PepsiCo(PEP) - 2025 Q3 - Quarterly Results

Executive Summary & Financial Highlights PepsiCo reported Q3 2025 GAAP net revenue growth of 2.6% and diluted EPS of $1.90, with organic revenue at 1.3% and core constant currency EPS declining by 2%, alongside strategic priorities for growth and cost optimization Third-Quarter 2025 Reported (GAAP) Results PepsiCo reported a 2.6% net revenue performance for Q3 2025, with a foreign exchange impact of 0.5%. Diluted EPS for the quarter was $1.90, representing an 11% decrease year-over-year, with a 1% positive foreign exchange impact | Metric | Third-Quarter | Year-to-Date | | :--- | :--- | :--- | | Net revenue performance | 2.6% | 0.8% | | Foreign exchange impact on net revenue | 0.5% | (1)% | | Earnings per share (EPS) | $1.90 | $4.15 | | EPS change | (11)% | (29)% | | Foreign exchange impact on EPS | 1% | (2)% | Third-Quarter 2025 Organic/Core (non-GAAP) Results For Q3 2025, PepsiCo achieved 1.3% organic revenue performance. Core EPS stood at $2.29, with core constant currency EPS declining by 2% compared to the prior year | Metric | Third-Quarter | Year-to-Date | | :--- | :--- | :--- | | Organic revenue performance | 1.3% | 1.5% | | Core EPS | $2.29 | $5.88 | | Core constant currency EPS change | (2)% | (3.5)% | CEO Commentary & Strategic Priorities Chairman and CEO Ramon Laguarta highlighted accelerated reported net revenue growth, driven by international business resilience, improved momentum in North America Beverages, and portfolio reshaping. Key priorities for the future include accelerating growth and aggressively optimizing the cost structure through innovation, sharpening price pack architecture, and right-sizing the cost base - Reported net revenue growth accelerated, reflecting resilience in international business, improved momentum in North America Beverages, and benefits from portfolio reshaping actions[5] - Top priorities are to accelerate growth and aggressively optimize the cost structure[6] - Strategies include introducing a strong pipeline of innovation, continuously sharpening price pack architecture, and right-sizing the entire cost base[6] Segment Performance Summary PepsiCo's Q3 and year-to-date 2025 segment performance shows varied revenue and operating profit changes across North America, EMEA, Latin America, and Asia Pacific regions Third-Quarter 2025 Segment Performance In Q3 2025, PepsiCo's total reported net revenue increased by 3%, with organic revenue growth of 1%. EMEA showed strong organic revenue growth at 5.5%, while PFNA experienced a 3% organic revenue decline. Operating profit saw a GAAP reported decline of 8% overall, but core constant currency operating profit declined by 1.5% Q3 2025 Revenue Performance by Segment | Segment | GAAP Reported % Change | Foreign Exchange Translation | Acquisitions and Divestitures | Organic % Change | Convenient Foods Volume % Change | Beverages Volume % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | PepsiCo Foods North America (PFNA) | — | — | (2.5) | (3) | (4) | | | PepsiCo Beverages North America (PBNA) | 2 | — | — | 2 | | (3) | | International Beverages Franchise (IB Franchise) | — | (1) | — | (1) | | (1) | | Europe, Middle East and Africa (EMEA) | 9 | (4) | — | 5.5 | (1) | 1.5 | | Latin America Foods (LatAm Foods) | 2 | 2 | — | 4 | — | | | Asia Pacific Foods | 2 | — | (1) | 1 | 3 | | | Total | 3 | (0.5) | (1) | 1 | (1) | (1) | Q3 2025 Operating Profit and EPS by Segment | Segment | GAAP Reported % Change | Items Affecting Comparability | Foreign Exchange Translation | Core Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | PFNA | (5) | 2 | — | (3.5) | | PBNA | (20) | 13 | — | (7) | | IB Franchise | (5) | 13 | (1) | 7 | | EMEA | 1 | 6 | (4) | 3 | | LatAm Foods | (12) | 18 | 2 | 9 | | Asia Pacific Foods | 16 | 3 | (1) | 18 | | Corporate unallocated expenses | (3.5) | 19 | — | 16 | | Total | (8) | 7 | (1) | (1.5) | | EPS | (11) | 10 | (1) | (2) | Year-to-Date 2025 Segment Performance Year-to-date 2025, PepsiCo's total reported net revenue increased by 1%, with organic revenue growth of 1.5%. LatAm Foods showed significant foreign exchange impact on revenue (10%) and strong core constant currency operating profit growth (8%). Overall GAAP reported operating profit declined by 25%, while core constant currency operating profit declined