PepsiCo posts stronger than expected revenue, raises dividend
Tim Boyle/Getty Images News

PepsiCo (NASDAQ:PEP) shares edged higher in premarket trading as Q4 sales came in significantly stronger than anticipated.

For the fourth quarter, $1.67 in earnings per share edged out estimates by $0.02 while $28B in revenue exceeded expectations by $1.18B. The company noted particular strength in its Frito-Lay business due to pricing actions. Revenue in the snack-focused segment rose to $7.7B against a $7.19B consensus while core operating profit from the division rose 16% year over year.

âOur results demonstrate that the investments we have made in our people, brands, portfolio, value chain, and go-to-market systems are working,â CEO Ramon Laguarta said. âMoving 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.â

For 2023, Laguarta said the company expects 6% organic revenue growth, above the 5.08% analyst consensus. He also announced a 10% increase to the companyâs dividend, to take effect in June 2023. Core earnings per share of $7.20 forecast for 2023 is slightly below the $7.30 expectation. 

Laguarta concluded prepared remarks with a focus on cost-cuts moving forward.

âWe remain focused on delivering at least $1B in productivity savings with our holistic cost management program in which all costs are treated like an investment and employees are encouraged to act like owners,â he concluded.

Shares of the Purchase, New York-based (PEP) beverage and snack giant rose 1.54% in premarket trading on Thursday.
Read more on the details of the quarter.