PepsiCo Inc. Earnings: Good outcome during turbulent times.


PURCHASE, N.Y., Feb. 11, 2015 PepsiCo, Inc. (NYSE: PEP) today reported core earnings per share of $1.12 for the fourth quarter of 2014 and $4.63 for the full year, on organic revenue growth of 5 percent for the quarter and 4 percent for the full year.

“We are pleased to report that we met or exceeded each of our full-year 2014 financial targets. Our results are a reflection of our diverse global footprint, the strength of our integrated food and beverage product portfolio, successful innovation and exceptional marketplace execution,” said Chairman and CEO Indra Nooyi.
“As we look ahead to 2015, we expect to again deliver results consistent with our long-term financial objectives, despite the anticipated challenging and volatile global macro environment. Further, returning cash to shareholders remains a top priority, and we plan to return approximately $8.5 to $9 billion to shareholders through both higher dividends and share repurchases.”

PepsiCo’s Organic revenue grew 4% for the full year and 5% in the fourth quarter. Core gross and operating margins expanded for the quarter and the full year. Free cash flow exceeded $8 billion. PepsiCo’s focus on capital allocation discipline resulted in another year of significant core net ROIC improvements. Annual dividend increased for the 42nd consecutive year and $8.7 billion in total were returned to shareholders in the form of dividends and share repurchases, which is a 36% increase over 2013.

The Company isn’t ruling out acquisitions after focusing the past two years on a cost- cutting drive that has pushed gross margins higher for 10 straight quarters. PepsiCo has managed to do pretty well in-spite of weakening foreign currencies and changing consumer perceptions.

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