For 2022, the management expects organic sales growth of six percent, the company announced on Thursday. While that would be less than last year’s 9.5 percent, it’s still at the upper end of the long-term target range. The news was well received on the financial market. The stock rose 1.5 percent before the market.
On a reported basis, i.e. including the acquisition and sale of parts of the company and exchange rate effects, sales in 2021 increased by 12.9 percent to USD 79.5 billion (EUR 69.5 billion). As usual, business in North America made the largest contribution. Business in the Asia-Pacific region grew at an above-average rate.
However, the sales growth could not be fully converted into profit. Although PepsiCo was able to benefit from low expenses for the corona pandemic, higher costs, for example for raw materials and advertising, also weighed on the result. As a result, operating profit declined in the final quarter.
Over the past year as a whole, however, it rose by almost eleven percent to $ 11.2 billion at the group level. The bottom line is that the company earned $7.6 billion, around seven percent more than in the previous year.
The shareholders should also benefit from the generally good business. The annual dividend is expected to rise 7 percent to $4.60. In addition, share buybacks worth up to $10 billion are possible by the end of February 2026.
Pepsi shares fell 2.08 percent to $168.37 on the NYSE.
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