PepsiCo Inc (PEP) Q4 2024 Earnings Report

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PepsiCo Inc

PEP

$145.02 -1.29%

Exchange: NASDAQ | Sector: Consumer Defensive | Industry: Beverages NonAlcoholic

Q4 2024

Published: Feb 4, 2025

Earnings Highlights

Revenue of $27.78B down 0.2% year-over-year
EPS of $1.11 increased by 16.8% from previous year
Gross margin of 52.6%
Net income of 1.52B
""We continue to be cautious, but given our plans and projections, we expect to stabilize and grow in our North America business as 2025 progresses" - Ramon Laguarta." - Ramon Laguarta

PEP

PepsiCo Inc

Period Q4 2024

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

Executive Summary

In Q4 2024, PepsiCo Inc (PEP) reported total revenue of $27.78 billion, reflecting a 0.24% decline year-over-year but a remarkable 19.15% increase quarter-over-quarter, indicating a strong recovery following a challenging year. The company’s net income saw a notable 16.97% increase year-over-year to $1.52 billion, demonstrating enhanced profitability despite competitive market pressures. Management emphasized a strategic reinvestment into key segments, notably from non-operating gains, aimed at revitalizing volume growth, particularly in the Frito-Lay division. The commitment to innovation and addressing evolving consumer preferences positions PepsiCo favorably for continued growth into 2025 and beyond.

Key Performance Indicators

Revenue

Decreasing

27.78B

QoQ: 19.15% | YoY: -0.24%

Gross Profit

Decreasing

14.60B

52.56% margin

QoQ: 13.00% | YoY: -1.02%

Operating Income

Increasing

2.25B

QoQ: -41.89% | YoY: 33.69%

Net Income

Increasing

1.52B

QoQ: -48.02% | YoY: 16.97%

EPS

Increasing

1.11

QoQ: -47.89% | YoY: 16.84%

Revenue Trend

Margin Analysis

Financial Highlights

Revenue Analysis:
- Total Revenue: $27.78 billion (YoY Change: -0.24%, QoQ Change: +19.15%);
- Gross Profit: $14.60 billion with a gross profit margin of 52.56% (YoY Change: -1.02%, QoQ Change: +13.0%);
- Operating Income: Increased by 33.69% YoY to $2.25 billion, with an operating margin of 8.10%.
Profitability Ratios:
- Net Income: $1.52 billion (YoY Change: +16.97%, QoQ Change: -48.02%);
- Earnings Per Share (EPS): $1.11, reflecting a 16.84% growth YoY but a decline of 47.89% QoQ, showcasing quarterly volatility in earnings.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	27.78B	-0.24%	19.15%
Gross Profit	14.60B	-1.02%	13.00%
Operating Income	2.25B	33.69%	-41.89%
Net Income	1.52B	16.97%	-48.02%
EPS	1.11	16.84%	-47.89%

Key Financial Ratios

Gross Profit Margin

Good

52.60%

Gross profit margin is healthy and competitive within industry standards

Operating Profit Margin

Fair

8.10%

Operating margin is moderate, room for improvement in cost management

Net Profit Margin

Fair

5.48%

Net profit margin is moderate, room for improvement in cost management

Return on Assets

Weak

1.53%

Return on assets suggests inefficient capital allocation

Return on Equity

Fair

8.44%

Return on equity is acceptable but below top-tier companies

Current Ratio

Concern

0.82

Current ratio below safe levels, potential liquidity risk

Debt to Equity

High Risk

2.49

Debt-to-equity indicates high leverage and elevated financial risk

P/E Ratio

Growth

34.46x

Elevated P/E suggests growth expectations or premium valuation

Price to Book

High Premium

11.64x

Very high premium suggests asset-light business model or lofty expectations

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q4 2024	27,784.00	1.11	-0.2%	View
Q3 2024	23,319.00	2.13	-0.6%	View
Q2 2024	22,501.00	2.23	+0.8%	View
Q1 2024	18,250.00	1.48	+2.3%	View
Q4 2023	27,850.00	0.94	-0.5%	View

PepsiCo Inc (PEP) Q4 2024 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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