In its Q4 earnings report, which was released on Tuesday, PepsiCo (PEP, Financial) net sales declined 0.2 percent in the fourth quarter, $27.78 billion versus $27.89 billion as expected. This is the company's third damaging miss in revenue predictions in a row.
This is attributed to decreased consumer spending on salty and savory snack items such as those in the Frito Lay North America segment. These difficulties notwithstanding, the net income for PepsiCo was $1.52 billion, or $1.11 per share, up from $1.3 billion, or 94c per share, a year earlier. Earnings per share was adjusted to $1.96, which was slightly above the expected $1.94.
Other than the 6% organic revenue growth internationally, in Africa and Asia too, the company has done a great job. PepsiCo forecasts low single-digit organic revenue growth for 2025 and has stated that it is set to increase its annual dividend by 5%, which is the 53rd consecutive year of dividend increases.
In light of changing consumer tastes, the company is set to relaunch its Simply product line and add to its multicultural snack offerings. Moreover, PepsiCo also seeks to increase productivity by automating its plants and warehouses.
The disappointment in PepsiCo's revenue miss caused its shares to fall by 4.5 following the earnings announcement.
