PepsiCo has reported better-than-expected quarterly net revenue, as the company fought against the effects of a strong dollar.
The company on Thursday announced an increase of its annualized dividend to $3.01 per share from $2.81 per share and said it would engage in a $7 billion buyback program.
While a strong US dollar hurt margins, the company said it increased snack and beverage sales at a higher rate than previously expected.
Revenue from PepsiCo‘s North America beverages business, which the company started breaking out from the third quarter, rose 2% in the fourth quarter ended December 26. That division accounted for 31.5% of total revenue.
Revenue from its snacks business, which includes Frito-lay and Doritos chips, also increased 2% in the region.
Frito-Lay North America and North America Beverages were the only two businesses to report revenue growth in the quarter.
The company continued to report strong gains even as the US dollar rose 11.7% in the fourth quarter compared with the same quarter a year earlier.
The net income attributable to the company rose to $1.72 billion, or $1.17 per share, in the fourth quarter, from $1.31 billion, or 87 cents per share, a year earlier.
Excluding items, the company earned $1.06 per share.
Net revenue at Pepsi fell 7% to $18.59 billion.