PepsiCo increases its results: increase in the dividend, announcement of a share buyback
The website Results for the fourth quarter of 2022 of PepsiCo convinced the market. The American multinational closed the last quarter with a profit of 518 million dollars, almost three times lower than that of the same period in 2021, while Full-year 2022 earnings will reach $8.91 billion, up 16%.. She also announced that will increase the dividend for fiscal year 2023 by 10%. and a Billion dollar stock buyback program..
“We are pleased with our fourth quarter and full year results as our business remained resilient and delivered another year of strong growth. Our results show that the investments we have made in our people, brands, portfolio, value chain and go-to-market systems are paying off.” , did he declare. Ramon LaguartaPresident and CEO of the New York company.
After Pepsico’s numbers and plans were revealed, the title is up 0.95% on Wall Street.. So far in 2023, the company’s shares have fallen 5.2% and are currently trading at $172.78.
“Going forward, we will continue to focus on driving growth and market success, while developing advantageous capabilities to strengthen our long-term business. This includes embedding pep+ (its sustainability strategy) at the heart of our business, in the way we innovate, operate, manage our people and build our brands,” added Mr. Laguarta.
The website income PepsiCo’s revenue rose 10.9% last quarter from $25.248 billion to $27.996 billion, well above consensus estimates. For the full year 2022, sales increased 8.7% to $86.392 billion. Besides, Earnings per share for the year rebounded nearly a dollar to $6.42. per share, in line with consensus expectations.
By business segment, all geographies and divisions either increased or remained stable for the quarter and full year 2022. The only decline was in the company’s European operations, which however barely reduced their sales revenue of $300 million to reach $12.724 billion.
Consider fiscal year 2023, the company expects organic revenue growth of 6%. and a base annual effective tax rate of 20%. In addition, they estimate that they will pay 7.7 billion to shareholders, including 6.7 billion in the form of dividends and the remaining billion in the form of share buybacks. According to PepsiCo, this is the fifty-first consecutive annual dividend increase.