Thu, Apr 24, 10:02 AM (29 days ago)
**PepsiCo, Inc. (PEP) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $17.92 billion, a 2% decrease from the previous year. - **Profit Margins:** Operating margin at 14.4%, down from 14.9%. - **Net Income:** $1.83 billion, a 10% decrease from the previous year. - **Earnings per Share (EPS):** $1.33 (diluted), a 10% decrease. - **Cash Flow:** Net cash used for operating activities was $973 million, slightly improved from the previous year. **Segment Performance:** - **PepsiCo Foods North America (PFNA):** Revenue decreased by 1%, operating profit increased by 2%. - **PepsiCo Beverages North America (PBNA):** Revenue slightly increased, operating profit decreased by 10%. - **International Beverages Franchise (IB Franchise):** Revenue increased by 3%, operating profit increased by 6%. - **Europe, Middle East and Africa (EMEA):** Revenue decreased by 2%, operating profit increased by 3%. - **Latin America Foods (LatAm Foods):** Revenue decreased by 12%, operating profit decreased by 18%. - **Asia Pacific Foods:** Revenue decreased by 2%, operating profit decreased by 9%. **Key Trends and Uncertainties:** - **Foreign Exchange:** Unfavorable foreign exchange translation impacted revenue by 3 percentage points. - **Commodity Costs:** Higher commodity costs impacted operating profit by 3 percentage points. - **Productivity Savings:** Achieved productivity savings, partially offsetting cost increases. - **Acquisitions:** Completed the acquisition of Siete and announced the acquisition of poppi. - **Geopolitical Risks:** Continued geopolitical uncertainties and economic conditions in international markets. - **Regulatory Risks:** Potential impact of new or increased taxes and regulations on products and packaging. **Future Operations and Impact:** - **Investments:** Continued investment in productivity initiatives and organizational restructuring. - **Dividends and Share Repurchases:** Plans to return approximately $8.6 billion to shareholders in 2025. - **Debt Management:** Issued new senior notes and managed debt obligations effectively. - **Supply Chain:** Continued focus on managing supply chain risks and ensuring operational efficiency. **Conclusion:** PepsiCo's Q1 2025 results reflect a challenging operating environment with revenue and profit declines due to foreign exchange impacts and higher commodity costs. The company is focusing on productivity savings, strategic acquisitions, and effective debt management to mitigate these challenges and drive future growth.