PepsiCo Reports First-Quarter 2021 Results; Reaffirms 2021 ...

PepsiCo Reports First-Quarter 2021 Results; Reaffirms 2021 Financial Guidance

Reported (GAAP) First-Quarter 2021 Results

Net revenue growth Foreign exchange impact on net revenue Earnings per share (EPS) EPS change Foreign exchange impact on EPS

First Quarter 6.8% (0.5)% $1.24 29% --%

Organic/Core (non-GAAP)1 First-Quarter 2021 Results

Organic revenue growth Core EPS Core constant currency EPS change

First Quarter 2.4% $1.21 14%

PURCHASE, N.Y. - April 15, 2021 - PepsiCo, Inc. (NASDAQ: PEP) today reported results for

the first quarter 2021.

"We are pleased with our results for the first quarter as we successfully overcame challenges related to difficult year-over-year comparisons, uneven recoveries across many of our international markets and weather-related business disruptions in the U.S.," said Chairman and CEO Ramon Laguarta.

"Our results are indicative of the strength and resilience of our highly dedicated employees, diversified portfolio, agile supply chain and go-to-market systems and strong marketplace execution. And we remain fully committed to executing against our key set of priorities to become a Faster, Stronger and Better organization and win in the marketplace. Following our first quarter results, we have greater confidence in delivering on our financial guidance for the full year."

1 Please refer to the Glossary for the definitions of non-GAAP financial measures, including "Organic," "Core," and "Constant Currency," and to "Guidance and Outlook" for additional information regarding PepsiCo's full-year 2021 financial guidance. PepsiCo provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange and commodity mark-to-market net impacts. Please refer to PepsiCo's Quarterly Report on Form 10-Q for the 12 weeks ended March 20, 2021 (Q1 2021 Form 10-Q) filed with the SEC for additional information regarding PepsiCo's financial results.

1

Summary First-Quarter 2021 Performance

Frito-Lay North America

Quaker Foods North America

PepsiCo Beverages North America

Latin America

Europe

Africa, Middle East and South Asia

Asia Pacific, Australia and New Zealand and China Region

Total

GAAP Reported % Change

4

2

Revenue

Percentage Point Impact

Foreign Exchange Translation

Acquisitions, Divestitures,

and Other Structural Changes

--

(0.5)

(0.5)

--

Organic % Change

3

1

Unit Volume(a)

% Change

Food/Snack (1) (4)

Beverage

5

--

(3)

2

(5)

8

--

3

(2)

2

--

--

(3)

(2)

(4)

4

7

40

1

(42)

(1)

4

1

70

(8)

(44)

18

7

0.5

(5)

2

16

15

1

2

Operating Profit and EPS

Frito-Lay North America Quaker Foods North America PepsiCo Beverages North America Latin America Europe Africa, Middle East and South Asia Asia Pacific, Australia and New Zealand and

China Region Corporate unallocated expenses Total

GAAP Reported % Change 3 -- 23 (6) (10) 4

Percentage Point Impact

Items Affecting Comparability

Foreign Exchange Translation

(1)

--

--

--

1

(0.5)

(1)

8

3

3

(2)

--

47

--

(7)

(63)

62

--

20

(14)

--

Core Constant Currency % Change 2 (1) 23 1 (4) 2

39 (1) 7

EPS

29

(16)

--

14

(a) Excludes the impact of acquisitions and divestitures. In certain instances, the unit volume change differs from the impact of organic volume growth on net revenue growth, due to product mix, nonconsolidated joint venture volume, and, for our beverage businesses, temporary timing differences between bottler case sales (BCS) and concentrate shipments and equivalents (CSE). Our net revenue excludes nonconsolidated joint venture volume, and, for our franchise-owned beverage businesses, is based on CSE.

Note: Amounts may not sum due to rounding.

Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of "Organic," "Core" and "Constant Currency."

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Guidance and Outlook

The Company provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and commodity mark-to-market net impacts.

For 2021, the Company continues to expect: ? A mid-single-digit increase in organic revenue; ? A high-single-digit increase in core constant currency EPS; ? A core annual effective tax rate of approximately 21 percent; and ? Total cash returns to shareholders of approximately $5.9 billion, comprised of dividends of approximately $5.8 billion and share repurchases of $106 million. We completed our share repurchase activity and do not expect to repurchase any additional shares for the balance of 2021.

In addition, the Company continues to expect a 1-percentage-point foreign exchange translation tailwind to benefit reported net revenue and core EPS growth based on current market consensus rates.

Prepared Management Remarks and Live Question and Answer Webcast

At approximately 6:30 a.m. (Eastern time) on April 15, 2021, the Company will post prepared management remarks (in pdf format) of its first quarter 2021 results and business update, including its outlook for 2021, at investors. At 8:15 a.m. (Eastern time) on April 15, 2021, the Company will host a live question and answer session with investors and financial analysts. Further details will be accessible on the Company's website at investors.

Contacts: Investor Relations investor@

Communications pepsicomediarelations@

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PepsiCo, Inc. and Subsidiaries Condensed Consolidated Statement of Income (in millions except per share amounts, unaudited)

Net Revenue Cost of sales Gross profit Selling, general and administrative expenses Operating Profit Other pension and retiree medical benefits income Net interest expense and other Income before income taxes Provision for income taxes Net income Less: Net income attributable to noncontrolling interests Net Income Attributable to PepsiCo

Diluted Net income attributable to PepsiCo per common share Weighted-average common shares outstanding

12 Weeks Ended

3/20/2021

3/21/2020

$ 14,820 $ 13,881

6,671

6,127

8,149

7,754

5,837

5,830

2,312

1,924

120

77

(258)

(290)

2,174

1,711

451

360

1,723

1,351

9

13

$

1,714 $

1,338

$

1.24 $

0.96

1,387

1,396

A - 1

PepsiCo, Inc. and Subsidiaries Supplemental Financial Information

(in millions and unaudited)

Net Revenue Frito-Lay North America Quaker Foods North America PepsiCo Beverages North America Latin America Europe Africa, Middle East and South Asia Asia Pacific, Australia and New Zealand and China Region Total

Operating Profit Frito-Lay North America Quaker Foods North America PepsiCo Beverages North America Latin America Europe Africa, Middle East and South Asia Asia Pacific, Australia and New Zealand and China Region Corporate unallocated expenses Total

12 Weeks Ended

3/20/2021

3/21/2020

$

4,236 $

4,074

646

634

5,074

4,838

1,242

1,310

1,795

1,839

883

631

944

555

$

14,820 $

13,881

$

1,240 $

1,202

150

150

366

297

218

231

131

146

138

134

208

142

(139)

(378)

$

2,312 $

1,924

A - 2

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