Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
PepsiCo Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 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).
Over the five-year period, net revenue demonstrates a consistent upward trajectory, increasing from US$79,474 million in 2021 to US$93,925 million in 2025. While the rate of growth decelerates over time, the overall trend indicates expanding sales. Cost of sales also increased throughout the period, though at a slower rate than net revenue, resulting in expanding gross profit.
Operating profit generally increased from 2021 to 2024, peaking at US$12,887 million, before experiencing a decline in 2025 to US$11,498 million. This 2025 decrease is partially attributable to increased impairment of intangible assets and a rise in net interest expense. Selling, general and administrative expenses consistently increased year-over-year, contributing to pressure on operating profit margins.
- Revenue Growth
- The compound annual growth rate (CAGR) for net revenue from 2021 to 2025 is approximately 4.6%. Growth was most pronounced between 2021 and 2022 (12.4%) and slowed considerably in subsequent years.
- Gross Profit Margin
- Gross profit margin improved from 53.3% in 2021 to 54.2% in 2023, then remained relatively stable at approximately 54.0% in 2024 and 2025. This suggests improved efficiency in managing the cost of sales relative to revenue.
- Operating Margin
- Operating margin fluctuated between 14.0% and 14.8% from 2021 to 2024, peaking in 2024. However, it decreased to 12.3% in 2025, reflecting the combined impact of lower operating profit and higher revenue.
Net income attributable to PepsiCo followed a similar pattern to operating profit, increasing from US$7,618 million in 2021 to US$9,578 million in 2024, before decreasing to US$8,240 million in 2025. The impact of impairment charges and increased interest expense are evident in the 2025 decline. The provision for income taxes remained relatively consistent as a percentage of income before income taxes, ranging between 21.7% and 23.1% throughout the period.
- Net Profit Margin
- Net profit margin peaked at 10.4% in 2024, decreasing to 8.8% in 2025. This decline mirrors the trend in operating margin and is influenced by the factors previously mentioned.
- Interest Expense & Income
- Interest expense decreased significantly from 2021 to 2022, but then began to rise again, reaching US$1,840 million in 2025. Interest income also increased, partially offsetting the higher expense, but net interest expense still increased over the period.
The Gain associated with the Juice Transaction in 2022 represents a non-recurring item that positively impacted operating profit in that year. Impairment of intangible assets was minimal until 2023, after which it became a more significant factor, particularly in 2025, negatively affecting profitability.