PepsiCo, Inc. reported a net revenue of $91.9 billion for the fiscal year ending December 28, 2024, a slight increase from $91.5 billion in the previous year. The company's operating profit rose by 8% to $12.9 billion, with an operating margin improvement of 0.9 percentage points, reaching 14.0%. This growth was primarily attributed to effective net pricing strategies and productivity savings, despite facing challenges such as increased operating costs and a decline in organic volume. The net income attributable to PepsiCo increased by 5.5% to $9.6 billion, translating to a diluted earnings per share of $6.95, up from $6.56 in 2023.
In terms of strategic developments, PepsiCo made significant organizational changes, including the acquisition of the remaining 50% stake in Sabra Dipping Company, which became a wholly-owned subsidiary in December 2024. This acquisition is expected to enhance PepsiCo's portfolio in the refrigerated dips and spreads market. Additionally, the company announced a restructuring of its North American food and beverage businesses into a unified North America Region, aimed at improving operational efficiency and consumer engagement. This restructuring will take effect in the first quarter of 2025.
Operationally, PepsiCo faced a decline in organic volume across several divisions, particularly in its Quaker Foods North America segment, which saw a 14% decrease in net revenue due to a product recall. The Frito-Lay North America division also experienced a 1% decline in net revenue, driven by a decrease in organic volume. However, the Europe division reported a 5% increase in net revenue, supported by effective pricing and organic growth. The company employed approximately 319,000 people globally as of the end of 2024, reflecting its extensive operational footprint across more than 200 countries.
Looking ahead, PepsiCo anticipates continued challenges from inflationary pressures and evolving consumer preferences, particularly in the context of a competitive landscape. The company is focused on its pep+ transformation strategy, which aims to drive sustainable growth through innovations in product offerings and supply chain efficiencies. PepsiCo expects to return approximately $8.6 billion to shareholders in 2025, comprising $7.6 billion in dividends and $1 billion in share repurchases, indicating a commitment to shareholder value amidst ongoing market fluctuations.
About PEPSICO INC
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