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Highlights

  • PepsiCo raised its annualized dividend per share by 5%, marking 53 consecutive years of increases
  • The company’s FY24 saw a 0.4% increase in net sales and a 5.6% rise in net income
  • PepsiCo acquired Seite Foods for USD 1.2 billion to expand its nutritious product portfolio
  • For FY25, PepsiCo projects low-single-digit revenue growth and USD 8.6 billion in shareholder returns

PepsiCo, Inc. (NASDAQ:PEP) is a beverage and convenient food company with a market cap of around USD 198.29 billion. Its annual dividend yield stands at 3.75%.

PepsiCo recently revealed a 5% rise in its annualized dividend per share, boosting it from USD 5.42 to USD 5.69. This increase, effective with the June 2025 dividend, exhibits the firm’s 53rd consecutive year of dividend hikes.

PepsiCo aspires to improve waste management and plastic recycling. By 2030, the company plans to cut its use of virgin plastic by 50% and make sure that all of its packaging is either recyclable, compostable, biodegradable, or reusable.

FY24 Financial Update

For financial year 2024 (FY24), PepsiCo reported a slight increase in net sales, rising by 0.4% YoY to reach USD 91,854 million, driven by higher revenue from Europe and Asia. Net income also grew by 5.6% YoY to USD 9,578 million, benefiting from increased revenue and reduced cost of sales.

However, PepsiCo experienced a 7.0% YoY decrease in net operating cash inflows, which dropped to USD 12,507 million, primarily due to the unfavorable impact of changes in net working capital. Cash and cash equivalents also fell by 12.4% YoY, reaching USD 8,505 million, as cash outflows from investing and financing activities exceeded the inflows from operations.

Recent Business Update

As per an announcement dated January 17, 2025, PepsiCo has finalized its acquisition of Seite Foods for USD 1.2 billion. The acquisition is aimed at expanding its portfolio with a range of nutritious, simple products rooted in authentic Mexican-American flavors.

Company Outlook

For fiscal year 2025, PepsiCo expects a low-single-digit increase in organic revenue and mid-single-digit growth in core constant currency EPS on a non-GAAP basis. Total cash returns to shareholders is forecasted at USD 8.6 billion. This includes USD 7.6 billion in dividends and USD 1.0 billion in share repurchases. PepsiCo also projects a foreign exchange translation headwind of about 3 percentage points, which may slightly affect net revenue and core EPS growth.

Top 10 shareholders

PepsiCo’s top 10 shareholders collectively hold approximately 29.56% of the company’s total shares, reflecting a diverse ownership base. The largest shareholders are The Vanguard Group, Inc., with a 9.58% stake, and BlackRock Institutional Trust Company, N.A., owning 5.41% of the company.

Stock Information

The stock price of PEP has appreciated by around 1.19% in the past month whereas, it has declined by around 12.12% in the past three months. As of February 10, 2025, the stock closed at USD 144.35.

 Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 10, 2025. The reference data in this report has been partly sourced from EODHD/Others.