PepsiCo boosted sales 5% in its fourth quarter to $19.5bn thanks to steady demand in its domestic US market and a 53rd week in the financial year.
It helped the drinks-and-snacks giant shake off the currency volatility plaguing multinationals. However, the effects of the strong dollar versus devalued currencies in Latin America and the UK dragged down full-year revenues in 2016 by 3% to $62.8bn, down 0.4% on the previous year.
PepsiCo, like rival drinks giant Coca-Cola in results last week, has improved its performance in the US and has developed healthier products to appeal to changing consumer tastes.
“We concluded 2016 with another strong quarter of operating performance, capping off a successful year,” CEO Indra Nooyi said. “We met or exceeded every financial goal we set for 2016, while delivering a good balance between revenue performance and productivity.”
Reported operating profit increased 6% in the final three months to $2.4bn but net income for the quarter slipped 18% to $1.4bn as the deconsolidation of the Venezuelan operations hit the bottom line. Full-year net income was rose 16% to $6.4bn.
The group was cautious in its outlook for 2017, forecasting organic sales growth of just 3% as foreign exchange translation and the extra reporting week in 2016 held PepsiCo back.
Nooyi said: “Looking ahead to 2017, we expect solid financial performance despite anticipated continued macroeconomic challenges. Further, reflecting our commitment to providing attractive cash returns to shareholders, we are increasing our dividend per share for the 45th consecutive year, beginning with our June 2017 payment.”
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