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PEPSICO NET INCOME JUMPS 18 PERCENT

 PEPSICO NET INCOME JUMPS 18 PERCENT
 PURCHASE, N.Y., April 28 /PRNewswire/ -- In the first quarter of


1992, PepsiCo Inc.'s (NYSE: PEP) sales rose 11 percent to $4.6 billion, net income advanced 18 percent to $241.5 million and earnings per share rose 15 percent to 30 cents per share, the company announced today.
 Wayne Calloway, chairman and chief executive officer of PepsiCo, said, "This quarter marks a strong start for PepsiCo in 1992. Snack foods, in particular, showed a marked improvement and our combined international businesses continued to be a major factor with a 30 percent gain in profits. These results should give us the momentum to reach the annual level of profit growth we've historically delivered."
 Snack Foods
 Worldwide snack food operating profits jumped 17 percent to $205.1 million on a sales increase of six percent to $1.3 billion.
 Domestic profits rose a solid seven percent to $142.1 million on a sales increase of three percent to $836.3 million. The profit increase reflects strong volume growth and lower administrative expense resulting from last year's restructuring. These positive factors were somewhat moderated by unfavorable package mix.
 Domestic pound volume increased by five percent following a very strong nine percent increase in the first quarter of 1991. The five percent advance was driven by strong gains in Lay's and Ruffles as well as the continued success of Tostitos and Sunchips.
 International profits grew a very strong 49 percent to $63.0 million on a sales increase of 14 percent to $461.2 million. The sales increase was largely driven by acquisitions in Poland and Australia as well as pricing in several countries. The profit increase primarily reflects strong gains in Mexico and the U.K. Reflecting very strong volume growth in Mexico last year, international kilo growth in snack chips excluding acquisitions was flat in the quarter.
 Soft Drinks
 Worldwide soft drink sales rose 10 percent to $1.5 billion, and operating profits declined three percent to $156.9 million.
 Domestic soft drinks had very solid operating performance in the quarter. The combination of acquisitions, three percent volume growth and positive pricing led to an eight percent increase in sales to $1.1 billion. Profits grew more slowly at one percent reaching $145.3 million. The lower profit growth rate primarily resulted from an increase in operating expenses and a difficult comparison with 1991, which included an installment gain from a prior year sale of a bottling operation.
 The positive price impact in the U.S. for the quarter resulted from higher concentrate and fountain pricing. Pricing in the bottling business was basically flat.
 The three percent increase in domestic volume as measured by bottler case sales reflected strength in the Mountain Dew brands and in brand Pepsi and growth across all major channels of distribution. These volume numbers include the months of January, February and March. Comparisons to 1991 were somewhat depressed by the fact that Easter falls in the second quarter this year but fell in the first quarter last year.
 International soft drink bottler case sales grew a very strong ten percent. This was driven by double digit growth in Latin America and Asia as well as solid growth in Europe.
 Sales in international soft drinks advanced 14 percent in the quarter to $393.2 million reflecting acquisitions and pricing as well as the volume growth. Profits decreased 34 percent to $11.6 million due primarily to a decline in bottling results in Germany and in Canada.
 Restaurants
 Worldwide restaurant earnings rose 12 percent to $134.0 million on a 17 percent sales increase to $1.7 billion. These results reflect excellent international growth as well as good performance by the domestic Pizza Hut and Taco Bell businesses.
 Pizza Hut - Profits at Pizza Hut grew 14 percent to $72.5 million on a sales increase of 10 percent to $792.1 million with a solid performance in the U.S. and strong international results.
 The domestic advance was led by strong delivery results reflecting a lower level of price discounts and additional units partially offset by higher food costs.
 International growth reflected particularly strong performance in Canada and Australia.
 Same store sales for domestic company owned units grew one percent in the quarter driven by solid growth in delivery offset by a decline in traditional restaurants.