by 2% YTD 2025 Revenue Performance by Segment | Segment | GAAP Reported % Change | Foreign Exchange Translation | Acquisitions and Divestitures | Organic % Change | Convenient Foods Volume % Change | Beverages Volume % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | PFNA | — | — | (2) | (2) | (2) | | | PBNA | 1 | — | — | 1 | | (3) | | IB Franchise | 2 | 1 | — | 3 | | 1 | | EMEA | 6 | — | — | 6 | (5) | — | | LatAm Foods | (5) | 10 | — | 4 | 1 | | | Asia Pacific Foods | — | 1 | (1) | — | 4 | | | Total | 1 | 1 | (0.5) | 1.5 | (2) | — | YTD 2025 Operating Profit and EPS by Segment | Segment | GAAP Reported % Change | Items Affecting Comparability | Foreign Exchange Translation | Core Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | PFNA | (7) | (1) | — | (8) | | PBNA | (77) | 77 | — | — | | IB Franchise | 2 | 5 | 2 | 9 | | EMEA | (13) | 20 | (1) | 5.5 | | LatAm Foods | (9) | 6 | 12 | 8 | | Asia Pacific Foods | (21) | 21 | — | — | | Corporate unallocated expenses | 9 | 5 | — | 14 | | Total | (25) | 22 | 2 | (2) | | EPS | (29) | 24 | 2 | (3.5) | Financial Guidance and Outlook PepsiCo reaffirms its 2025 guidance for low-single-digit organic revenue growth and stable core constant currency EPS, with an updated foreign exchange impact and details on the investor webcast Full-Year 2025 Guidance PepsiCo reaffirms its 2025 guidance, expecting low-single-digit organic revenue growth and core constant currency EPS to be approximately even with the prior year. The company anticipates a core annual effective tax rate of approximately 20% and plans total cash returns to shareholders of approximately $8.6 billion, comprising $7.6 billion in dividends and $1.0 billion in share repurchases - Company continues to expect a low-single-digit increase in organic revenue for 2025[18] - Core constant currency EPS is expected to be approximately even with the prior year[18] - Anticipates a core annual effective tax rate of approximately 20%[18] - Total cash returns to shareholders of approximately $8.6 billion, including $7.6 billion in dividends and $1.0 billion in share repurchases[18] Foreign Exchange Impact Update The company has updated its expectation for foreign exchange translation headwind, now anticipating approximately 0.5 percentage points negative impact on reported net revenue and core EPS growth, an improvement from the previously expected 1.5-percentage-point headwind. This implies a 0.5% decline in core EPS for 2025, an improvement from the prior 1.5% decline - Foreign exchange translation headwind is now expected to be approximately 0.5 percentage points, negatively impacting reported net revenue and core EPS growth (previously 1.5 percentage points)[15] - This updated assumption implies a 0.5% decline in core EPS in 2025 (previously 1.5% decline) compared to 2024 core EPS of $8.16[16] Investor Webcast Information PepsiCo will post prepared management remarks for its Q3 2025 results and 2025 outlook on October 9, 2025, at 6:30 a.m. (Eastern time) on its investor relations website. A live question and answer session with investors and financial analysts will follow at 8:15 a.m. (Eastern time) on the same day - Prepared management remarks for Q3 2025 results and 2025 outlook will be posted at 6:30 a.m. (Eastern time) on October 9, 2025, at https://www.pepsico.com/investors[17](index=17&type=chunk) - A live question and answer session will be hosted at 8:15 a.m. (Eastern time) on October 9, 2025, accessible via the company's investor website[17] Condensed Consolidated Financial Statements PepsiCo's condensed consolidated statements of income, cash flows, and balance sheet for Q3 and year-to-date 2025 detail key financial positions and performance Condensed Consolidated Statement of Income For the 12 weeks ended September 6, 2025, PepsiCo reported net revenue of $23,937 million, a gross profit of $12,824 million, and net income attributable to PepsiCo of $2,603 million, resulting in diluted EPS of $1.90. For the 36 weeks ended September 6, 2025, net revenue was $64,582 million, gross profit $35,239 million, and diluted EPS $4.15 Condensed Consolidated Statement of Income (Selected Data) | Metric | 12 Weeks Ended 9/6/2025 (in millions) | 12 Weeks Ended 9/7/2024 (in millions) | 36 Weeks Ended 9/6/2025 (in millions) | 36 Weeks Ended 