PepsiCo Inc. (PEP: Quote) posted a rise in its fourth-quarter net income attributable to the company to $1.41 billion or $0.89 per share from prior year's $1.36 billion or $0.85 per share.
On a non-GAAP basis, core earnings per share were $1.15, 9% higher than $1.05 a year earlier. On average, 14 analysts polled by Thomson Reuters expected earnings per share of $1.13 for the quarter. Analysts' estimates typically exclude one-time items.
Net revenue totaled $20.16 billion compared with $18.16 billion in the previous year, up by 11%. Eleven analysts estimated revenues of $19.91 billion for the quarter.
For 2012, the company targets mid-single-digit core constant currency net revenue growth, in-line with its long-term target. In addition, PepsiCo aims for high-single-digit core constant currency earnings per share growth for 2013 and beyond after a transition year in 2012, in which it expects core constant currency earnings per share to decrease 5%.
Separately, PepsiCo announced its plans to increase advertising and marketing support behind its global brands by $500 million - $600 million in 2012, with particular focus on North America; going forward, it expects to maintain or increase that rate of support as a percentage of revenues; as well as unveiled plans to increase returns to shareholders in the form of higher dividends and share repurchases in 2012.
Further, the company plans to implement a multi-year productivity program that is expected to generate $1.5 billion of incremental cost savings by 2014 via. optimization of operating practices and organization structure, including a reduction in force of around 8,700 employees, nearly 3 percent of global workforce.
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by RTT Staff Writer
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