The Dorito and Lays maker posted revenue to the tune of $19.53 billion to cap off 2017 – a slight rise from the previous quarter. Analysts expected a lower revenue level of $19.39 billion. Even with the outperformance of the consensus, revenue was considered flat by the market.
The net loss recorded by the snacks and beverage company was of $710 million, which translates to 50 cents per share. During 2016, over the same period, the company reported a profit of $1.40 billion – 97 cents per share. This showcases a $2.5 billion one-time variation year-on-year, linked to the new U.S. tax laws promulgated.
The results have prompted the company to take corrective action. It has announced that it will cut some jobs over 2018, and will also be handing out some bonuses of up to $1,000 to employees.
The layoffs will affect roughly 1% of its 110,000-strong workforce – specifically on the corporate level.
The bonuses will go to employees in the manufacturing and delivery areas of the company.
Sales by the company slipped in North America, including its Frito-Lay unit, the soda and water unit that makes Tropicana and Mountain Dew, and oatmeal unit Quaker. Sales in Africa, Latin America and Europe rose and rallied overall revenue.
The company expects 2018 adjusted earnings of $5.70 per share. Analysts predict $5.67 per share.
Shares of PepsiCo Inc. lost in Tuesday trading after the fiscal report went live.