9/7/2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Net Revenue | $23,937 | $23,319 | $64,582 | $64,070 | | Cost of sales | $11,113 | $10,396 | $29,343 | $28,563 | | Gross profit | $12,824 | $12,923 | $35,239 | $35,507 | | Operating Profit | $3,569 | $3,872 | $7,941 | $10,637 | | Net Income Attributable to PepsiCo | $2,603 | $2,930 | $5,700 | $8,055 | | Diluted Net income attributable to PepsiCo per common share | $1.90 | $2.13 | $4.15 | $5.84 | - For the 12 and 36 weeks ended September 6, 2025, charges were recognized primarily related to the impairment of the Rockstar brand[20] Condensed Consolidated Statement of Cash Flows For the 36 weeks ended September 6, 2025, net cash provided by operating activities was $5,468 million, a decrease from $6,220 million in the prior year. Net cash used for investing activities significantly increased to $5,237 million, primarily due to higher acquisitions. Net cash used for financing activities decreased to $1,008 million, largely due to increased proceeds from long-term debt issuances Condensed Consolidated Statement of Cash Flows (Selected Data) | Activity | 36 Weeks Ended 9/6/2025 (in millions) | 36 Weeks Ended 9/7/2024 (in millions) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $5,468 | $6,220 | | Net Cash Used for Investing Activities | $(5,237) | $(2,965) | | Net Cash Used for Financing Activities | $(1,008) | $(5,282) | | Net Decrease in Cash and Cash Equivalents and Restricted Cash | $(382) | $(2,418) | | Cash and Cash Equivalents and Restricted Cash, End of Period | $8,171 | $7,343 | - Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of intangible and other assets significantly increased to $3,176 million in 2025 from $31 million in 2024[23] - Proceeds from issuances of long-term debt more than doubled to $8,179 million in 2025 from $4,014 million in 2024[25] Condensed Consolidated Balance Sheet As of September 6, 2025, PepsiCo's total assets increased to $106,558 million from $99,467 million at December 28, 2024. This increase was driven by higher accounts and notes receivable, inventories, and goodwill. Total liabilities also increased to $87,015 million, primarily due to a rise in long-term debt obligations. Total equity grew to $19,543 million Condensed Consolidated Balance Sheet (Selected Data) | Metric | 9/6/2025 (in millions) | 12/28/2024 (in millions) | | :--- | :--- | :--- | | Total Current Assets | $28,722 | $25,826 | | Property, Plant and Equipment, net | $29,053 | $28,008 | | Goodwill | $18,845 | $17,534 | | Total Assets | $106,558 | $99,467 | | Total Current Liabilities | $31,499 | $31,536 | | Long-Term Debt Obligations | $44,113 | $37,224 | | Total Liabilities | $87,015 | $81,296 | | Total Equity | $19,543 | $18,171 | - Accounts and notes receivable, net, increased to $12,634 million from $10,333 million[28] - Inventories increased to $6,093 million from $5,306 million[28] Non-GAAP Measures & Glossary This section explains PepsiCo's use of non-GAAP financial measures for internal decision-making and provides a comprehensive glossary of related terms Explanation of Non-GAAP Measures PepsiCo uses non-GAAP financial measures like organic revenue performance, core results, and core constant currency results internally for operational and strategic decisions, including annual operating plans and compensation. These measures provide additional information for comparing historical operating results and understanding underlying performance trends, adjusting for items not indicative of ongoing performance such as mark-to-market gains/losses, restructuring charges, and acquisition/divestiture impacts - Non-GAAP measures are used internally for operating and strategic decisions, annual operating plan preparation, business performance evaluation, and compensation determination[29] - These measures facilitate comparison of historical operating results and trends, providing transparency on how the business is evaluated[29] - Adjustments are made for items like mark-to-market gains/losses, restructuring charges, acquisition/divestiture charges, asset impairment, product recall impacts, and pension/retiree medical-related amounts[30] Glossary of Non-GAAP Terms The glossary defines key non-GAAP terms used by PepsiCo, including 'Acquisitions and divestitures' for structural changes, 'Bottler case sales (BCS)' and 'Concentrate shipments and equivalents (CSE)' for beverage volume, 'Constant currency' for results assuming stable foreign exchange rates, and 'Core' results which exclude specific items affecting comparability. It also details various excluded items such as mark-to-market net impact, restructuring and impairment charges, acquisition and divestiture-related charges, impairment and other charges (e.g., Rockstar brand), indirect and income tax impact, product recall-related impact, and pension and retiree medical-related impact. 