PepsiCo Q4 Profits Up 60%

International snack food and soft drinks giant PepsiCo has recorded a 61% rise in fourth quarter profit thanks to a strong performance by its Frito Lay snack division in the US and an encouraging international performance.

Earnings grew to $1.78 billion, or $1.06 per share during the quarter, compared to $1.11 billion, or $0.65 per share, reported in the fourth quarter of 2005. Excluding one-off charges relating to restructuring and taxes, the company generated earnings of $0.72 per share in 2006, an increase of 11%. Net revenue increased 2.8% to $10.38 billion from the previous $10.1 billion.

For the full year, reported net revenue was up 8% and, excluding the impact of the extra reporting week in 2005, net revenue increased more than 9%. Earnings per share, which reached $3.34 for the full year 2006, included tax benefits of $0.37 per share.

Commenting on the results, PepsiCo president and CEO Indra Nooyi said: “We are pleased with our performance for the quarter and the full year. Our international business performed particularly well, delivering double-digit revenue and operating profit growth, and Frito-Lay North America delivered robust sales and profit results. The performance demonstrated the power of PepsiCo’s portfolio – balancing opportunities and challenges across our businesses to deliver consistently strong financial results.”

Ms Nooyi continued: “We also made good progress on our key strategic initiatives: providing greater choices to consumers in the area of healthier snacks and beverages; strengthening our international presence; and advancing our business process transformation project, including our SAP systems implementation.”