PepsiCo reported robust full-year results, as a strong performance in the European market and Latin America offset a decline in the company’s Quaker Foods North America unit.For the year ending 28 December 2019, PepsiCo reported net revenues of $67.16 billion, a 3.9% increase compared to last year’s $64.66 billion figure.
The company’s operating profit for the year increased 2% to $10.29 billion and increased 6% in the company’s Europe unit, thanks to increased revenues, productivity savings and the positive impact of the company’s $3.2 billion acquisition of SodaStream, finalised in 2018. In Latin America meanwhile, the division’s operating profit increased 9%, thanks largely to productivity savings.PepsiCo Beverages North America and Frito-Lay North America – PepsiCo’s two largest divisions – reported mixed results, as both divisions were affected by higher advertising and marketing costs.
Rising snack sales and productivity savings saw the Frito-Lay unit report operating profit of $5.25 billion – a 5% increase – while falling soda sales and higher commodity costs saw the beverage division’s operating profit fall 4% to $2.17 billion.Operating profit reported by the Quaker Foods North America unit decreased 15%, as operating cost increases, higher commodity costs and increased marketing expenses.
PepsiCo chairman and CEO Ramon Laguarta said: “We are pleased with our performance for 2019 as we met or exceeded each of the financial goals we outlined at the beginning of the year. Our revenue growth accelerated for the full year as we embarked on our strategy to win with purpose by becoming Faster, Stronger, and Better.“We increased brand support to become more locally relevant and consumer-centric, we strengthened our go-to-market execution to enhance our customer relationships, and we embraced a new set of initiatives to help build a more sustainable food system.