PepsiCo Reports Strong Sales and Operating Results for 2007 Fourth Quarter and Full Year

PepsiCo (NYSE: PEP) reported continued strong operating performance in the fourth quarter of 2007. Net revenue increased 17% in the quarter and reported operating profit increased 9%;core division operating profit, excluding restructuring items, increased 11%. Reported EPS was $0.77 including the impact of restructuring actions and certain tax benefits;excluding these items, core EPS was $0.80. For the year, net revenue increased 12%, reported operating profit and core division operating profit both grew 10% and core EPS grew 13% to $3.38;reported EPS of $3.41 grew 2%, largely reflecting the lapping of tax benefits in 2006.

PepsiCo Chairman and CEO Indra Nooyi said, "Our strong top- and bottom-line results in 2007 once again demonstrated the balance and strength of our global portfolio. All of our segments posted solid results for the year."

"As we begin 2008, I am confident we have the right strategies in place to deliver full year performance consistent with our long-term profit guidance,"Ms. Nooyi continued. "Our brands are some of the best loved trademarks in the world, and we're continually adding to their vitality through exceptional innovation and unmatched go-to-market execution. We will fully leverage these advantages -- together with enhanced productivity across the business system and effective net pricing -- to address the
challenge of accelerating input cost inflation. The new organization is ready to take the best of PepsiCo across our divisions and geographies to generate profitable growth, expand our global footprint and make Performance with Purpose the driving force behind everything we do."