PepsiCo surprises with lowered guidance

PepsiCo warned investors on Friday that earnings looked set to fall in its current trading year as it looks to up its investment into its products.

Adjusted earnings per share of $1.49 and revenues of $19.52bn came bang in line with analysts' expectations in its recently wrapped up trading year, but the soft drinks giant said forecast a 1% decline in core EPS for its current trading year, excluding currency shifts, along with a slowdown in sales growth.

Pepsi now expects to pill in $5.50 per share in 2019, down from the $5.66 recorded in 2018 and well below the $5.86 projected by analysts on the Street.

Pepsi singled out an increased tax rate and currency headwinds as causes for the weak outlook and noted that earnings in its previous year had been boosted by selling assets.

The Nasdaq constituent plans to make 2019 "a year of substantial investment," as it looks to increase its marketing and advertising budget, particularly on its Gatorade, Pepsi and Mountain Dew products.

Pepsi's snack business saw some continued strong trading, with Frito-Lay turning in a 4% organic revenue growth in North America.

The North Carolina-based outfit also revealed that it would increase its dividend by 3% to $3.82, beginning in June.

As of 1300 GMT, PepsiCo shares had picked up 1.74% to $114.55 each.