Sweet and Salty PepsiCo: Fool by Numbers

On April 25, food and beverage powerhouse PepsiCo (NYSE: PEP  ) released first-quarter earnings for the period ended March 24.

• Revenue was up by 9.4% and earnings per share by 16%.
• Gross margin was negatively impacted by higher raw material and energy costs.
• The PepsiCo International segment increased profits by 29% on "strong snack and beverage growth."
• Read this Foolish take for analysis on PepsiCo's results. Also be sure to check Motley Fool CAPS for bull and bear pitches on the company and competitors like Coca-Cola (NYSE: KO  ) and Kraft (NYSE: KFT  ) .

(Figures in millions, except per-share data)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$7,350	$6,719	9.4%
Net Profit	$1,096	$947	15.7%
EPS	$0.65	$0.56	16.1%
Diluted Shares	1,673	1,695	(1.3%)

Get back to basics with the income statement.

Margin Checkup

	Q1 2007	Q1 2006	Change*
Gross	55.3%	55.9%	(0.6)
	19.3%	18.7%	0.6
	14.9%	14.1%	0.8

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$1,737	$3,329	(47.8%)
Accounts Rec.	$4,123	$3,634	13.5%
Inventory	$2,074	$1,881	10.3%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$6,207	$5,587	11.1%
Long-Term Debt	$1,807	$2,288	(21.0%)

The balance sheet reflects the company's health.

Cash Flow Highlights

	Q1 2007	Q1 2006	Change
Cash From Ops.	$626	$173	261.8%
Capital Expenditures	$267	$289	(7.6%)
Free Cash Flow	$359	($116)	N/A

Free cash flow is a Fool's best friend.

Related Foolishness:

• The Ultimate Rule Maker: Coca-Cola  
• Is Coke Still The Real Thing?

Coca-Cola is a Motley Fool Inside Value recommendation. Kraft Foods is a Motley Fool Income Investor recommendation. Try any one of our investing services free for 30 days.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.