PepsiCo reports strong sales and operating results for 2006

PepsiCo Inc reported continued strong performance in the fourth quarter of 2006. Reported net revenue increased 3% in the quarter. Excluding the impact of an extra reporting week in the prior year, net revenue increased over 7%.
Earnings of $1.06 per share grew 63% versus $0.65 per share reported in the fourth quarter of 2005. Excluding the impacts of the extra reporting week in 2005 and previously announced tax items and restructuring actions in 2006 and 2005, the Company generated earnings of $0.72 per share in 2006, an increase of 11%.


PepsiCo President and CEO Indra Nooyi said, "We are pleased with our performance for the quarter and the full year. Our international business performed particularly well, delivering double-digit revenue and operating profit growth, and Frito-Lay North America delivered robust sales and profit results.We also made good progress on our key strategic initiatives: providing greater choices to consumers in the area of healthier snacks and beverages; strengthening our international presence; and advancing our business process transformation project, including our SAP systems implementation."


For the full year, reported net revenue was up 8% and, excluding the impact of the extra reporting week in 2005, net revenue increased more than 9%. Earnings per share of $3.34 for the full year 2006 included tax benefits of $0.37 per share, related principally to the Internal Revenue Service s examination of prior years tax returns, and a charge of $0.03 per share related to Frito-Lay North America s manufacturing network consolidation.


Frito-Lay North America had strong revenue and profit performance. Net revenue increased 7% in the fourth quarter, driven by broad-based volume growth and effective net pricing. Net revenue growth was led by gains in trademark Doritos, Sunchips, Tostitos, Lay s and Cheetos. Operating profit grew 8% benefiting principally from the net revenue gains. PepsiCo International posted strong gains in both snacks and beverages. Snack volume growth of 9% was led by mid-single-digit growth at Gamesa in Mexico and strong double-digit growth in Russia, Turkey and Egypt. Net revenue grew 16% driven by the broad-based volume gains and effective net pricing. Quaker Foods North America profits grew 5%. Volume declined slightly in the quarter, net revenue declined in line with volume.