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PepsiCo, Inc. (PEP) has reported 18.45 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $1,401 million, or $0.97 a share in the quarter, compared with $1,718 million, or $1.17 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,733 million, or $1.20 a share compared with $1,564 million or $1.06 a share, a year ago. Revenue during the quarter grew 5 percent to $19,515 million from $18,585 million in the previous year period. Gross margin for the quarter contracted 17 basis points over the previous year period to 54.17 percent. Total expenses were 87.80 percent of quarterly revenues, down from 87.95 percent for the same period last year. This has led to an improvement of 15 basis points in operating margin to 12.20 percent.
Operating income for the quarter was $2,381 million, compared with $2,240 million in the previous year period.
"We concluded 2016 with another strong quarter of operating performance, capping off a successful year. We met or exceeded every financial goal we set for 2016, while delivering a good balance between revenue performance and productivity," said chairman and chief executive officer Indra Nooyi. "Looking ahead to 2017, we expect solid financial performance despite anticipated continued macroeconomic challenges. Further, reflecting our commitment to providing attractive cash returns to shareholders, we are increasing our dividend per share for the 45th consecutive year, beginning with our June 2017 payment."
Pepsico forecasts revenue to grow at 3 percent for the fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be $5.09.
Operating cash flow falls marginallyPepsiCo, Inc. has generated cash of $10,404 million from operating activities during the year, down 1.66 percent or $176 million, when compared with the last year. The company has spent $7,148 million cash to meet investing activities during the year as against cash outgo of $3,569 million in the last year. It has incurred net capital expenditure of $2,941 million on net basis during the year, up 10.07 percent or $269 million from year ago.
The company has spent $2,942 million cash to carry out financing activities during the year as against cash outgo of $3,828 million in the last year period.
Cash and cash equivalents stood at $9,158 million as on Dec. 31, 2016, up 0.68 percent or $62 million from $9,096 million on Dec. 26, 2015.
Working capital increases
PepsiCo, Inc. has recorded an increase in the working capital over the last year. It stood at $5,954 million as at Dec. 31, 2016, up 9.19 percent or $501 million from $5,453 million on Dec. 26, 2015. Current ratio was at 1.28 as on Dec. 31, 2016, down from 1.31 on Dec. 26, 2015.
Days sales outstanding were almost stable at 16 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 14 days for the quarter, when compared with the last year period.
Debt moves up
PepsiCo, Inc. has witnessed an increase in total debt over the last one year. It stood at $36,945 million as on Dec. 31, 2016, up 11 percent or $3,661 million from $33,284 million on Dec. 26, 2015. Total debt was 49.84 percent of total assets as on Dec. 31, 2016, compared with 47.78 percent on Dec. 26, 2015. Debt to equity ratio was at 3.30 as on Dec. 31, 2016, up from 2.77 as on Dec. 26, 2015. Interest coverage ratio deteriorated to 4.01 for the quarter from 7.07 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
