PepsiCo Americas Foods profit rises 8% in '09
February 11, 2010
by Eric Schroeder
PURCHASE, N.Y. — Operating profit and sales posted strong gains in fiscal 2009 within the PepsiCo Americas Foods unit of PepsiCo, Inc. The division — which comprises Frito-Lay North America, Quaker Food North America and Latin America Foods — had an operating profit of $4,790 million in the year ended Dec. 26, 2009, up 8% from $4,438 million in fiscal 2008. Sales rose 2.5% to $20,811 million from $20,304 million.
The biggest mover in the division was F.L.N.A., which had operating profit of $3,258 million in fiscal 2009, up 10% from $2,959 million in fiscal 2008. Revenue in the segment was $13,224 million, up 6% from $12,507 million a year ago. For the fourth quarter ended Dec. 26, operating income was $956 million, up 19% from $806 million, while sales rose 3% to $3,888 million.
During the year, PepsiCo said the F.L.N.A. unit was able to effectively offset commodity inflation and investments in value initiatives with strong revenue management and productivity initiatives.
“In 2010, F.L.N.A. will drive top-line growth with strong innovations on its core platforms, targeted value initiatives, and increased emphasis on delivering more nutritious snacking options to consumers, including adding fiber to its SunChips line and whole grains to Tostitos,” the company said.
Q.F.N.A. operating profit in the year was $628 million, up 8% from $582 million in fiscal 2008. Sales fell 1% to $1,884 million from $1,902 million. For the fourth quarter, operating profit was $190 million, up 18% from $160 million, while sales were $585 million, down 4% from $610 million.
Companywide, PepsiCo net income in fiscal 2009 totaled $5,946 million, equal to $3.77 per share on the common stock, up 16% from $5,142 million, or $3.21 per share, in fiscal 2008. Net revenue was $43,232 million, virtually unchanged from $43,251 million. For the fourth quarter, earnings rose 99% to $1,434 million, or 90c per share, on a 4.5% gain in sales to $13,297 million.