PepsiCo Q4 operating profit surges 67%

PepsiCo has reported net revenue of $13.29bn for the fourth quarter of fiscal 2009, an increase of 4

Operating profit for the quarter was $2.03bn, up 67% compared to $1.22bn in the year ago quarter. Net income for the quarter increased 98% to $1.43bn compared to $726m in the same quarter previous year. For the fourth quarter, reported EPS was $0.9.

Net revenue for the full year 2009 was $43.23bn compared to $43.25bn the year before. Operating profit was $8.04bn, up 16% compared to $6.96bn previously. Net income was $5.98bn, an increase of 16% compared to $5.16bn in the prior year. For the full year, reported EPS grew 17% to $3.77 and core constant currency EPS increased 6%.

PepsiCo Americas Foods (PAF) grew net revenue 7% and core operating profit 8% for the full year 2009 and gained snacks share across the region. In the fourth quarter, PAF grew net revenue 4% and core operating profit 3%. For the full year, Frito-Lay North America (FLNA) volume increased 1%, net revenue grew 6% and core operating profit grew 7%. In the fourth quarter, volume was flat, reflecting the completion of the '20% More Free' promotion FLNA ran in the second and third quarters of the year.

Quaker Foods North America (QFNA) volume and net revenue were flat for the year, and core operating profit grew 3%. Latin America Foods (LAF) grew net revenue 10% and core operating profit 13%. PepsiCo International (PI) witnessed a 17% increase in core operating profit on an 11% increase in net revenue.

Indra Nooyi, chairman and CEO of PepsiCo, said: "In 2010, we are changing the rules of the game in North America beverages through the anticipated merger with our anchor bottlers coupled with the continuing activities to refresh our core brands. We are extending our global leadership in snacks by continuing to innovate with new products and platforms, and by accelerating our growth in developing markets."

For fiscal 2010, the company is targeting an 11% to 13% growth rate for core constant currency EPS off of its fiscal 2009 core EPS of $3.71.