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PepsiCo’s revenues rose 5 per cent in its fourth quarter thanks in part to an additional week to its fiscal year and as strong sales at home offset persistent currency headwinds.
The maker of Mountain Dew and Sabra Hummus said sales rose to $19.5bn, matching Wall Street expectations.
Net income slid 18 per cent to $1.4bn. Adjusted for extraordinary items and the impact of the strong dollar, earnings per share increased 15 per cent to $1.20. That beat analysts’ estimates for a 9.2 per cent rise to $1.16.
Like rival Coca-Cola, PepsiCo has benefited from steady demand at home, where it has been investing in reformulating products and developing new ones as consumers increasingly opt for healthier snacks, using gains from a broad cost-cutting programme to help pay for it.
But the company faced headwinds in key emerging market economies, such as Argentina where the year-old government has been battling to restore stability and reduce inflation. India, another important market, also faced strains amid the government’s decision to scrap more than four-fifths of its cash in circulation – a development that has also affected rivals such as Mondelez.
The New York-based company said it expects adjusted earnings of $5.09 this year, short of the $5.15 that analysts expected.
“Looking ahead to 2017, we expect solid financial performance despite anticipated continued macroeconomic challenges,” said chief executive Indra Nooyi.
The shares were little changed in pre-market trading.