International food giant PepsiCo (PEP.US) has just reported its latest Q4 2024 results to investors. The company slightly disappointed investors with lower-than-expected revenues, which may indicate that consumers are spending less money on sugary drinks and snacks. On the other hand, however, the company was successful in implementing new cost-saving measures, which allowed it to generate higher profits. The board also reported that the company's dividend will increase by 5% to $5.69 per share.
Below you will find highlights from the report:
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Create account Try a demo Download mobile app Download mobile app- Adjusted earnings per share: $1.96 (est. $1.94)
- Revenue: $27.78 billion (est. $28.05 billion)
- Organic revenue growth: +2.1% (estimate +2.27%)
- Frito-Lay segment revenue down 2% year-on-year
- Annual dividend growth: +5% to $5.69/share (53rd consecutive annual increase)
Outlook for 2025:
- Organic revenue growth: Low single-digit growth
- Base currency EPS growth: Medium single-digit growth
- Foreign exchange rates are expected to negatively impact reported revenue and EPS by ~3 percentage points
- Total cash return to shareholders: ~$8.6 billion (dividends: $7.6 billion, share repurchases: $1.0 billion)
Opinion:
Performance overall is down, although the market might have expected business dynamics in the snack market to take a turn for the worse. Revenues fell, which is a negative sign, although the overtones of this are somewhat neutralized by higher earnings and the dividend policy, which is very important in the case of this company. PepsiCo will raise its dividend for the 53rd time from the government in terms of annual values.
The company's shares are losing nearly 2.5% today before the Wall Street open and are back near the 100-month EMA zone, which has been an important support point for the company's shares in the past. Source: xStation
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