PepsiCo (NASDAQ: PEP) reported strong fourth-quarter earnings On Thursday, thanks to high snack and drink demands amid the pandemic. After the company beat earnings expectations, shares rose to USD138.10 during premarket trading. Amid the positive results, Pepsi believes it will meet long-term financial goals for 2021.
The beverage and snack maker reported earnings of USD1.47 per share, compared to the expected USD1.46 a share. Revenue amounted to USD22.46 Billion, higher than analysts anticipated USD21.78 Billion.
“We ended the year on a strong note with our global beverage business having accelerated while our global snacks and food business remained resilient in the fourth quarter,” Chairman and CEO Ramon Laguarta said in a statement.
The company’s organic sales were up 5% within its Frito-Lay division, and rose 8% in Quaker Foods North America. Furthermore, Pepsi revealed a 5% increase in its annualized dividend to USD4.30 per share, up from USD4.09 a share.
“We assume that vaccination efforts will accelerate and that population mobility trends will gradually improve as consumers return to certain pre-pandemic behaviors by the second half of this year,” CEO Ramon Laguarta said, according to Reuters.
Pepsi expects mid-single-digit growth in organic revenue and high-single-digit growth for core earnings per share within 2021. It will also be increasing its dividend by 5% in June.
“For 2021, we are planning for our organic revenue and core constant currency EPS growth to be consistent with our long-term objectives,” Laguarta said in a statement.
The company announced a partnership with Beyond Meat to manufacture and sell plant-based snacks and beverages. According to executives, the deal is expected to be a small business for the company.