PepsiCo 4Q results top Wall Street's expectations
The company's earnings and revenue beat analysts' estimates. It also provided an annual earnings outlook in line with Wall Street expectations and raised its quarterly dividend by 5.6 percent.
Shares of PepsiCo. rose on the news.
The results mark the end of what CEO Indra Nooyi said would be a "transitional year,'' with the company embarking on a cost-cutting program and stepping up investment in its flagship brands. PepsiCo's brands include Frito-Lay, Gatorade and Quaker.
"I believe that 2012 marked a turning point for PepsiCo,'' Nooyi told investors during a conference call after the results were released. "We truly stepped up our game and created the foundation for continued improvement and competitive advantage.''
The company, based in Purchase, New York, has been increasingly looking for growth from countries such as China and India where the appetite for packaged foods and drinks is rising more quickly than in the saturated US market. But over the past year, PepsiCo has also made a point of investing more heavily in its namesake soda in North America, most recently with the sponsorship of the Super Bowl halftime show starring Beyonce.
As eating and drinking habits change, PepsiCo is also focusing on new products that position it for the future. For example, it introduced a mid-calorie version of its namesake soda called Pepsi Next last year to win back soda drinkers who want to cut
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