PepsiCo announced on Friday its quarterly earnings and earnings that met analysts' expectations, but said they expected lower earnings in 2019 amid currency effects, rising tax rates, and increased investment in advertising. : First Child "/>
As the rival of Coca-Cola, the global giant of snacks and drinks faces currency pressure and is also preparing for the effect of the effective tax rate expected to grow to 21 % of 18.8%, as well as rising advertising and marketing costs.
The Food and Drink giant predicts it will earn $ 5.50 per share in 2019, compared to earnings per share of 2018. for $ 5.66 for the fourth quarter, PepsiCo earned $ 1
This is what the company reported compared to what Wall Street was expecting , based on a study by analysts at Refinitiv: $ 1.49 vs. expected $ 1.49
competition. These investments helped bring back their beverage business to North America. Return continued throughout this quarter as the unit reported a 2% growth.
At the same time, the snack business remained strong, providing a 4% growth in organic earnings in North America for the fourth quarter. PepsiCo announced on Friday that it continues to add more nutritious snack options, such as Off the Eaten Path and Sunchips. Last year she acquired Bare Snacks, which makes fruit and vegetable snacks.
Friday will also continue to seek annual savings of at least $ 1 billion by 2023. He will achieve these savings through automation, changing market systems, and simplifying the organization. The program is a continuation of a previous savings plan, which was expected to end after 2019.
In December, PepsiCo completed the acquisition of SodaStream, a home-made sparkling drink, worth $ 3.2 billion. With the exception of the SodaStream deal, PepsiCo with former CEO Indra Nooyi was far from making deals worth more than $ 200 million in the past few years as CEO. Chief Executive Officer Ramon Laguartra took the lead in October. The company also announced on Friday that it is increasing its dividend by 3%, to 3.82 dollars from 3.71 dollars, starting in June.
Correction: Pepsi's 2019 plans include advertising and marketing. Previous version was wrong in nature.