PepsiCo reported organic revenue growth of 4 percent for the fourth quarter of 2015 and 5 percent for the full year.
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Core earnings per share were $1.06 for the quarter and $4.57 for the year.
Q4 organic revenue grew 4 percent and reported net revenue declined 7 percent. Foreign exchange translation had an 8-percentage-point unfavorable impact on reported net revenue.
Core gross margin expanded 165 basis points and core operating margin decreased 20 basis points. Operating margin was negatively impacted by an 85 basis point increase in advertising and marketing expense as a percent of sales, partially offset by the implementation of effective revenue management strategies and previously announced productivity initiatives. Reported gross margin and operating margin both expanded 185 basis points.
PepsiCo Q4 core constant currency operating profit declined 2 percent. The impact of the deconsolidation of Venezuela negatively impacted fourth quarter operating profit performance by 2 percentage points.
Reported operating profit increased 10 percent and benefited from lower restructuring and impairment charges, pension-related settlements, including the lapping of a pension lump sum settlement charge, the mark-to-market net impact on commodity hedges, and the lapping of a re-measurement of certain net monetary assets of Venezuelan businesses, partially offset by unfavorable foreign exchange translation.
Company’s core effective tax rate was 22.5 percent, which compares to 25.5 percent in the prior-year quarter. The reported effective tax rate was 11.2 percent, below the prior year quarter of 25.6 percent, as a result of a non-cash tax benefit.
Core EPS was $1.06 and reported EPS was $1.17. Core EPS excludes a $0.16 per share non-cash tax benefit and a $0.01 per share benefit for a pension-related settlement, partially offset by $0.06 per share of restructuring and impairment charges related to previously announced productivity initiatives. ■