The company noted that sales from the Beverage unit in Nigeria increased by a low-single-digit, despite key disruptions to the supply chain.
The net revenue of the leading consumer goods behemoth increased by 4.8% to $70.37 billion, as it benefitted from its well-diversified portfolio, agile supply chain, a developed and well-organized trade channel with strong marketplace execution in the middle of the COVID-19 pandemic.
However, the increased net revenue was outstripped by the increase in selling, general and administrative expenses, this pressured PepsiCo’s operating profit and net income down to $7.12 billion in 2020, compared to 2019 when the company’s net income stood at $7.31 billion.
PepsiCo explained further that primarily the increase in selling, general and administrative costs reflect the impact of the higher distribution costs, charges taken as a result of the COVID-19 pandemic, the impact of the company’s acquisitions, and higher merger and integration charges.
What they are saying
The CEO of PepsiCo, Ramon Laguarta who commented on the company’s performance said:
“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. Our results were indicative of the strength and resilience of our highly dedicated employees, diversified portfolio, agile supply chain and go-to-market systems and strong marketplace execution even in the face of difficult COVID-19 challenges.
“Moving forward, we remain committed to supporting our employees, customers and communities. In addition, we will continue to focus on winning in the marketplace and investing to build competitive advantages that will enable us to become an even Faster, Stronger and Better organization.
“For 2021, we are planning for our organic revenue and core constant currency EPS growth to be consistent with our long-term objectives. We have also announced a 5 percent increase in our annualized dividend, starting with the June 2021 dividend payment.”
What you should know
- It is important to note that PepsiCo is the world’s largest beverage company, and the third largest consumer goods company in the world, with presence in more than 200 countries and territories around the world, including Nigeria.
- PepsiCo’s subsidiaries in Nigeria include Food Concepts Pioneer Ltd, PepsiCo Beverages International Limited and PepsiCo Foods Nigeria Limited Nigeria