PepsiCo Inc. · Earnings release · 8-K Exhibit 99

PepsiCo Reports Second-Quarter 2025 Results; Affirms 2025 Financial Guidance and Updates Expected Foreign Exchange Impact

Reported (GAAP) Second-Quarter 2025 Results

Second-Quarter

Year-to-Date

Net revenue performance

Foreign exchange impact on net revenue

(2)%

Earnings per share (EPS)

EPS change

Foreign exchange impact on EPS

(2)%

(3)%

Organic/Core (non-GAAP)1 Second-Quarter 2025 Results

Second-Quarter

Year-to-Date

Organic revenue performance

Core EPS

Core constant currency EPS change

(5)%

PURCHASE, N.Y. - July 17, 2025 - PepsiCo, Inc. (NASDAQ: PEP) today reported results for the second quarter 2025.

“We’re encouraged by the acceleration in our net revenue growth versus the previous quarter with our businesses effectively navigating through a challenging environment. T1Our international business momentum continued, while our North America businesses improved their execution and competitiveness in key subcategories and channels,” said Chairman and CEO Ramon Laguarta.

Laguarta continued, “As we look ahead, we will continue to build upon the successful expansion and growth of our International business and T2accelerate initiatives to improve our North America business performance. These initiatives include more portfolio innovation and cost optimization activities that aim to stimulate growth and profitability. As a result, for fiscal 2025, we remain confident in our ability to deliver low-single-digit organic revenue growth with core constant currency EPS to be approximately even with the prior year. Our core USD EPS outlook has improved versus our previous expectations as foreign exchange headwinds have moderated, due to the weakening of the U.S. dollar.”

1 Please refer to the Glossary for the definitions of non-GAAP financial measures, including “Organic revenue performance,” “Core” and “Constant currency,” and to “Guidance and Outlook” for additional information regarding PepsiCo’s full-year 2025 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 and 24 weeks ended June 14, 2025 (Q2 2025 Form 10-Q) filed with the Securities and Exchange Commission (SEC) for additional information regarding PepsiCo’s financial results.

1

Summary Second-Quarter 2025 Performance

Revenue

Volume(a)

GAAP Reported

% Change

Percentage Point Impact

Organic

% Change

% Change

Foreign Exchange Translation

Acquisitions and Divestitures

Convenient Foods

Beverages

PepsiCo Foods North America (PFNA)

1

—

(2)

(2)

(1)

PepsiCo Beverages North America (PBNA)

—

—

1

1

(2)

International Beverages Franchise (IB Franchise)

3

2

—

5

1

Europe, Middle East and Africa (EMEA)

8

(2)

—

7

(6)

1

Latin America Foods (LatAm Foods)

(7)

—

6

4

Asia Pacific Foods

1

(1)

—

5

Total

1

—

2

—

Operating Profit and EPS

GAAP Reported % Change

Percentage Point Impact

Core Constant Currency

% Change

Items Affecting Comparability

Foreign Exchange Translation

PFNA

4

—

PBNA

—

—

IB Franchise

7

1

2

9

EMEA

(2)

6

LatAm Foods

—

Asia Pacific Foods

Corporate unallocated expenses

(3)

—

Total

2

(3)

EPS

2

(5)

(a)Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-7, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between bottler case sales (BCS) and concentrate shipments and equivalents (CSE). We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

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 revenue performance,” “Core” and “Constant currency.”

2

Summary Year-to-Date 2025 Performance

Revenue

Volume(a)

GAAP Reported

% Change

Percentage Point Impact

Organic

% Change

% Change

Foreign Exchange Translation

Acquisitions and Divestitures

Convenient Foods

Beverages

PFNA

—

—

(2)

(2)

(1)

PBNA

—

—

1

1

(3)

IB Franchise

3

3

—

6

2

EMEA

5

2

—

7

(7)

(1)

LatAm Foods

(9)

—

5

2

Asia Pacific Foods

(1)

1

(1)

—

4

Total

—

2

—

2

(2)

—

Operating Profit and EPS

GAAP Reported

% Change

Percentage Point Impact

Core Constant Currency

% Change

Items Affecting Comparability

Foreign Exchange Translation

PFNA

(8)

(2)

—

PBNA

—

5

IB Franchise

6

1

3

EMEA

2

8

LatAm Foods

(8)

—

8

Asia Pacific Foods

1

(9)

Corporate unallocated expenses

(4)

—

Total

3

(2)

EPS

3

(a)Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume on net revenue performance disclosed in the Organic Revenue Performance tables on page A-7, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

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 revenue performance,” “Core” and “Constant currency.”

