PepsiCo has benefitted from consumers hoarding snacks and sports drinks like Gatorade during the pandemic.
Overall, the company reported $22.46 billion in Q4 revenue – an 8.8% uptick in net growth. It expects a “mid-single digit increase” in revenue through the rest of 2021. The North American beverages category saw a 19% increase in operating profit.
Gatorade bolstered its reach during Q4 by adding to its roster of athletes. NBA star Damian Lillard inked a multi-year deal with the brand in December, and Matthew Wolff became the first professional golfer since Tiger Woods to endorse the sports drink.
Much of the company’s profit growth also came from its international presence.
- PepsiCo operating profit grew by 80% in Africa, South Asia, and the Middle East, largely due to major cost reductions and its acquisition of Pioneer Foods.
- China, Asia Pacific, and Australia and New Zealand operating profit grew by 7%, as increased spending on marketing appeared to pay dividends, overcoming logistical expenses related to the acquisition of Chinese snack brand Be & Cheery.
“We ended the year on a strong note with our global beverage business having accelerated while our global snacks and food business remained resilient in the fourth quarter,” said PepsiCo Chairman and CEO Ramon Laguarta.