Pepsi Co’s 2016 earnings fell to US$1.4bn, or 97 US cents a share, down from US$1.72bn, or US$1.17 a share a year earlier, due to interest expenses and an income tax provision.
However, on an adjusted basis, earnings per share rose to US$1.20, above analyst expectations of US$1.16, while revenue grew by 5% to US$19.52bn, above estimates for US$19.51bn.
Volumes rose across the company’s units – with snack organic volumes up 3% and beverage volumes ahead 1% – but the strong dollar hurt foreign results as it caused the price paid of raw goods abroad to be higher.
PepsiCo’s chief executive Indra Nooyi said the company expects global economy challenges to continue this year.
The group expects its 2017 earnings per share to be $5.09, but that was below the current forecast of US$5.15, with the company forecasting organic revenue growth of at least 3%.
Story by ProactiveInvestors