PepsiCo Inc (NASDAQ:PEP) stock rose 0.66% (As on February 5, 11:22:30 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 24. Revenues continued to be affected by weak category trends in the North America convenient food business, ongoing recall-related issues at QFNA and business disruptions caused by escalating geopolitical tensions in some international markets. The unit volume was down 1% each for the convenient food business and the beverage business. Foreign currency impacted revenues by 2%. On an organic basis, revenues grew 2.1% year over year. The variance mainly resulted from a soft QFNA performance, which was impacted by certain product recalls and subdued category demand. The company’s consolidated organic volume was down 1%, while effective net pricing improved 3% in the fourth quarter. On a consolidated basis, the reported gross profit declined 1% year over year to $14.6 billion. The core gross profit rose 0.2% year over year to $14.9 million. The reported gross margin declined 41 bps, whereas the core gross margin expanded by 23 bps. The company reported an operating income of $2.3 billion, which rose 33.7% year over year. The core operating income grew 8.7% year over year to $3.2 billion. The core constant-currency operating income improved 8% year over year.

Moreover, Revenues on a reported basis improved 6% year over year in Europe, 5% at AMESA, and 2% at the APAC segments, while revenues were flat in PBNA. However, reported revenues declined 2% each at FLNA and the QFNA segments, and 7% in Latin America. PEP’s organic revenues improved across most of the operating segments, except for FLNA and QFNA. Organic revenues rose 4% for Latin America, 7% for Europe, 14% for AMESA and 1% for the APAC segment.

PEP in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.96, beating the analysts’ estimates for the adjusted earnings per share of $1.95, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 0.2 percent to $27.8 million in the fourth quarter of FY 24, slightly missing the analysts’ estimates for revenue of $27.9 million. PEP ended 2024 with cash and cash equivalents of $8.5 billion, long-term debt of $37.2 billion, and shareholders’ equity (excluding non-controlling interest) of $18 billion. Net cash provided in operating activities was $12.5 billion as of Dec. 28, 2024, compared with $13.4 billion as of Dec. 30, 2023.