PepsiCo (NASDAQ:PEP) on Thursday reported quarterly earnings and revenue that topped analysts’ expectations after strong performances by its North American beverage and snack divisions.
In 2020, Pepsi expects 4% organic revenue growth and 7% earnings per share growth after stripping out currency fluctuations. The company is forecasting adjusted earnings per share of $5.88 for the year, shy of the analysts’ forecast of $5.95. The beverage and snack giant cited foreign currency as an expected headwind for 2020.
The company, whose products include Frito snacks, reported fiscal fourth-quarter net income of $1.77 billion, or $1.26 per share, down from $6.85 billion, or $4.83 per share, a year earlier.
Excluding items, Pepsi earned $1.45 per share, topping the $1.44 per share expected by analysts.
Net sales rose nearly 6% to $20.64 billion, beating expectations of $20.27 billion. Organic revenue, which excludes the impact of acquisitions and divestitures and currency, rose 4.3% during the quarter.
Frito-Lay and Pepsi’s North American beverage unit both reported organic sales growth of 3%. Frito-Lay’s volumes increased by 2% in the quarter. Organic sales for Quaker Foods North America, which includes Aunt Jemima syrup and Life cereal, were unchanged from a year earlier.
Outside of the U.S., Pepsi’s international units reported strong organic revenue growth. In both Europe and Latin America, organic sales jumped 6% from a year ago.
Shares dropped 71 cents, or 0.5%, to $145.37.