Fizzy beverage giant PepsiCo reported fourth-quarter earnings with total revenue rising slightly to $19.53bn, topping analysts’ average expectation of $19.39bn, according to Thomson Reuters.
It recorded a net loss of $710m, compared to a year-earlier profit of $1.40bn, reflecting a $2.5bn one-time charge related to new US tax laws.
Organic sales at its Frito-Lay division rose 5% in the quarter ended December 30, buoyed by demand for salty snacks including Cheetos and Lay‘s.
The company said as a reflection of its confidence in the growth prospects for the business, it expects to deliver 9% growth in core constant currency earnings per share in 2018 and announced a 15% increase in its annualised dividend per share beginning with the June 2018 payment, representing a 46th consecutive annual increase.
Chairman and CEO Indra Nooyi said: “We are pleased with our performance for the fourth quarter and full year 2017. We met or exceeded most of the financial goals we set out at the beginning of the year. We delivered these results in the midst of a dynamic retail environment and rapidly shifting consumer landscape.
“The provisions of recently enacted tax legislation are expected to result in lower income taxes in 2018 for our operations in the United States, our largest market. We expect the benefits of the TCJ Act will enable us to further strengthen our business by enhancing the skills of our front line associates to ready them for the future; adding new digital and ecommerce capabilities to become more competitive; accelerating capital investments to add manufacturing capacity and make our operations more efficient; and enhancing cash returns to our shareholders over time. "