Innovation propels strength at Frito-Lay North America

BUY, New York – “Consumer-focused innovation,” which included products such as Doritos 3D and Cheetos Crunch Pop Mix, helped drive operating profits and sales growth at Frito-Lay North America in fiscal 2021, said Roman L. Laguarto, Chairman and CEO of PepsiCo, Inc.

In prepared remarks released Feb. 10 ahead of the company’s financial results, Mr. Laguarto noted that FLNA’s business has been recognized as a driver of innovation № 1 in the salty and salty categories in 2021, according to the IRI, Chicago. market research firm.

FLNA’s operating income was $ 5.63 billion in the fiscal year ended Dec. 25, 2021, up 5.4% from $ 5.34 billion in the same period a year ago. Revenue was $ 19.61 billion, up 7.8% from $ 18.19 billion.

“Frito-Lay’s year-round results have also contributed to investment in capacity and capacity across the value chain to support growth with our package diversity offerings that deliver strong double-digit net income growth in both the fourth quarter and full year.” said Mr. Laguarte. “In addition, many of Frito-Lay’s major, favorite brands have driven strong net revenue growth year-over-year: Ruffles has double-digit net revenue growth, Doritos has high single-digit net income growth, and Lay’s, Tostitos and Cheetos have solid net income growth.”

Mr Laguarta also said new brands targeting more nutritious snacks, such as Bare, Smartfood and PopCorners, had delivered strong sales growth in the quarter and year.

Operating profit in the Quaker Foods business in North America, meanwhile, fell 14% in fiscal 2021 to $ 578 million from $ 669 million, primarily reflecting bottlenecks in supply chains as well as escalating inflationary pressures related to spending on goods, transport and labor. Revenue rose to $ 2.75 billion from $ 2.74 billion.

“During 2021, we adapted and expanded our Quaker brands to focus on consumer-focused innovation in convenient food as well as new opportunity,” said Mr. Laguarta. “Some examples include Cheetos Mac’ n Cheese, Pasta Roni Heat & Eat and snacks such as rice chips and rice cakes. As a result, in 2021, our business has taken or won market share in the categories of convenience foods, snacks, hot and ready-to-eat cereals in the United States.

Overall, PepsiCo’s net income in fiscal 2021 was $ 7.62 billion, or $ 5.49 per share on common stock, up 7% from $ 7.12 billion, or $ 5.12 per share , for the same period a year ago. Revenue was $ 79.47 billion, up 13% from $ 70.37 billion.

“Our year-over-year net income growth has accelerated significantly in 2021 compared to the previous year, and it gives us extra confidence that the investments we have made in our people, brands, innovation, supply chains, market entry systems and digitization initiatives are working, ”Mr Laguart said.

Looking back to fiscal year 2022, Mr Laguarto said PepsiCo expects to achieve organic revenue growth of 6%, which will be at its highest level in the long-term target range. The company also expects to ensure an increase in core fixed foreign exchange earnings of 8% per share.

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