Purchase-based PepsiCo today released its 2021 financial report showing a 13% increase in revenues over the year 2020 and an 11% increase in the operating profit. PepsiCo took in $79.47 billion in 2021 compared with $70.37 billion in 2020. Its operating profit was $11.1 billion, compared with $10.08 billion in 2020. PepsiCo said its operations outside of the U. S. generated 44% of the consolidated net revenue in 2021.
“Our full year net revenue growth meaningfully accelerated in 2021 versus the previous year and this gives us added confidence that the investments we”™ve made in our people, brands, innovation, supply chain, go-to-market systems and digitization initiatives are working,” said Ramon Laguarta, PepsiCo”™s chairman and CEO. “Moving forward, we remain committed to building advantaged capabilities that can help us win in the marketplace and become an even faster, even stronger and even better organization.”
The company reported that its Frito-Lay North America division had a 10% increase in profits, primarily reflecting net revenue growth and productivity savings.
The Quaker Foods North America operating profit grew 8% despite operating cost increases, including incremental transportation costs, higher commodity costs and higher advertising and marketing expenses.
PepsiCo Beverages North America”™s operating profit fell 10%, primarily reflecting certain operating cost increases, including \transportation, cost of commodities and higher advertising and marketing expenses.
PepsiCo noted that in the first quarter of 2022, it completed the previously announced sale of Tropicana, Naked and some other juice brands to PAI Partners for approximately $3.5 billion in cash and a 39% noncontrolling interest in a newly formed joint venture that will operate across North America and Europe.
The juice businesses had delivered approximately $3 billion in net revenue in 2021. PepsiCo reported that in the U.S. it acts as the exclusive distributor for the new joint venture”™s portfolio of brands in some segments of the marketplace.
The company”™s annual report filed with the U.S. Securities and Exchange Commission said, in part, “As a global company with deep local ties, we faced many of the same challenges in 2021 as our consumers, customers, and competitors across the world, including the second year of the Covid-19 pandemic; a worsening climate crisis; supply chain disruptions; inflationary pressures; shifting consumer preferences and behaviors; a highly competitive operating environment; a rapidly changing retail landscape, including the growth in e-commerce; continued macroeconomic and political volatility; and an evolving regulatory landscape.”
PepsiCo also included a cautionary statement about lingering effects as the recovery from Covid takes place.
“Public concern regarding the risk of contracting Covid-19 has impacted and may continue to impact demand from consumers, including due to consumers not leaving their homes or leaving their homes less often than they did prior to the start of the pandemic or otherwise shopping for and consuming food and beverage products in a different manner than they historically have or because some of our consumers have lower discretionary income due to unemployment or reduced or limited work as a result of measures taken in response to the pandemic,” PepsiCo said.
