NEW YORK, Feb. 9 (Xinhua) -- U.S.-based food, snack and beverage supplier PepsiCo, Inc. on Thursday reported shrinkage of organic sales volume in the fourth quarter of 2022 due to price hikes and persistent inflation pressures.
PepsiCo's total organic sales volume in the globe fell 2 percent in the quarter ending Dec. 3, with 7 percent of decrease in Quaker Foods North America and 2 percent of dip in PepsiCo Beverages North America, respectively, according to a press release by the company.
The organic sales volume data excludes the impact of acquisitions, divestitures and other structural changes and the 53rd reporting week, according to PepsiCo.
PepsiCo's quarterly organic sales volume of convenient foods and beverages declined 4 percent and 8 percent in Europe, respectively. The organic sales volume of convenient foods in other areas also shrank in the period.
However, PepsiCo's net revenues grew 11 percent year on year to 27.99 billion U.S. dollars in the fourth quarter of 2022 thanks to effective net pricing. PepsiCo reported 1.67 U.S. dollars of adjusted earnings per share (EPS), 2 cents higher than forecast consensus.
The sales volume of PepsiCo perhaps will be down a little bit in 2023, said Hugh Johnston, chief financial officer with PepsiCo on a conference call.
"We also expect inflationary pressures to persist. We plan to mitigate the impact of these pressures by accelerating our productivity initiatives and sharpening our revenue management capabilities," according to prepared management remarks by PepsiCo executives.
For 2023, PepsiCo expects to have 6 percent growth in organic revenues, which adjusts for the impacts of foreign exchange translation, acquisitions, divestitures and other structural changes, and 8 percent increase in core constant currency EPS, which excludes the impact of foreign exchange translation.
In 2022, PepsiCo registered 14.4 percent expansion in organic revenue and 11 percent rise in core constant currency EPS.
PepsiCo announced a 10 percent increase in its annualized dividend to 5.06 U.S. dollars per share and a plan to repurchase around 1 billion U.S. dollars worth of shares in 2023. ■