By Senad Karaahmetovic
Shares of PepsiCo (NASDAQ:PEP) are up about 1.7% in premarket Thursday after the food and beverage giant reported better-than-expected fourth-quarter results.
PEP posted an EPS of $1.67 on revenue of $28 billion, beating the analyst consensus for earnings of $1.65 per share on revenue of $26.82B. Overall, net revenue soared by 11%, driven by the 25% revenue growth in the Frito-Lay North America business unit. Organic revenue jumped by 14.6%.
Elsewhere, Latin America revenue soared by 21% to easily beat the average analyst estimate and helped to offset falling revenue from Europe (-2%).
The company said it identified $1B in productivity savings in 2022 and is working to mitigate inflation by further boosting productivity. PEP expects $1B of share buybacks in 2023 while the company also announced a 10% dividend hike, which represents the 51st consecutive annual increase.
On a negative note, the company’s full-year EPS guidance of $7.20 came in below the consensus of $7.28. PepsiCo also said it expects to deliver a 6% organic revenue growth and an 8% EPS growth in constant currency.
The company's average prices jumped 16% for 4Q22.