American soda (Pepsi), chips (Lays) and cereal (Quaker) manufacturer, PepsiCo, struggled in its past quarter because of the expensive dollar. Despite higher sales, total turnover dropped anyway.
18.6 billion dollar turnover
PepsiCo’s fourth quarter turnover dropped 7 % compared to last year, down to 18.6 billion dollars (16.4 billion euro). The expensive dollar is almost entirely to blame for the drop, because if exchange rate fluctuations are ignored, turnover would have grown 4 %.
Despite the turnover drop, operational profit grew 10 % to 2.2 billion dollars (1.94 billion euro), while net profit even grew nearly a third to 1.72 billion dollars (1.52 billion euro) thanks to a lucky break regarding pensions and taxes in the final quarter of 2015. However, it also had to deal with restructuring costs and write-offs.
2015 turnover dropped 5 % to 63.1 billion dollars (55.7 billion euro), despite an autonomous 5 % growth. Regardless of the difficult market conditions, CEO Indra Nooyi was satisfied with the company’s performance and expects a steady autonomous growth in 2016 as well.
PepsiCo Group is the world’s second largest food concern with 274,000 employees and activities across 200 countries.
