PEPSICO INC SEC 10-Q Report
PepsiCo Inc., a global leader in the food and beverage industry, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights for the 12 weeks ended June 14, 2025. Despite facing challenges such as increased costs and unfavorable foreign exchange rates, PepsiCo continues to demonstrate resilience through strategic acquisitions and a focus on operational efficiency.
Financial Highlights
Net Revenue: PepsiCo reported net revenue of $22,726 million for the 12 weeks ended June 14, 2025, reflecting a slight increase from $22,501 million in the same period of 2024. This indicates stable sales performance.
Gross Profit: The company's gross profit stood at $12,422 million, compared to $12,582 million in the same period of 2024, showing a slight decrease due to increased cost of sales.
Operating Profit: Operating profit was $1,789 million, down from $4,048 million in the same period of 2024, primarily due to impairment charges.
Net Income: Net income for the period was $1,279 million, a significant decrease from $3,094 million in the same period of 2024, largely impacted by the impairment of intangible assets.
Net Income Attributable to PepsiCo per Common Share - Basic: Basic earnings per share were $0.92, compared to $2.24 in the same period of 2024, reflecting the impact of lower net income.
Net Income Attributable to PepsiCo per Common Share - Diluted: Diluted earnings per share were $0.92, compared to $2.23 in the same period of 2024, consistent with the basic earnings per share.
Business Highlights
Revenue Segments: PepsiCo is organized into six reportable segments: PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. Each segment contributes to the company's overall revenue with distinct product lines and geographical focus.
Geographical Performance: In the 24 weeks ended June 14, 2025, operations outside of the United States generated 41% of PepsiCo's consolidated net revenue. Key markets include Mexico, Russia, Canada, China, the United Kingdom, Brazil, and South Africa, which together comprise approximately 24% of consolidated net revenue. Unfavorable foreign exchange rates, particularly in the Mexican peso, Egyptian pound, and Brazilian real, have impacted revenue performance.
Sales Units: The company reported segment-specific cost of sales and selling, general, and administrative expenses, indicating operational efficiency and cost management across different regions and product lines.
New Product Launches: PepsiCo acquired Siete, a Mexican-American foods business, and poppi, a prebiotic soda business, indicating strategic expansion into new product categories and markets.
Future Outlook: PepsiCo continues to monitor the economic, operating, and political environment in its markets, with a focus on mitigating unfavorable impacts from foreign exchange fluctuations, geopolitical conditions, and regulatory changes. The company is also assessing the impact of the One Big Beautiful Bill (OBBB) Act and OECD global minimum tax on its operations.
Risks and Challenges: The company faces risks from commodity price fluctuations, geopolitical conditions, and regulatory changes, which could impact supply chain costs and operational efficiency. PepsiCo is actively managing these risks through fixed-price contracts, purchase orders, and derivative instruments.
SEC Filing: PEPSICO INC [ PEP ] - 10-Q - Jul. 16, 2025