What Is PepsiCo’s Revenue And EBITDA Breakdown?
PepsiCo‘s (NYSE:PEP) Frito-Lay North America division contributes the most to the company’s revenue, and is also the most profitable division, according to our estimates. FLNA’s operating margin is more than double that of the other divisions, and it also benefits from America’s snacking habit, which is why the North American savory snacks market is growing at 3-4% annually. In addition, this division is also somewhat resistant to the unfavorable impact of negative currency translations.
In addition, growth in the water portfolio, sports drinks, and ready-to-drink teas offset the decline in the carbonated soft drinks (CSD) category. Although CSDs still form a majority of PepsiCo’s drink volumes, health and wellness concerns have dragged down the volume sales in this category. To offset this decline, PepsiCo has emphasized sales of its non-carbonated portfolio, including the sports drink Gatorade, and Lipton ready-to-drink teas.
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Have more questions on PepsiCo? See the links below.
- The Year That Was: PepsiCo
- What’s Driving PepsiCo’s Growth This Year?
- PepsiCo Raises Its EPS Guidance For The Second Straight Quarter
- PepsiCo Raises Profit Guidance For The Third Consecutive Year
- PepsiCo Earnings Review: Macroeconomic Headwinds Bring Down An Otherwise Strong Core Performance
- Where Will PepsiCo’s Revenue And EBITDA Growth Come From Over The Next Three Years?
- \Why Snacks Are More Valuable Than Carbonated Drinks For PepsiCo
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