3

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 2025, the Company continues to expect:

•A low-single-digit increase in organic revenue;

•Core constant currency EPS to be approximately even with the prior year;

G1•A core annual effective tax rate of approximately 20 percent; and

G2G3G4•Total cash returns to shareholders of approximately $8.6 billion, comprised of dividends of $7.6 billion and share repurchases of $1.0 billion.

The Company now expects a foreign exchange translation headwind of approximately 1.5-percentage-points to negatively impact reported net revenue and core EPS growth (previously an approximate 3-percentage-point headwind), based on current market consensus rates.

This assumption and the guidance above G5implies a 1.5 percent decline in core EPS in 2025 (previously a 3 percent decline in core EPS) compared to 2024 core EPS of $8.16.

Prepared Management Remarks and Live Question and Answer Webcast

At approximately 6:30 a.m. (Eastern time) on July 17, 2025, the Company will post prepared management remarks (in pdf format) of its second quarter 2025 results and business update, including its outlook for 2025, at https://www.pepsico.com/investors. At 8:15 a.m. (Eastern time) on July 17, 2025, 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 https://www.pepsico.com/investors.

Contacts:

Investor Relations

Communications

investor@pepsico.com

pepsicomediarelations@pepsico.com

4

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Statement of Income

(in millions, except per share amounts, unaudited)

12 Weeks Ended

24 Weeks Ended

Net Revenue

$

$

$

$

Cost of sales

Gross profit

Selling, general and administrative expenses

Impairment of intangible assets (a)

—

—

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

(a)For the 12 and 24 weeks ended June 14, 2025, we recognized charges related to the impairments of our Rockstar and Be & Cheery brands.

A - 1

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(in millions, unaudited)

24 Weeks Ended

Operating Activities

Net income

$

$

Depreciation and amortization

Impairment and other charges

—

Product recall-related impact

—

Cash payments for product recall-related impact

(2)

Operating lease right-of-use asset amortization

Share-based compensation expense

Restructuring and impairment charges

Cash payments for restructuring charges

Pension and retiree medical plan expense

Pension and retiree medical plan contributions

Deferred income taxes and other tax charges and credits

Tax payments related to the Tax Cuts and Jobs Act

Change in assets and liabilities:

Accounts and notes receivable

Inventories

Prepaid expenses and other current assets

Accounts payable and other current liabilities

Income taxes payable

Other, net

Net Cash Provided by Operating Activities

Investing Activities

Capital spending

Sales of property, plant and equipment

Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of intangible and other assets

Divestitures, sales of investments in noncontrolled affiliates and other assets

5

Short-term investments, by original maturity:

More than three months - maturities

—

Three months or less, net

1

Other investing, net

Net Cash Used for Investing Activities

(Continued on following page)

A - 2

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows (continued)

(in millions, unaudited)

24 Weeks Ended

Financing Activities

Proceeds from issuances of long-term debt

Payments of long-term debt

Short-term borrowings, by original maturity:

More than three months - proceeds

More than three months - payments

Three months or less, net

Cash dividends paid

Share repurchases

Proceeds from exercises of stock options

Withholding tax payments on restricted stock units and performance stock units converted

Other financing

Net Cash Provided by/(Used for) Financing Activities

Effect of exchange rate changes on cash and cash equivalents and restricted cash

Net Decrease in Cash and Cash Equivalents and Restricted Cash

Cash and Cash Equivalents and Restricted Cash, Beginning of Year

Cash and Cash Equivalents and Restricted Cash, End of Period

$

$

Supplemental Non-Cash Activity

Right-of-use assets obtained in exchange for lease obligations

$

$

A - 3

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

(in millions, except per share amounts)

(unaudited)

ASSETS

Current Assets

Cash and cash equivalents

$

$

Short-term investments

Accounts and notes receivable, net

Inventories:

Raw materials and packaging

Work-in-process

Finished goods

Prepaid expenses and other current assets

Total Current Assets

Property, Plant and Equipment, net

Amortizable Intangible Assets, net

Goodwill

Other Indefinite-Lived Intangible Assets

Investments in Noncontrolled Affiliates

Deferred Income Taxes

Other Assets

Total Assets

$

$

LIABILITIES AND EQUITY

Current Liabilities

Short-term debt obligations

$

$

Accounts payable and other current liabilities

Total Current Liabilities

Long-Term Debt Obligations

Deferred Income Taxes

Other Liabilities

Total Liabilities

Commitments and contingencies

PepsiCo Common Shareholders’ Equity

Common stock, par value 12/3¢ per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,370 and 1,372 shares, respectively)

