PepsiCo Q4 Earnings Top Estimates; Adopts $10B Share Buyback Program - PepsiCo (NASDAQ:PEP)

PepsiCo Inc PEP reported fourth-quarter FY21 sales growth of 12.4% year-on-year, to $25.24 billion, beating the consensus of $24.22 billion.
Net revenue from Frito-Lay North America increased 13% Y/Y, Quaker Foods North America rose 9%, and PepsiCo Beverages North America climbed 13%.
Latin America sales rose 16% Y/Y, Europe sales grew 8%.
The gross profit increased 9.1% Y/Y to $13.1 billion, and the margin fell 161 basis points Y/Y to 51.9%.
The operating margin contracted 244 basis points to 10.1%, and operating income for the quarter fell 9.3% to $2.6 billion.
The company held $5.7 billion in cash and equivalents as of December 25, 2021. Net cash provided by operating activities for the twelve months totaled $11.6 billion.
Adjusted EPS of $1.53 beat the analyst consensus of $1.52.
Dividend: Pepsico announced a 7% increase in its annualized dividend to $4.60 per share from $4.30 per share, effective with the dividend paid in June 2022.
Buyback: The company also approved a new share repurchase program of up to $10 billion of its common stock through February 28, 2026.
"For 2022, we expect to deliver 6 percent organic revenue growth, which is at the high-end of our long-term target range and implies a strong acceleration in our organic revenue growth on a two-year basis. Additionally, we expect to deliver 8 percent core constant currency earnings per share growth, which reflects the impact of inflationary pressures across our value chain and planned investments in our business," said Chairman and CEO Ramon Laguarta.
Outlook: PepsiCo sees FY22 core EPS of $6.67 versus the consensus of $6.73. The company expects a 6% increase in FY22 organic revenue.
Price Action: PEP shares are trading higher by 0.33% at $172.50 in premarket on the last check Thursday.

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