PepsiCo 2024 Annual Report Summary

Financial Highlights

• Net Revenue: $91.9 billion, with distribution across food (58%) and beverages (42%).
• Operating Profit: $12.9 billion, an 8% increase from 2023.
• Earnings per Share (EPS): Reported EPS $6.95, up 6% from $6.56 in 2023.
• Free Cash Flow: $7.5 billion, a 7% decrease from 2023.

Segment Performance

• Frito-Lay North America: Operating profit decreased by 7% due to increased operating costs.
• Quaker Foods North America: Operating profit decreased by 38% partly due to a product recall.
• PepsiCo Beverages North America: Operating profit decreased by 11% due to higher costs and volume decline.
• Latin America: Operating profit was stable; net revenue increased by 0.5%.
• Europe: Operating profit increased by 163% due to the absence of prior-year impairment charges.
• Africa, Middle East, and South Asia: Operating profit decreased by 1% amidst foreign exchange and commodity cost pressures.
• Asia Pacific, Australia, New Zealand, and China: Operating profit increased by 14% driven by volume growth.

Strategic Initiatives & Sustainability

• PEP+ (PepsiCo Positive): Focus on sustainability, including regenerative agriculture and increased use of recycled materials.
• Water & Packaging: Achieved 2025 water-use efficiency goals; expanded use of recycled plastic.
• Portfolio Expansion: Acquisition of Sabra and Siete Foods; launched new health-oriented products such as Gatorade Hydration Booster.

Challenges & Risks

• Commodity and Supply Chain Costs: Faced increased costs due to global disruptions and inflation.
• Climate Change Regulation: Potential for increased regulatory costs due to environmental laws.
• International Operations: Currency fluctuations and geopolitical tensions, notably in Russia and Ukraine.
• Taxation: New global minimum tax model may impact future tax liabilities.

Governance

• Board Leadership: Ramon L. Laguarta continues as Chairman & CEO.
• Executive Leadership: Recent acquisitions and business restructuring to enhance efficiency.

Additional Information

• Shareholder Returns: Total of $8.6 billion expected in 2025 through dividends and share buybacks.
• Stock Performance: PepsiCo stock performance compared favorably against industry indices.

This summary captures the primary points from PepsiCo's 2024 report, with a focus on financial performance, strategic initiatives, challenges, and governance. For detailed analysis, refer to the full annual report.