PepsiCo said operating profit rose 11% and operating margin increased 1.6 percentage points. The company cited effective net pricing, productivity savings and a 3-percentage-point impact from prior-year impairment charges related to its TBG investment as drivers of the increase. It said these were partly offset by certain operating cost increases and a decline in organic volume.

1. 01

   PepsiCo said operating profit rose 11% and operating margin increased 1.6 percentage points. The company cited effective net pricing, productivity savings and a 3-percentage-point impact from prior-year impairment charges related to its TBG investment as drivers of the increase. It said these were partly offset by certain operating cost increases and a decline in organic volume.

2. 02

   PepsiCo said operating cash flow for the 24 weeks ended June 15, 2024 was $1.3 billion, down from $2.0 billion a year earlier. The company attributed the decline to unfavorable working capital comparisons. Net cash used for investing activities was $1.5 billion, and net cash used for financing activities was $2.9 billion.

3. 03

   PepsiCo said it returned $4.0 billion to shareholders through dividends and share repurchases in the 24 weeks. It said it also repaid $2.9 billion of long-term debt, had net short-term borrowings of $2.2 billion, and issued $1.8 billion of long-term debt. The company said it expects to return a total of about $8.2 billion to shareholders in 2024, including about $7.2 billion in dividends and about $1.0 billion in share repurchases.

4. 04

   PepsiCo said the 2019 Productivity Plan has been extended through the end of 2028 and that it expects total pre-tax charges of about $3.65 billion, including cash expenditures of about $2.9 billion. The company said cumulative pre-tax charges through June 15, 2024 were $2.1 billion, including cash expenditures of $1.6 billion. It expects pre-tax charges and cash expenditures of about $325 million each for the remainder of 2024.

Key figures

Quarter ended June 15, 2024

Revenue

$22.5B

Operating income

$4.0B

Net income

$3.1B

EPS

$2.23

Gross profit

$12.6B

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.