
Furthermore, about $10bn in cash flow from operating activities and about $7bn in free cash flow are also expected.
According to the softdrink company, about 45% of its net revenue came from ‘guilt-free products’, beverages that have fewer than 70 calories per 12 ounces and snacks with lower salt content and saturated fat.
PepsiCo chairman and CEO Indra Nooyi said: "We concluded 2016 with another strong quarter of operating performance, capping off a successful year. We met or exceeded every financial goal we set for 2016, while delivering a good balance between revenue performance and productivity.
"Looking ahead to 2017, we expect solid financial performance despite anticipated continued macroeconomic challenges.
“Further, reflecting our commitment to providing attractive cash returns to shareholders, we are increasing our dividend per share for the 45th consecutive year, beginning with our June 2017 payment."
Image: PepsiCo declares fourth quarter results for 2016. Photo: Courtesy of PepsiCo, Inc.