Frito-Lay Full-year Revenue Climbs 4.5%

Operating profit in the Frito-Lay North America segment grew 5% for the year and 3% for the quarter, reflecting productivity savings and net revenue growth, which were partially offset by operating cost increases and higher advertising and marketing expenses. Segment revenue increased 4.5% for the year and 3% for the quarter, according to a company release.

“Frito's results were driven by the investments we made in innovation, marketing and consumer insights, supply chain and manufacturing and go-to-market capacity,” said said Ramon L. Laguarta, chairman and chief executive officer. “This included a double-digit increase in advertising and marketing spend, additional plant, warehouse and distribution center capacity, and additional routes, racks and selling resources. Frito delivered net revenue growth in all of its large mainstream brands like Lay’s, Doritos, Tostitos, Cheetos, Ruffles and Fritos and double-digit growth in emerging premium brands such as Bare and Off the Eaten Path. Our multipack offerings also delivered very good growth as we have continuously expanded the variety of brand and flavor combinations,” he added.