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Industryweek 8256 Pepsi
Industryweek 8256 Pepsi
Industryweek 8256 Pepsi
Industryweek 8256 Pepsi
Industryweek 8256 Pepsi

PepsiCo Beats Expectations, Profits Fall

Feb. 11, 2015
Pepsi said it would increase the dividend to 7.3% and also laid out a plan to spend as much as $9 billion on stock buybacks and dividends for 2015.

PepsiCo (IW 500/18) released its earnings report Wednesday, detailing a decline in revenue, but still coming in above Wall Street estimates on strong sales of its snack foods.

The company reported revenue of $19.95 billion, down 1% year over year. Profits were $1.31 billion, a drop from $1.74 billion in 2013. Unfavorable foreign exchange rates are blamed for knocking down revenue by six percentage points.

The Frito-Lay division helped prop up sagging sales of carbonated soft drinks and other food entities. Revenue at Frito-Lay North America grew 3%, helping offset a drop in revenue at Quaker of 3% in the U.S. and 10% in Europe.

Pepsi said it would increase the annual dividend to 7.3% and also laid out a plan to spend as much as $9 billion on stock buybacks and dividends for 2015.

At the same time, it predicted a cut in revenue and per-share earnings for the upcoming year based on the devaluation of foreign currency.

On Tuesday, rival Coca-Cola reported a profit loss of 55%, blaming it on the low exchange rate for foreign money and one-time charges.

Both companies predict a challenging year ahead in 2015.

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