'Organic revenue performance' is defined as revenue adjusted for foreign exchange, acquisitions, divestitures, and calendar week impacts - Acquisitions and divestitures: Mergers, acquisitions, divestitures, and structural changes[32] - Constant currency: Financial results assuming constant foreign currency exchange rates based on prior-year period rates[34] - Core: Non-GAAP financial measures excluding items affecting comparability, such as mark-to-market net impact, restructuring and impairment charges, acquisition and divestiture-related charges, impairment and other charges (e.g., Rockstar brand), indirect and income tax impact, product recall-related impact, and pension and retiree medical-related impact[35][36][37][38][39][40][41][42] - Organic revenue performance: Revenue adjusted for foreign exchange translation, acquisitions and divestitures, and the impact of an additional week of results (every five or six years)[44] Reconciliation of GAAP and Non-GAAP Information This section provides detailed reconciliations of PepsiCo's GAAP reported results to non-GAAP measures for organic revenue, operating profit, and diluted EPS across various periods Organic Revenue Performance Reconciliation (Q3 & YTD) The reconciliation details the adjustments from GAAP reported net revenue to non-GAAP organic revenue performance for both the 12 and 36 weeks ended September 6, 2025. For Q3 2025, total reported net revenue growth was 3%, which adjusted to 1% organic revenue growth after accounting for foreign exchange translation and acquisitions/divestitures. Year-to-date, reported net revenue growth was 1%, leading to 1.5% organic revenue growth Organic Revenue Performance Reconciliation (12 Weeks Ended 9/6/2025) | Segment | Reported Net Revenue % Change, GAAP | Impact of foreign exchange translation | Impact of acquisitions and divestitures | Organic Revenue % Change, non-GAAP | | :--- | :--- | :--- | :--- | :--- | | PFNA | — | — | (2.5) | (3) | | PBNA | 2 | — | — | 2 | | IB Franchise | — | (1) | — | (1) | | EMEA | 9 | (4) | — | 5.5 | | LatAm Foods | 2 | 2 | — | 4 | | Asia Pacific Foods | 2 | — | (1) | 1 | | Total | 3 | (0.5) | (1) | 1 | Organic Revenue Performance Reconciliation (36 Weeks Ended 9/6/2025) | Segment | Reported Net Revenue % Change, GAAP | Impact of foreign exchange translation | Impact of acquisitions and divestitures | Organic Revenue % Change, non-GAAP | | :--- | :--- | :--- | :--- | :--- | | PFNA | — | — | (2) | (2) | | PBNA | 1 | — | — | 1 | | IB Franchise | 2 | 1 | — | 3 | | EMEA | 6 | — | — | 6 | | LatAm Foods | (5) | 10 | — | 4 | | Asia Pacific Foods | — | 1 | (1) | — | | Total | 1 | 1 | (0.5) | 1.5 | Certain Line Items by Segment Reconciliation (Q3 2025) For the 12 weeks ended September 6, 2025, the reconciliation shows adjustments from GAAP to Core for various line items by segment. Total GAAP reported operating profit was $3,569 million (14.9% margin), which adjusted to $4,137 million (17.3% margin) on a non-GAAP Core basis, after adding back items affecting comparability such as restructuring and impairment charges ($142 million) and acquisition and divestiture-related charges ($221 million) Q3 2025 Operating Profit Reconciliation (Selected Data) | Metric | Reported Operating Profit, GAAP (in millions) | Items Affecting Comparability (in millions) | Core Operating Profit, non-GAAP (in millions) | Core Operating Profit Margin, non-GAAP | | :--- | :--- | :--- | :--- | :--- | | PFNA | $1,536 | $34 | $1,570 | 17.3% | | PBNA | $729 | $246 | $975 | | | IB Franchise | $436 | $75 | $511 | | | EMEA | $720 | $88 | $808 | | | LatAm Foods | $424 | $99 | $523 | | | Asia Pacific Foods | $151 | $5 | $156 | | | Corporate unallocated expenses | $(427) | $21 | $(406) | | | Total | $3,569 | $568 | $4,137 | 17.3% | - Items affecting comparability for Q3 