Common-Size Income Statement
PepsiCo Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
The common-size income statement reveals several noteworthy trends in the company’s financial performance over the five-year period. Overall, the company demonstrates a generally stable revenue structure, with fluctuations occurring in profitability and expense management. Gross profit margins exhibit improvement initially, followed by a slight decline, while operating profit experiences more volatility.
- Gross Profit
- Gross profit as a percentage of net revenue increased from 53.35% in 2021 to 54.21% in 2023, indicating improved efficiency in managing the cost of sales. However, this margin decreased slightly to 54.15% in 2025. The cost of sales remained relatively consistent, fluctuating between -46.65% and -45.45% of net revenue, suggesting stable production or procurement costs.
- Operating Profit
- Operating profit experienced a decline from 14.04% in 2021 to 13.10% in 2023, before recovering to 14.03% in 2024. A more significant decrease is observed in 2025, falling to 12.24%. This volatility suggests changes in the management of selling, general, and administrative expenses, as well as the impact of non-recurring items like impairment charges.
- Selling, General and Administrative Expenses
- Selling, general and administrative expenses consistently represent a substantial portion of net revenue, ranging from -39.30% to -40.49%. A slight decrease is observed in 2025 to -39.78%, potentially contributing to the lower operating profit margin in that year. The consistent high percentage indicates significant investment in these areas.
- Non-Recurring Items
- The “Gain associated with the Juice Transaction” contributed 3.84% to net revenue in 2022, representing a one-time boost to profitability. Impairment of intangible assets negatively impacted operating profit in 2022 (-3.66%), 2023 (-1.01%), 2024 (-0.04%), and 2025 (-2.12%), with the 2025 impairment having the most substantial impact. These impairments suggest potential write-downs of asset values.
- Interest and Pension Expenses
- Interest expense decreased from -2.50% to -1.30% between 2021 and 2022, then increased steadily to -1.96% in 2025, indicating a potential shift in the company’s debt structure or interest rates. Other pension and retiree medical benefits income (expense) fluctuated, moving from a positive 0.66% in 2021 to a negative -0.14% in 2025, suggesting changes in pension plan performance or accounting adjustments.
- Net Income
- Net income as a percentage of net revenue followed a similar pattern to operating profit, increasing from 9.66% in 2021 to 10.48% in 2024, before declining to 8.83% in 2025. This decline aligns with the decrease in operating profit and the increased impairment charges observed in the final year. Net income attributable to PepsiCo mirrors this trend, moving from 9.59% to 8.77% over the period.
- Tax Rate
- The provision for income taxes remained relatively stable, fluctuating between -2.00% and -2.70% of net revenue. This consistency suggests a relatively stable effective tax rate throughout the period.