Drinks and snacks propel PepsiCo to 5% revenue growth | Progresiv
PepsiCo has said that it finished 2016 with ‘another strong quarter of operating performance’, after announcing 5% growth in its fourth-quarter revenue and turnover for the year of 62.8 billion dollars. 
Fourth-quarter revenue across all of its business units was up 5%, as was full-year revenue for its Frito-Lay North America division.
Many of PepsiCo’s business units benefitted from ‘productivity gains’, as well as reduced raw material costs for its products.
But its performance was particularly improved by growing demand for healthier drinks and snacks, including diet and reduced-sugar beverages and food products that were low in sodium. The company announced in May that it would shift its focus away from colas, as the sugar content of products comes under increasing scrutiny and consumers look for foods and drinks that deliver in terms of health.
Globally, just 12% of its revenues come from trademark Pepsi and less than 25% come from carbonated soft drinks.
In the past year, it has released J7 apple juice in Russia with the fibre of a whole apple in every glass; launched Naked cold-pressed juices to tap into the growing popularity of cold-pressed juice; and reformulated its Mirinda and 7UP drinks, as well as trademark Pepsi, to contain less sugar than before.
In functional beverages, it has also launched a range of Tropicana probiotic beverages and acquired the probiotic and kombucha drinks company Kevita.
“We met or exceeded every financial goal we set for 2016, while delivering a good balance between revenue performance and productivity,” said PepsiCo CEO and chairman Indra Nooyi. “Looking ahead to 2017, we expect solid financial performance despite anticipating 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.”
Nooyi will remain with the business, even as long-time counterpart and Coca-Cola CEO Muhtar Kent makes way in May.
PepsiCo’s full-year revenue was 62.8 billion dollars, its gross profit was 34.6 billion dollars, and its operating profit was 9.8 billion dollars.
Those figures are relatively flat compared to its fourth quarter performance, which was 5% better than the same period in 2015. (www.foodbev.com)