Capital in excess of par value

Retained earnings

Accumulated other comprehensive loss

Repurchased common stock, in excess of par value (496 and 495 shares, respectively)

Total PepsiCo Common Shareholders’ Equity

Noncontrolling interests

Total Equity

Total Liabilities and Equity

$

$

A - 4

Non-GAAP Measures

In discussing financial results and guidance, the Company refers to the following measures which are not in accordance with U.S. Generally Accepted Accounting Principles (GAAP): organic revenue performance, core results and core constant currency results. We use non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance and as a factor in determining compensation for certain employees. We believe presenting non-GAAP financial measures provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results and provides additional transparency on how we evaluate our business. We also believe presenting these measures allows investors to view our performance using the same measures that we use in evaluating our financial and business performance and trends.

We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Examples of items for which we may make adjustments include: amounts related to mark-to-market gains or losses (non-cash); charges related to restructuring plans; charges associated with acquisitions and divestitures; gains associated with divestitures; asset impairment charges (non-cash); product recall-related impact; pension and retiree medical-related amounts, including all settlement and curtailment gains and losses; charges or adjustments related to the enactment of new laws, rules or regulations, such as tax law changes; amounts related to the resolution of tax positions; tax benefits related to reorganizations of our operations; debt redemptions, cash tender or exchange offers; and remeasurements of net monetary assets. See below for a description of adjustments to our GAAP financial measures included herein.

Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

Glossary

We use the following definitions when referring to our non-GAAP financial measures, which may not be the same as or comparable to similar measures presented by other companies:

Acquisitions and divestitures: mergers and acquisition activity, as well as divestitures and other structural changes, including changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees.

Bottler case sales (BCS): Measure of physical beverage volume shipped to retailers and independent distributors from both PepsiCo and our independent bottlers.

Concentrate shipments and equivalents (CSE): Measure of our physical beverage volume shipments to independent bottlers.

Constant currency: Financial results assuming constant foreign currency exchange rates used for translation based on the rates in effect for the comparable prior-year period. In order to compute our constant currency results, we multiply or divide, as appropriate, our current-year U.S. dollar results by the current-year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. Beginning with our first quarter of 2025, on a prospective basis, we are also applying the constant currency calculation for our subsidiaries operating in highly inflationary economies.

Core: Core results are non-GAAP financial measures which exclude certain items from our financial results. For further information regarding these excluded items, refer to “Items Affecting Comparability” in “Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Q2 2025 Form 10-Q and in “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Exhibit 99.2 to our separate Current Report on Form 8-K dated July 17, 2025, in which we recast historical segment reporting to reflect our current organizational structure. For the periods presented, core results exclude the following items:

Mark-to-market net impact

Mark-to-market net gains and losses on commodity derivatives in corporate unallocated expenses. These gains and losses are subsequently reflected in segment results when the segments recognize the cost of the underlying commodity in operating profit.

Restructuring and impairment charges

Expenses related to the multi-year productivity plan publicly announced in 2019 (2019 Productivity Plan), which was expanded and extended through the end of 2030 to take advantage of additional opportunities within the initiatives of the plan.

Acquisition and divestiture-related charges

Acquisition and divestiture-related charges primarily include transaction expenses, such as consulting, advisory and other professional fees, and merger and integration charges. Merger and integration charges include distribution agreement termination fees, employee-related costs, closing costs and other integration costs.

A - 5

Impairment and other charges

We recognized impairment charges as a result of our quantitative assessments of certain of our indefinite-lived intangible assets, primarily related to the Rockstar and Be & Cheery brands. In addition, we recognized charges related to the impairment of our investment in Tropicana Brands Group (TBG) and recorded allowance for expected credit losses related to outstanding receivables from TBG associated with the sale of Tropicana, Naked and other select juice brands.

Product recall-related impact

We recognized property, plant and equipment and inventory write-offs, employee severance costs, product returns, customer and consumer-related costs and other costs in our PFNA segment associated with a previously announced voluntary recall of certain bars and cereals.

Indirect tax impact

We recognized additional expenses related to an indirect tax reserve in our IB Franchise segment.

Pension and retiree medical-related impact

Pension and retiree medical-related impact primarily includes settlement charges due to lump sum distributions to retired or terminated employees and the purchase of a group annuity contract whereby a third-party insurance company assumed the obligation to pay and administer future benefit payments for certain retirees. The settlement charge was triggered when the aggregate of the cumulative lump sum distributions and the annuity contract premium exceeded the total annual service and interest costs. Pension and retiree medical-related impact also includes curtailment gains and losses due to restructuring actions as part of our 2019 Productivity Plan.

