PepsiCo profits up across all segments

US snack and soft drinks company PepsiCo completed 2004 with strong fourth-quarter performance across all its business segments. Each of the Company s operating Divisions posted solid top line growth, and total Division operating profits increased by 10%. Reported EPS increased by 10% in the quarter to $0.58; excluding non- recurring tax benefits and restructuring charges, EPS grew 12%. Revenues for the fourth quarter grew 9% to US$8.8bn. For the full year, division revenue increased 8% to US$29.3bn, largely driven by volume gains, positive mix and favourable foreign exchange.
In the business segment Frito-Lay North America, volume growth of 3% in full year 2004 was driven by new product introductions, such as Lay s Stax and a 24-count multi-sack, and mid-single-digit growth of Lay s, Tostitos and Cheetos. Net revenue growth was driven by the volume gains, net pricing, and positive mix, and operating profit margins increased due to positive price realization.
Furthermore, snacks volume growth in Latin America was driven by mid single-digit growth at Gamesa and Sabritas, and strong double-digit growth in Venezuela. Growth in Europe, Mideast and Africa was led by double-digit growth in Turkey and Egypt. Strong double-digit growth in India and China led the Asia Pacific region s growth. In Latin America, high single-digit beverage volume growth was led by Mexico, Venezuela, Argentina and Brazil. In Europe, Mideast and Africa double-digit growth was led by strong performance throughout the Mideast and in Russia, and volume in Germany rebounded from the impact of the bottle deposit legislation imposed in 2003. China and India led the double-digit growth in the Asia Pacific region.