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Recession Takes Pop Out of Cola Profits

Pepsi Profit Falls, but Meets Expectations

posted: 284 DAYS 11 HOURS AGO

comments: 51

filed under: Earnings

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PURCHASE, N.Y. (Feb. 13) - PepsiCo Inc., the world's second-biggest beverage maker, said Friday its fourth-quarter profit fell partly on restructuring and impairment charges, but adjusted results met analysts' expectations.

Earnings dropped to $719 million, or 46 cents per share, compared with $1.26 billion, or 77 cents per share, a year earlier.

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Excluding restructuring and impairment charges and other items, net income was $1.39 billion, or 88 cents per share. That matched analysts' average earnings expectation of 88 cents per share, according to Thomson Reuters.

PepsiCo, which sells Pepsi, Gatorade and other brands, said revenue climbed 3 percent to $12.73 billion from $12.35 billion. Analysts forecast revenue of $12.8 billion.

The Purchase, N.Y., company said the stronger dollar hurt quarterly earnings by 5 cents per share and also suppressed revenue growth.

PepsiCo Americas Foods revenue climbed 5 percent in the quarter, while Frito-Lay North America reported 7 percent sales growth. Quaker Foods North America revenue grew 2 percent and Latin America Foods' sales edged up 1 percent.

PepsiCo Americas Beverages posted a 10 percent sales decline partly due to the overlap of the debuts of G2 and SoBe Lifewater in the year-ago period and shipment timing related to its North American beverage revitalization. The revitalization effort includes new brand identities for products such as Gatorade, Pepsi, Sierra Mist and Mountain Dew and a new SoBe Lifewater formulation.

Full-year net income declined 9 percent to $5.14 billion, or $3.21 per share, compared with $5.66 billion, or $3.41 per share, in the prior year.

Adjusted earnings were $5.89 billion, or $3.68 per share.

Annual revenue rose 10 percent to $43.25 billion from $39.47 billion.

The company expects mid- to high single-digit growth for 2009 earnings and revenue. PepsiCo predicts the first half of the year, especially the first quarter, will have the hardest year-over-year comparisons partly due to commodity costs and the stronger dollar.

PepsiCo had revenue of more than $43 billion in 2008 and has a worldwide work force of about 198,000 people.

Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

2009-02-13 07:27:32

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51 comments

StarDazed823 02:36:18 PM Feb 15 2009

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COKE IS BETTER ANYWAY.....WELL NOW LOOK UP THE STATES THAT WILL BE GETTING JOBS BY CHECKING OUT STATES LIKE "MA" DO YOU KNOW WHAT STATE THIS IS ? I DO...JUST LOOK UP "EVERGREEN SOLAR "I BET THERE STOCK GOES ..UP BUT CAN,T FIND OUT HOW MANY JOBS IT WILL GIVE TO US??,,,,,,BUT THERE ARE MORE STATES ALSO THAT WIND AND SOLAR WILL HELP THE JOB LOSS BUT CAN,T FIND OUT WHO IS GOING TO HIRE OR HOW MANY THEY NEED?,,,,,ANYBODY KNOW??????? ?????????????????????

Jwat66 12:25:30 AM Feb 14 2009

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the profirs are falling because they keep taking good products off the market and come out with stuff that tastes like junk. plus they redid their packaging and all that printing costs money. their products also are tasting flat and watered down too.

Sod124 08:23:59 PM Feb 13 2009

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I don't think their 8 packs are making it........

Msjanemck 07:11:20 PM Feb 13 2009

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Pepsico is talking about the Food Pyramid. They want to push healthy snacks. Pepsi is a good buy at 49.

ERBRITT 05:53:11 PM Feb 13 2009

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Everyone would be better off health wise to not drink flaorored carbonated drinks anyone, It nothing bu sucrose, flavoring and carbonated water. Big proft makers for a drink that makes you fat and eats the enamel off your teeth. Just asy no to them.

RMsmokediver 05:45:21 PM Feb 13 2009

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We have discontinued purchasing pepsi products also due to their strong support of obama and gays. The prices have gone through the roof and we have begun using generic brands also. I still purchase a coke now and then when i can find them on sale, after being a dedicated pepsi drinker almost all my life, I will never purchase a pepsi product again no matter the price. Thanks pepsi, you screwed up big time.

Catxh23 05:05:04 PM Feb 13 2009

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Yup, coke and pepsi prices have skyrocketed this past year and they wonder why sales are down, recession or not, people see high percentage increases and will boycott.

Cactuspete54 04:57:48 PM Feb 13 2009

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They are down billions but, HEY, they beat estimates.

Cpt90806 04:39:13 PM Feb 13 2009

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Well with prices almost doubling in a bad economy I can see why we buy less soda myself included

uhatemet00 03:53:10 PM Feb 13 2009

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I actually had to use my credit card to by a 20oz. bottle of coke! It now cost you $1.75 for what used to be a $1.00 a year ago. What's funny is a bottle of beer only cost me a buck during happy hour. Maybe Coke and Pepsi ought to look into happy hours. SYKEL said it bet: DRINK BEER NOT SODA!!!!!

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51 comments