Effective net pricing: Reflects the year-over-year impact of discrete pricing actions, sales incentive activities and mix resulting from selling varying products in different package sizes and in different countries.

Organic revenue performance: A measure that adjusts for the impacts of foreign exchange translation (on a constant currency basis, as defined above), acquisitions and divestitures, and every five or six years, the impact of an additional week of results. Beginning with our first quarter of 2025, on a prospective basis, we are also applying the constant currency calculation for our subsidiaries operating in highly inflationary economies. We believe organic revenue performance provides useful information in evaluating the results of our business because it adjusts for items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior year.

Our 2025 organic revenue performance guidance adjusts for the impacts of foreign exchange translation (on a constant currency basis, as defined above) and acquisitions and divestitures. Our 2025 core effective tax rate guidance and our 2025 core constant currency EPS growth guidance exclude the mark-to-market net impact included in corporate unallocated expenses, restructuring and impairment charges and other items noted above. Our 2025 core constant currency EPS growth guidance also excludes the impact of foreign exchange translation. We are unable to reconcile our full year projected 2025 organic revenue growth to our full year projected 2025 reported net revenue growth because we are unable to predict the 2025 impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates and because we are unable to predict the occurrence or impact of any acquisitions, divestitures or other structural changes.

We are also not able to reconcile our full year projected 2025 core effective tax rate to our full year projected 2025 reported effective tax rate and our full year projected 2025 core constant currency EPS growth to our full year projected 2025 reported EPS growth because we are unable to predict the 2025 impact of foreign exchange or the mark-to-market net impact on commodity derivatives due to the unpredictability of future changes in foreign exchange rates and commodity prices. Therefore, we are unable to provide a reconciliation of these measures.

A - 6

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information

Organic Revenue Performance

(dollars in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Total

Reported Net Revenue, GAAP measure

$

$

$

$

$

$

$

Impact of foreign exchange translation (a)

8

8

6

Impact of acquisitions and structural changes

(2)

—

(9)

Organic Revenue, non-GAAP measure (b)

$

$

$

$

$

$

$

Prior Year Reported Net Revenue, GAAP measure

$

$

$

$

$

$

$

Reported Net Revenue % Change, GAAP measure

1

—

3

8

(7)

1

Impact of foreign exchange translation

—

—

2

(2)

1

Impact of acquisitions and divestitures

(2)

1

—

—

—

(1)

—

Organic Revenue % Change, non-GAAP measure (c)

(2)

1

5

7

6

—

2

Impact on % Change of:

Organic volume change (d)

(4)

1

(4)

4

6

Effective net pricing

—

4

2

(6)

4

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Total

Reported Net Revenue, GAAP measure

$

$

$

$

$

$

$

Impact of foreign exchange translation (a)

Impact of acquisitions and structural changes

(4)

—

Organic Revenue, non-GAAP measure (b)

$

$

$

$

$

$

$

Prior Year Reported Net Revenue, GAAP measure

$

$

$

$

$

$

$

Reported Net Revenue % Change, GAAP measure

—

—

3

5

(9)

(1)

—

Impact of foreign exchange translation

—

—

3

2

1

2

Impact of acquisitions and divestitures

(2)

1

—

—

—

(1)

—

Organic Revenue % Change, non-GAAP measure (c)

(2)

1

6

7

5

—

2

Impact on % Change of:

Organic volume change (d)

(2)

(3)

3

(6)

2

5

(2)

Effective net pricing

—

3

3

3

(5)

3

(a)Represents the adjustment needed to reflect translation of revenue using prior-year period foreign currency exchange rates.

(b)Represent underlying amounts, not in accordance with GAAP, used in the calculation of Organic Revenue Performance, which is a financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(c)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(d)Excludes the impact of acquisitions and divestitures. In certain instances, the impact of organic volume change on net revenue performance differs from the unit volume change disclosed in the Summary Second-Quarter 2025 Performance table and Summary Year-to-Date Performance on pages 2 and 3, respectively, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

Note – Amounts may not sum due to rounding.

