PepsiCo enjoyed a promising financial performance in 2023, reporting 9.5% organic revenue growth for the year and 4.5% revenue growth in Q4, as announced on Friday.
The company’s net revenue reached $91.5 billion for the fiscal year and $27.9 billion in Q4, topping off a record year in terms of profitability.
“We are pleased with our results for 2023, as we successfully navigated another year of elevated levels of inflation, macroeconomic volatility, geopolitical tensions and international conflicts,” said PepsiCo’s chairman and CEO, Ramon Laguarta.
PepsiCo’s success extended across various segments, with Frito-Lay North America achieving 9% organic revenue growth for the year, and PepsiCo Beverages North America delivering a 7% organic revenue growth. Internationally, the company’s business saw 12% organic revenue growth, representing nearly 40% of the total net revenue.
That strong performance reflects continued investments since 2019 in initiatives like modernization.
Anticipating consumer preferences to return to pre-pandemic norms with a focus on convenience and value, PepsiCo forecasts at least 4% organic revenue growth in 2024.
Laguarta expressed confidence that PepsiCo’s business will continue its solid performance in the months ahead due to multiple factors. For starters, he expects consumer confidence to improve as the year rolls on. Company executives also expect commodity inflation to moderate from what was experienced in 2023.
“Category growth rates are normalizing as consumer behaviors largely revert to pre-pandemic norms and net revenue realization moderates,” the CEO said, “as inflationary pressures are expected to abate.
“Now (the) supply chain is in a very good place compared to what it was a couple years ago, or even from last year, and we can rely on the tools that we’re very good at – which is brand building, innovation, execution, distributed increases, strong commercial programs with our partners. And that’s where we will grow (and) drive the growth of our top line.”
