PURCHASE, N.Y. — Continued momentum in the company’s Quaker and Frito-Lay businesses lifted operating profit 7% within the PepsiCo Americas Foods unit of PepsiCo, Inc. in the year ended Dec. 31, 2011. At $5,496 million, operating profit for PepsiCo Americas Foods was up from $5,121 million in fiscal 2010. Net revenue in the division also increased 7%, rising to $23,134 million from $21,544 million.
For the fourth quarter ended Dec. 31, operating profit within PepsiCo Americas Foods was $1,673 million, up 5% from $1,590 million, while revenues rose 10% to $7,373 million from $6,709 million.
Frito-Lay North America, the largest segment within PepsiCo Americas Foods, posted a 7% gain in operating profit during fiscal 2011 to $3,621 million. Net revenue also was higher, climbing 6% to $13,322 million from $12,573 million.
Full-year operating profit at Quaker Foods North America rose to $797 million, up 8% from $741 million in fiscal 2010. Net revenue was flat at $2,656 million.
Latin America Foods operating profit was $1,078 million in fiscal 2011, up 7% from $1,004 million in fiscal 2010. Net sales rose 13% to $7,156 million from $6,315 million.
“Volume growth of 5% and strong price realization led to double-digit net revenue and operating profit growth, although operating profit growth was adversely impacted by high commodity cost inflation,” PepsiCo said of the Latin America Foods business. “The gain from the sale of the fish business in Brazil contributed 5 percentage points of profit growth for the year and reduced net revenue growth by 1 percentage point.”
Overall, net income at PepsiCo, Inc. in the fiscal year ended Dec. 31 totaled $6,443 million, equal to $4.03 per share on the common stock, up 2% from $6,320 million, or $3.91 per share, in fiscal 2010. Net revenue was $66,504 million, up 15% from $57,838 million. For the fourth quarter, net income was $1,415 million, or 89c per share, up 4% from $1,365 million, or 85c per share, in the same period a year ago. Net revenue was $20,158 million, up 11% from $18,155 million.
Separately, PepsiCo announced a multi-year productivity program. The company said it incurred pre-tax non-core restructuring charges of $383 million in the fourth quarter of fiscal 2011, and it expects additional charges of about $425 million in 2012 and another $100 million from 2013 through 2015.