Stock Analysis on Net
Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Common-Size Income Statement 

PepsiCo Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 28, 2024 Dec 30, 2023 Dec 31, 2022 Dec 25, 2021 Dec 26, 2020
Net revenue 100.00 100.00 100.00 100.00 100.00
Cost of sales -45.45 -45.79 -46.97 -46.65 -45.18
Gross profit 54.55% 54.21% 53.03% 53.35% 54.82%
Selling, general and administrative expenses -40.49 -40.10 -39.89 -39.30 -40.49
Gain associated with the Juice Transaction 0.00 0.00 3.84 0.00 0.00
Impairment of intangible assets -0.04 -1.01 -3.66 0.00 0.00
Operating profit 14.03% 13.10% 13.33% 14.04% 14.32%
Other pension and retiree medical benefits income (expense) -0.02 0.27 0.15 0.66 0.17
Interest expense -1.75 -1.57 -1.30 -2.50 -1.78
Interest income and other 0.75 0.68 0.21 0.16 0.18
Net interest expense and other -1.00% -0.90% -1.09% -2.34% -1.60%
Income before income taxes 13.01% 12.48% 12.39% 12.36% 12.89%
Provision for income taxes -2.53 -2.47 -2.00 -2.70 -2.69
Net income 10.48% 10.01% 10.39% 9.66% 10.20%
Net income attributable to noncontrolling interests -0.05 -0.09 -0.08 -0.08 -0.08
Net income attributable to PepsiCo 10.43% 9.92% 10.31% 9.59% 10.12%

Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).

Cost of Sales
The cost of sales as a percentage of net revenue increased from -45.18% in 2020 to a peak of -46.97% in 2022, followed by a slight decline to -45.45% in 2024. This indicates a temporary rise in production or procurement costs before a moderate recovery.
Gross Profit
Gross profit margin declined from 54.82% in 2020 to 53.03% in 2022, aligned with the rise in cost of sales, but gradually improved to 54.55% by 2024, reflecting a rebound in profitability at the gross level.
Selling, General and Administrative Expenses
SG&A expenses as a percentage of net revenue showed minor fluctuations, decreasing from -40.49% in 2020 to -39.3% in 2021, then slightly increasing again to -40.49% by 2024, suggesting consistent investment in operational expenditures over the period.
Special Items
A gain associated with the Juice Transaction appeared exclusively in 2023 at 3.84%, contributing positively to that year's profitability. Conversely, impairment of intangible assets was recorded from 2022 through 2024, with a notable impact of -3.66% in 2022 tapering down to minimal at -0.04% in 2024, indicating some asset write-downs that lessened over time.
Operating Profit
Operating profit margin declined from 14.32% in 2020 to 13.1% in 2023, then showed recovery to 14.03% in 2024. The dip corresponds with increased costs and impairments, while the recovery may be linked to operational efficiencies and one-time gains.
Interest and Other Financial Items
Interest expense fluctuated over the period, increasing in 2021 to -2.5% before decreasing somewhat, ending at -1.75% in 2024. Interest income and other related income improved noticeably, especially from 2022 onwards, raising net interest expense to a minimum of -0.9% in 2023 before increasing slightly to -1% in 2024, indicating some benefit from financial activities.
Income Before Taxes
This metric remained relatively stable, fluctuating between 12.36% and 13.01% over the years, with a modest upward trend towards 2024, indicating stable earnings before tax adjustments.
Provision for Income Taxes
The provision for income taxes remained fairly constant, around -2.5%, with a slight reduction to -2.0% in 2022, reflecting minor variations in tax liability or effective rates.
Net Income
Net income as a percentage of net revenue decreased from 10.2% in 2020 to 9.59% in 2021, then steadily increased to 10.48% in 2024, suggesting an overall improvement in profitability after earlier dips. Net income attributable to noncontrolling interests remained minimal and stable, showing limited influence on consolidated profitability.