 KFC - Operating profits advanced 15 percent to $28.3 million at KFC on a sales increase of 26 percent to $464.8 million. Worldwide sales advanced strongly primarily as a result of additional units, most of which were acquired from franchisees. Profits advanced due to strong growth in the international business driven by particularly good results in Australia and Mexico.
 Domestic profits were own reflecting a two percent decline in same store sales for company owned restaurants and higher operating costs. Operating costs continued to be higher because the anticipated overhead reductions covered in last year's fourth quarter charge were not planned to take place until late in the first quarter. These negative factors were somewhat offset by the positive contributions of additional units and a lower level of price discounting. Despite the domestic profit decline, this performance was a significant improvement over the fourth quarter of 1991.
 Taco Bell - Operating profits increased six percent to $33.2 million on a sales increase of 20 percent to $485.4 million. This reflects very strong performance because of the particularly difficult comparison with last year's first quarter when profit doubled. The 1992 growth was the result of solid volume increases, additional units and lower administrative expenses offset by higher food and labor costs. Same store sales for domestic company owned restaurants advanced five percent in the quarter.
 Said Calloway, "Our first quarter restaurant performance sets us up for our sixth straight year of double digit sales and profit growth in the segment. These results are some of the most consistent in the industry and certainly demonstrate far better than words the potential in this business if you listen to your customers and change to meet their needs."
 PEPSICO, INC. AND SUBSIDIARIES
 Condensed Consolidated Statement of Income
 (in millions except per share amounts, unaudited)
 12 Weeks Ended Pct.
 3/21/92 3/23/91 Change
 Net Sales $4,576.7 $4,117.0 11
 Costs and Expenses:
 Cost of Sales 2,195.9 1,963.9 12
 Selling, general and
 administrative expenses 1,852.9 1,680.8 10
 Amortization of goodwill
 and other intangibles 51.4 45.4 13
 Interest expense 136.7 152.7 (10)
 Interest income (28.8) (41.8) (31)
 4,208.1 3,801.0 11
 Income Before Income Taxes 368.6 316.0 17
 Provision for Income Taxes (A) 127.1 110.6 15
 Net Income $ 241.5 $ 205.4 18
 Net Income Per Share $ 0.30 $ 0.26 15
 Average shares outstanding 802.6 801.9 --
 (A) The effective tax rates were 34.5 percent in 1992 and 35.0 percent in 1991.
 PEPSICO, INC. AND SUBSIDIARIES
 Supplemental Schedule of Net Sales and Operating Profits
 12 Weeks Ended March 21, 1992 and March 23, 1991
 (in millions, unaudited)
 Net Sales Operating Profits
 12 Weeks 12 Weeks 12 Weeks 12 Weeks
 Ended Ended Pct. Ended Ended Pct.
 3/21/92 3/23/91 Change 3/21/92 3/23/91 Change
 Soft Drinks
 -Dom $1,143.7 $1,057.3 8 $ 145.3 $ 143.4 1
 -Int'l 393.2 344.6 14 11.6 17.7 (34)
 1,536.9 1,401.9 10 156.9 161.1 (3)
 Snack Foods
 -Dom $ 836.3 $ 814.6 3 $ 142.1 $ 133.0 7
 -Int'l 461.2 405.8 14 63.0 42.4 49
 1,297.5 1,220.4 6 205.1 175.4 17
 Restaurants
 -Dom $1,510.6 $1,311.1 15 $ 105.1 $ 99.8 5
 -Int'l 231.7 183.6 26 28.9 19.6 47
 1,742.3 1,494.7 17 134.0 119.4 12
 Total
 -Dom $3,490.6 $3,183.0 10 $ 392.5 $ 376.2 4
 -Int'l 1,086.1 934.0 16 103.5 79.7 30
 $4,576.7 $4,117.0 11 496.0 455.9 9
 Interest & Other Corporate
 Expenses, net (127.4) (139.9) (9)
 Income Before Income Taxes $ 368.6 $ 316.0 17
 Results by Restaurant Chain:
 Pizza Hut $ 792.1 $ 721.4 10 $ 72.5 $ 63.4 14
 Taco Bell 485.4 405.5 20 33.2 31.4 6
 KFC 464.8 367.8 26 28.3 24.6 15
 Total $1,742.3 $1,494.7 17 $ 134.0 $ 119.4 12
 PEPSICO, INC. AND SUBSIDIARIES
 Condensed Consolidated Balance Sheet
 (in millions)
 (Unaudited)
 3/21/92 12/28/91
 Assets
 Cash and cash equivalents $ 103.0 $ 186.7
 Short-term investments 1,977.3 1,849.3
 Other current assets 2,615.5 2,530.1
 Total Current Assets 4,695.8 4,566.1
 Investments in affiliates
 and other assets 1,988.0 1,681.9
 Property, plant and
 equipment, net 6,631.1 6,594.7
 Goodwill and other
 intangibles, net 5,849.6 5,932.4
 Total Assets $19,164.5 $18,775.1
 Liabilities and Shareholders' Equity
 Short-term borrowings $ 1,529.8 $ 228.2
 Other current liabilities 3,036.1 3,493.9
 Total Current Liabilities 4,565.9 3,722.1
 Long-term debt 7,347.0 7,806.2
 Other noncurrent liabilities 1,759.4 1,701.4
 Total Liabilities 13,672.3 13,229.7
 Shareholders' Equity 5,492.2 5,545.4
 Total Liabilities and
 Shareholders' Equity $19,164.5 $18,775.1
 -0- 4/28/92
 /CONTACT: Kenneth Ross, director of public relations of PepsiCo, 914-253-2725/
 (PEP) CO: PepsiCo, Inc. ST: New York IN: FOD SU: ERN


TS -- NY011 -- 3569 04/28/92 08:59 EDT
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Date:Apr 28, 1992
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