Giant soda maker, PepsiCo Inc’s (PEP.O) sales trumped Wall Street forecasts in the fourth quarter, as higher demand at its snacks business that makes Doritos and Cheetos made up for a decline in sales of sugary drinks.
PepsiCo on Tuesday also announced a stock buyback of up to $15 billion and a 15 percent increase in its dividend payout.
The maker of Tropicana juices and Mountain Dew said organic sales at its Frito-Lay division rose 5 percent in the quarter ended Dec. 30, buoyed by demand for salty snacks including Cheetos and Lay‘s. Organic sales exclude the impact of currency, acquisitions and divestitures.
Organic sales at PepsiCo’s North American beverages business that includes Mountain Dew and Gatorade fell 3 percent as U.S. consumers continued to move away from sugary drinks.
Total revenue rose slightly to $19.53 billion, topping analysts’ average expectation of $19.39 billion, according to Thomson Reuters.
PepsiCo recorded a net loss of $710 million, compared to a year-earlier profit of $1.40 billion, reflecting a $2.5 billion one-time charge related to new U.S. tax laws.
Excluding one-time items, the company earned $1.31 per share, edging past analysts’ estimates of $1.30, Reuters reports.
