PepsiCo said operating profit for the 12-week quarter declined 56% and operating margin fell 10.1 percentage points. The company cited impairment charges related to the Rockstar and Be & Cheery brands, operating cost increases, a 5-percentage-point impact of higher commodity costs, increased restructuring charges and a decline in organic volume as factors.

1. 01

   PepsiCo said operating profit for the 12-week quarter declined 56% and operating margin fell 10.1 percentage points. The company cited impairment charges related to the Rockstar and Be & Cheery brands, operating cost increases, a 5-percentage-point impact of higher commodity costs, increased restructuring charges and a decline in organic volume as factors.

2. 02

   PepsiCo said net cash provided by operating activities for the 24 weeks was $1.0 billion, down from $1.3 billion in the prior-year period, and attributed the decline to lower operating profit. Net cash used in investing activities for the same period was $4.1 billion, which included acquisition payments for poppi of $1.9 billion and Siete of $1.2 billion.

3. 03

   The company said net cash provided by financing activities for the 24 weeks was $1.9 billion, which included long-term debt issuances of $3.5 billion and net short-term borrowings of $5.2 billion. It paid $4.2 billion for dividends and share repurchases and $2.5 billion for long-term debt repayment.

4. 04

   PepsiCo said it expects total pre-tax charges for the 2019 Productivity Plan of approximately $6.15 billion (including cash expenditures of approximately $5.1 billion), and through June 14, 2025 has incurred pre-tax charges of $3.1 billion (including cash expenditures of $2.3 billion). The company also said unfavorable foreign exchange reduced net revenue performance by 1.5 percentage points in the 12-week quarter.

Key figures

Quarter ended June 14, 2025

Revenue

$22.7B

Operating income

$1.8B

Net income

$1.3B

EPS

$0.92

Gross profit

$12.4B

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

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