PepsiCo Reports Third-Quarter 2021 Results; Raises Full-Year Guidance

PepsiCo, Inc. (NASDAQ: PEP) today reported results for the third quarter of 2021.

Ramon Laguarta Chairman and CEO of PepciCo:
 

"We are pleased with our results for the third quarter as we delivered very strong net revenue growth while carefully navigating a dynamic and volatile supply chain and cost environment."

"Given our year-to-date performance, we now expect our full-year organic revenue to increase approximately 8 percent and core constant currency earnings per share to increase at least 11 percent."

"Our strong year-to-date results demonstrate that the investments we have made towards becoming a Faster, Stronger, and Better company are working. To further complement and enhance our strategic framework, we recently introduced PepsiCo Positive (pep+), a fundamental end-to-end transformation of what we do and how we do it to create growth and shared value with sustainability and human capital at the center."

"We are extremely pleased with the progress we are making on our strategic agenda, and remain committed to the investments in our people, supply chain, plants, go-to-market systems, and digitization initiatives to build competitive advantages and win in the marketplace."

Guidance and Outlook

The Company provides guidance on a non-GAAP basis as they cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and commodity mark-to-market net impacts.

For the fiscal year 2021, the Company now expects to deliver approximately 8 percent organic revenue growth (versus their previous guidance of 6 percent), at least 11 percent core constant currency EPS growth (versus their previous guidance of 11 percent), and at least 12 percent core EPS growth (versus their previous guidance of 12 percent).

Consistent with its previous guidance for 2021, the Company continues to expect:

• A core annual effective tax rate of approximately 21 percent;
• Total cash returns to shareholders of approximately USD 5.9 billion, comprised of dividends of approximately USD 5.8 billion and share repurchases of USD 106 million. They completed their share repurchase activity and do not expect to repurchase any additional shares for the balance of 2021.

In addition, the Company continues to expect a 1-percentage-point foreign exchange translation tailwind to benefit reported net revenue and core EPS growth based on current market consensus rates. This assumption and the guidance above imply 2021 core EPS of at least USD 6.20, compared to 2020 core EPS of USD 5.52.