A - 7

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment

(dollars in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Corporate Unallocated Expenses

Total

Reported Cost of Sales, GAAP measure

$

$

$

$

$

$

$

2

$

Mark-to-market net impact

—

—

—

—

—

—

(2)

(2)

Restructuring and impairment charges

(7)

—

(3)

—

—

—

Core Cost of Sales, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

Gross Margin

Reported Gross Profit, GAAP measure

$

$

$

$

$

$

$

(2)

$

%

Mark-to-market net impact

—

—

—

—

—

—

2

2

—

Restructuring and impairment charges

7

—

3

—

—

—

Core Gross Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

%

Reported Selling, General and Administrative Expenses, GAAP measure

$

$

$

$

$

$

$

$

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

1

(3)

(3)

Acquisition and divestiture-related charges

(6)

—

—

—

—

—

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Reported Impairment of Intangible Assets, GAAP measure

$

—

$

$

—

$

$

—

$

$

—

$

Impairment and other charges

—

—

—

—

Core Impairment of Intangible Assets, non-GAAP measure (a)

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Operating Margin

Reported Operating Profit, GAAP measure

$

$

$

$

$

$

$

$

%

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

3

3

Acquisition and divestiture-related charges

6

—

—

—

—

—

Impairment and other charges

—

—

—

—

Core Operating Profit, non-GAAP measure (a)

%

Impact of foreign exchange translation (b)

1

2

(1)

—

Core Constant Currency Operating Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Reported Operating Profit % Change, GAAP measure

7

—

Core Operating Profit % Change, non-GAAP measure (a)

—

7

9

(1)

(5)

Core Constant Currency Operating Profit % Change, non-GAAP measure (a)

—

9

6

(3)

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(b)Represents the adjustment needed to reflect translation of operating profit using prior-year period foreign currency exchange rates.

Note – Amounts may not sum due to rounding.

A - 8

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment (continued)

(in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Corporate Unallocated Expenses

Total

Reported Cost of Sales, GAAP measure

$

$

$

$

$

$

$

$

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

—

—

—

1

(1)

—

—

—

Product recall-related impact

(8)

—

—

—

—

—

—

(8)

Core Cost of Sales, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

Gross Margin

Reported Gross Profit, GAAP measure

$

$

$

$

$

$

$

$

%

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

—

—

—

(1)

1

—

—

—

—

Product recall-related impact

8

—

—

—

—

—

—

8

—

Core Gross Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

%

Reported Selling, General and Administrative Expenses, GAAP measure

$

$

$

$

$

$

$

$

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

(5)

—

(4)

(6)

Product recall-related impact

(7)

—

—

—

—

—

—

(7)

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Operating Margin

Reported Operating Profit, GAAP measure

$

$

$

$

$

$

$

$

%

Mark-to-market net impact

—

—

—

—

—

—

(8)

(8)

—

Restructuring and impairment charges

5

—

4

6

Product recall-related impact

—

—

—

—

—

—

Core Operating Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

$

%

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

Note – Amounts may not sum due to rounding.

A - 9

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment (continued)

(in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Corporate Unallocated Expenses

Total

Reported Cost of Sales, GAAP measure

$

$

$

$

$

$

$

(9)

$

Mark-to-market net impact

—

—

—

—

—

—

9

9

Restructuring and impairment charges

(7)

—

(4)

—

—

—

Core Cost of Sales, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

Gross Margin

Reported Gross Profit, GAAP measure

$

$

$

$

$

$

$

9

$

%

Mark-to-market net impact

—

—

—

—

—

—

(9)

(9)

—

Restructuring and impairment charges

7

—

4

—

—

—

Core Gross Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

%

Reported Selling, General and Administrative Expenses, GAAP measure

$

$

$

$

$

$

$

$

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

(5)

(4)

Acquisition and divestiture-related charges

—

—

—

—

—

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Reported Impairment of Intangible Assets, GAAP measure

$

—

$

$

—

$

$

—

$

$

—

$

Impairment and other charges

—

—

—

—

Core Impairment of Intangible Assets, non-GAAP measure (a)

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Operating Margin

Reported Operating Profit, GAAP measure

$

$

$

$

$

$

$

$

%

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

5

4

Acquisition and divestiture-related charges

—

—

—

—

—

Impairment and other charges

—

—

—

—

Core Operating Profit, non-GAAP measure (a)

%

Impact of foreign exchange translation (b)

6

4

3

—

Core Constant Currency Operating Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Reported Operating Profit % Change, GAAP measure

(8)

6

(8)

Core Operating Profit % Change, non-GAAP measure (a)

5

7

6

(8)

(5)

Core Constant Currency Operating Profit % Change, non-GAAP measure (a)

5

8

8

(9)

(2)

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(b)Represents the adjustment needed to reflect translation of operating profit using prior-year period foreign currency exchange rates.

Note – Amounts may not sum due to rounding.

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment (continued)

(in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Corporate Unallocated Expenses

Total

Reported Cost of Sales, GAAP measure

$

$

$

$

$

$

$

$

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

(4)

—

—

1

(3)

—

—

(6)

Product recall-related impact

—

—

—

—

—

—