Purchased in New York. – Pepsico, Inc. executives plan to increase sales of Frito-Lay North America (FLNA) business units in price range architecture and telecommuting categories.
Operating profits fell for three North American business units (FLNA, Quaker Foods North America and PepsiCo beverages) in the fiscal year ended December 28, 2024. This was a 6% increase from $9.07 billion in the previous fiscal year, or $6.56 per share. Annual net revenues rose 0.4% from $91.47 billion to $91.85 billion. PepsiCo’s stock price on February 4th was the day that concluded with NASDAQ at $143.9 per share, down 4.5% from the February 3rd closing at $150.27 per share.
At FLNA, operating profit fell 7% from $676 million to $6.32 billion, primarily reflecting an increase in certain operating costs and a decrease in organic content. Net revenue fell 0.6% from $249.1 billion to $24.76 billion.
In a revenue call on February 4th, PepsiCo CEO Ramon Ragualta said the two recent acquisitions will allow FLNA to have better access to the away-home category.
“Now we are dialing the opportunity to make our products available from home, but solutions that are ready to eat, not just in the form of traditional bags of our snacks. “In the form of a higher experience, we have a mini meal solution,” he said. “So the acquisition of SIETE and SABRA will supply the strategy as not only treats are better, but also offers options to participate in meals and mini meals in a much more intentional way.”
Packaging innovations, including single service packs and multipacks, are designed for consumers interested in potion control and value.
“We’re trying to create a solution for consumers at the moment when we’re looking for a 200-calorie 300-calorie solution that will take over the next few hours of the next work or what we’re trying to accomplish for hours. said Ragualta.
He added that FLNA is baked, lightly salted and highlights items that are free of artificial ingredients.
For now, lowering prices is not an option.
“I don’t think we have any negative pricing,” Ragualta said. “We think there will be more surgical price pack strategies and implementation strategies that will drive growth in this category.”
For PepsiCo beverages in North America, operating income was 2.5 billion in the previous fiscal year, mainly due to increased operating costs, reduced organic content, the 9% point impact of higher obstacles, and other related charges. It fell by 11% from $80 million, down $2.58 billion. The impact of 7% points from investment and juice transaction-related accounts receivable, and higher restructuring fees and higher advertising and marketing costs. Net revenue rose 0.5% from $27.63 billion to $27.777 billion.
PepsiZero Sugar and Propel brands had a double-digit percentage of net revenue growth in the fiscal year. Gatorade has gained market share.
In a revenue call, Laguarta was asked whether GLP-1 weight control drugs could affect PepsiCo.
“At this point, we see that because of the low level of adoption, we have little impact on our business and our categories at this point, for those coming and going to treatment,” he said. PepsiCo’s protein drink added. Like muscle milk, it can appeal to consumers of GLP-1 drugs.
GLP-1 drugs can have a positive effect on Quaker Foods North America products.
“If you look at Quakers today, there are many products in breakfast opportunities that are high protein. I think there are many more opportunities to expand that.”
QFNA operating profit for the fiscal year fell 38% from $492 million to $333 million, with a decrease in volumes primarily from charges related to Quaker Recalls, increased certain operating costs; It reflects the impact of 14% points. Net revenue fell 14% from $31 billion to $2.68 billion.
Quakers were recalled at their Danville, Illinois plant in December 2023. The decision to permanently close the plant was made in April 2024.
In the fourth quarter of the company, PepsiCo’s net income was $1.52 billion, or $1.11 per share of common stock, up 17% from $13 billion (94 cents per share) in the same period last year. . For the fourth quarter, net revenue fell 0.2% to $277.8 billion, down from $27.85 billion.
Pepsico expects organic revenue growth to be at a lower digit percentage this fiscal year, resulting in a constant currency growth rate for the mid-single digit EPS core.
