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The
company's shares were up marginally at $107.15 in premarket
trading on Wednesday.
PepsiCo and other processed-food companies are investing heavily
to develop products to meet the changing tastes of consumers,
who are increasingly seeking healthier options.
The company has said it now gets about 45 percent of its net
revenue from "guilt-free" products - beverages that have fewer
than 70 calories per 12 ounces and snacks that have lower
amounts of salt and saturated fat.
Net revenue in the North America beverages unit, the company's
biggest business, rose 8 percent in the fourth quarter ended
Dec. 31. Volume sales in the unit rose 1 percent.
The company also benefited from lower raw material costs as well
as productivity gains from multi-year cost-cutting plans, which
include closing plants, simplifying its organization and
management structures and investing in manufacturing automation.
However, net income attributable to PepsiCo fell to $1.40
billion, or 97 cents per share, in the quarter, from $1.72
billion, or $1.17 per share, a year earlier.
The fall in net income was due to pension-related settlements
and a debt redemption charge in the latest quarter and a tax
benefit in the year-ago period, the company said.
Excluding items, the company earned $1.20 per share.
The company's net revenue rose 5 percent to $19.52 billion.
Analysts on average had expected earnings of $1.16 per share on
revenue of $19.51 billion, according to Thomson Reuters I/B/E/S.
PepsiCo also forecast 2017 adjusted earnings of $5.09 per share,
missing the average analysts' estimate of $5.16.
The New York-based company said it expected organic revenue to
grow at least 3 percent, slower than the 3.7 percent growth in
2016.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
Sriraj Kalluvila
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