PepsiCo Inc (PEP)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 11,986,000 | 11,512,000 | 11,162,000 | 10,080,000 | 10,291,000 |
| Revenue | US$ in thousands | 91,471,000 | 86,392,000 | 79,474,000 | 70,372,000 | 67,161,000 |
| Operating profit margin | 13.10% | 13.33% | 14.04% | 14.32% | 15.32% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $11,986,000K ÷ $91,471,000K
= 13.10%
PepsiCo Inc's operating profit margin has shown a declining trend over the last five years, from 15.32% in 2019 to 13.10% in 2023. This indicates a decreasing efficiency in generating profits from its core business operations. The drop in operating profit margins could be attributed to various factors such as increasing costs, pricing pressures, or changes in sales mix. It is essential for PepsiCo to closely monitor and address the factors affecting its operating profit margins to ensure sustainable profitability and financial health in the long run.
Peer comparison
Dec 31, 2023
Company name
Symbol
Operating profit margin
PepsiCo Inc
PEP
13.10%
Constellation Brands Inc Class A
STZ
15.36%
Keurig Dr Pepper Inc
KDP
22.37%
The Coca-Cola Company
KO
24.72%