PepsiCo Inc (NASDAQ: PEP) reported fourth-quarter FY22 sales growth of 10.9% year-on-year to $28 billion, beating the consensus of $26.84 billion.
Net revenue from Frito-Lay North America increased 25% Y/Y, Quaker Foods North America rose 16%, and PepsiCo Beverages North America climbed 6%. Latin America sales rose 21% Y/Y.
Gross profit increased 11.1% Y/Y to $14.5 billion, and the profit margin improved 11 basis points Y/Y to 52.06%.
Operating margin contracted 723 basis points to 2.9%, and operating income for the quarter plunged 68.2% to $815 million.
The company held $5.1 billion in cash and equivalents as of Dec. 31, 2022. Net cash provided by operating activities for the year totaled $10.8 billion.
Core EPS of $1.67 beat the analyst consensus of $1.65.
Dividend: PEP announced a 10% increase in its annualized dividend to $5.06 per share from $4.60 per share, effective with the dividend expected to be paid in June 2023.
Outlook: PepsiCo expects FY23 organic revenue growth of 6%.
It sees FY23 core constant currency EPS growth of 8%.
Pepsico expects FY23 EPS of $7.20 against an estimate of $7.28.
Pepsico expects total cash returns to shareholders of $7.7 billion, comprised of dividends of $6.7 billion and share repurchases of $1 billion.
Price Action: PEP shares are trading higher by 1.19% at $173.19 on the last check Thursday.
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This article PepsiCo Q4 Earnings Top Estimates; Hikes Dividend originally appeared on Benzinga.com
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Source: https://finance.yahoo.com/news/pepsico-q4-earnings-top-estimates-163240545.html