2025 operating profit included $142 million in restructuring and impairment charges, $221 million in acquisition and divestiture-related charges, and $100 million in impairment and other charges[52] Certain Line Items by Segment Reconciliation (Q3 2024) For the 12 weeks ended September 7, 2024, GAAP reported operating profit was $3,872 million (16.6% margin). After adjusting for items affecting comparability, the non-GAAP Core operating profit was $4,176 million (17.9% margin). Key adjustments included $238 million for restructuring and impairment charges and $52 million for mark-to-market net impact Q3 2024 Operating Profit Reconciliation (Selected Data) | Metric | Reported Operating Profit, GAAP (in millions) | Items Affecting Comparability (in millions) | Core Operating Profit, non-GAAP (in millions) | Core Operating Profit Margin, non-GAAP | | :--- | :--- | :--- | :--- | :--- | | PFNA | $1,620 | $7 | $1,627 | 17.9% | | PBNA | $914 | $133 | $1,047 | | | IB Franchise | $458 | $15 | $473 | | | EMEA | $713 | $45 | $758 | | | LatAm Foods | $480 | $11 | $491 | | | Asia Pacific Foods | $129 | $2 | $131 | | | Corporate unallocated expenses | $(442) | $91 | $(351) | | | Total | $3,872 | $304 | $4,176 | 17.9% | - Items affecting comparability for Q3 2024 operating profit included $238 million in restructuring and impairment charges and $52 million in mark-to-market net impact[56] Certain Line Items by Segment Reconciliation (YTD 2025) For the 36 weeks ended September 6, 2025, GAAP reported operating profit was $7,941 million (12.3% margin). After adjustments, non-GAAP Core operating profit was $10,837 million (16.8% margin). Significant adjustments included $1,960 million for impairment and other charges, $554 million for restructuring and impairment charges, and $308 million for acquisition and divestiture-related charges YTD 2025 Operating Profit Reconciliation (Selected Data) | Metric | Reported Operating Profit, GAAP (in millions) | Items Affecting Comparability (in millions) | Core Operating Profit, non-GAAP (in millions) | Core Operating Profit Margin, non-GAAP | | :--- | :--- | :--- | :--- | :--- | | PFNA | $4,463 | $170 | $4,633 | 16.8% | | PBNA | $550 | $2,014 | $2,564 | | | IB Franchise | $1,248 | $73 | $1,328 | | | EMEA | $1,310 | $388 | $1,698 | | | LatAm Foods | $1,301 | $118 | $1,419 | | | Asia Pacific Foods | $321 | $89 | $410 | | | Corporate unallocated expenses | $(1,252) | $37 | $(1,215) | | | Total | $7,941 | $2,896 | $10,837 | 16.8% | - Items affecting comparability for YTD 2025 operating profit included $1,960 million in impairment and other charges, $554 million in restructuring and impairment charges, and $308 million in acquisition and divestiture-related charges[60] Certain Line Items by Segment Reconciliation (YTD 2024) For the 36 weeks ended September 7, 2024, GAAP reported operating profit was $10,637 million (16.6% margin). After adjustments, non-GAAP Core operating profit was $11,236 million (17.5% margin). Key adjustments included $393 million for restructuring and impairment charges and $181 million for product recall-related impact YTD 2024 Operating Profit Reconciliation (Selected Data) | Metric | Reported Operating Profit, GAAP (in millions) | Items Affecting Comparability (in millions) | Core Operating Profit, non-GAAP (in millions) | Core Operating Profit Margin, non-GAAP | | :--- | :--- | :--- | :--- | :--- | | PFNA | $4,802 | $228 | $5,030 | 17.5% | | PBNA | $2,411 | $150 | $2,561 | | | IB Franchise | $1,221 | $15 | $1,236 | | | EMEA | $1,509 | $85 | $1,594 | | | LatAm Foods | $1,436 | $32 | $1,468 | | | Asia Pacific Foods | $407 | $6 | $413 | | | Corporate unallocated expenses | $(1,149) | $83 | $(1,066) | | | Total | $10,637 | $599 | $11,236 | 17.5% | - Items affecting comparability for YTD 2024 operating profit included $393 million in restructuring and impairment charges and $181 million in product recall-related impact[64] Certain Line Items Reconciliation (Q3 2025 & Q3 2024) For Q3 2025, GAAP diluted EPS was $1.90, which adjusted to $2.29 on a non-GAAP Core basis. For Q3 2024, GAAP diluted EPS was $2.13, adjusting to $2.31 Core. The reconciliation highlights the impact of various items affecting comparability on net income and EPS, such as acquisition and divestiture-related charges and indirect and income tax impact Q3 Diluted EPS Reconciliation | Metric | 12 Weeks Ended 9/6/2025 (GAAP) | Items Affecting Comparability (9/6/2025) | 12 Weeks Ended 9/6/2025 (Core) | 12 Weeks Ended 9/7/2024 (GAAP) | Items Affecting Comparability (9/7/2024) | 12 Weeks Ended 9/7/2024 (Core) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net income attributable to PepsiCo per common share - diluted | $1.90 | $0.39 | $2.29 | $2.13 | $0.18 | $2.31 | | Effective tax rate | 21.4% | -2.0% | 19.4% | 20.3% | 0.0% | 20.3% | - For Q3 2025, items affecting comparability increased diluted EPS by $0.39, including $0.12 from acquisition and divestiture-related charges and $0.09 from indirect and income tax impact[68] - For Q3 2024, items affecting comparability increased diluted EPS by $0.18, primarily from $0.14 in restructuring and impairment charges[68] Certain Line Items Reconciliation (YTD 2025 & YTD 2024) For YTD 2025, GAAP diluted EPS was $4.15, which adjusted to $5.88 on a non-GAAP Core basis. For YTD 2024, GAAP diluted EPS was $5.84, adjusting to $6.20 Core. The reconciliation highlights significant adjustments for impairment and other charges, which added $1.12 to YTD 2025 Core EPS YTD Diluted EPS Reconciliation | Metric | 36 Weeks Ended 9/6/2025 (GAAP) | Items Affecting Comparability (9/6/2025) | 36 Weeks Ended 9/6/2025 (Core) | 36 Weeks Ended 9/7/2024 (GAAP) | Items Affecting Comparability (9/7/2024) | 36 Weeks Ended 9/7/2024 (Core) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net income attributable to PepsiCo per common share - diluted | $4.15 | $1.73 | $5.88 | $5.84 | $0.36 | $6.20 | | Effective tax rate | 20.8% | -0.6% | 20.2% | 20.2% | 0.1% | 20.3% | - For YTD 2025, items affecting comparability increased diluted EPS by $1.73, with impairment and other charges contributing $1.12[72] - For YTD 2024, items affecting comparability increased diluted EPS by $0.36, with restructuring and impairment charges contributing $0.24 and product recall-related impact contributing $0.10[72] Fiscal 2024 Diluted EPS Reconciliation For the fiscal year 2024, PepsiCo's reported diluted EPS (GAAP) was $6.95. After adjusting for various items affecting comparability, the non-GAAP Core diluted EPS was $8.16. Significant adjustments included $0.41 for restructuring and impairment charges and $0.38 for impairment and other charges Fiscal 2024 Diluted EPS Reconciliation | Metric | Year Ended 12/28/2024 | | :--- | :--- | | Reported diluted EPS, GAAP measure | $6.95 | | Mark-to-market net impact | (0.01) | | Restructuring and impairment charges | 0.41 | | Acquisition and divestiture-related charges | 0.01 | | Impairment and other charges | 0.38 | | Indirect and income tax impact | 0.16 | | Product recall-related impact | 0.10 | | Pension and retiree medical-related impact | 0.16 | | Core diluted EPS, non-GAAP measure | $8.16 | Cautionary Statement This section outlines cautionary statements regarding PepsiCo's forward-looking statements and identifies key risks that could materially affect future results Forward-Looking Statements and Risk Factors This section contains cautionary statements regarding forward-looking statements, including 2025 guidance, which are based on current information and projections. These statements inherently involve risks and uncertainties that could cause actual results to differ materially. Key risks include future demand, brand image damage, competition, workforce management, water scarcity, retail landscape changes, supply chain disruptions, geopolitical conditions, economic changes, cyber incidents, and regulatory compliance. Investors are advised not to place undue reliance on these statements and to refer to SEC filings for additional risk factors - Forward-looking statements are based on currently available information, operating plans, and projections, and inherently involve risks and uncertainties[79] - Risks include future demand for products, damage to reputation, product recalls, competition, workforce management, water scarcity, changes in retail landscape, supply chain disruptions, political/social/geopolitical conditions, economic conditions, cyber incidents, and regulatory compliance[79] - Investors are cautioned not to place undue reliance on forward-looking statements and should refer to PepsiCo's SEC filings (Form 10-K, 10-Q, 8-K) for additional risk factors[80]