Frito-Lay North America (FLNA) has recorded a strong growth, according to the financial report issued by PepsiCo.

For the fourth quarter of 2018, the operating profit grew 8%, from USD1.40bn to USD1.51bn, reflecting net revenue growth and productivity savings, partially offset by certain operating cost increases. When it comes to the results for the full-year 2018, FLNA recorded an operating profit growth of 4.5%, from USD4.79bn to USD5bn. This primarily reflects net revenue growth and productivity savings, which partially offset certain operating cost increases and a 1-percentage-point impact of a bonus extended to certain U.S. employees, PepsiCo explains.

“We are pleased with our results for the fourth quarter and the full year 2018. For the year we met or exceeded each of the financial objectives we set out at the beginning of the year. Frito-Lay North America and each of our international sectors performed very well,” said chairman and CEO Ramon Laguarta.

He also admitted that foreign exchange has impacted the performance, but the forecast looks promising.

“While adverse foreign exchange translation negatively impacted reported net revenue performance, our underlying organic revenue growth accelerated in the second half, and we ended the year with 4.6% organic revenue growth in the fourth quarter. Furthermore, we are excited about the outlook for our business. We are well positioned in large, growing categories and have developed strong and relevant capabilities over the years. In 2019, we aim to capitalize on the momentum we have as we enter the year, and to continue to invest in the capabilities that will better position us for success for years to come,” PepsiCo CEO said.

For 2019, the company expects 4% organic revenue growth and approximately 1% decline in core constant currency Earnings Per Share. “Our 2019 EPS performance is expected to be impacted by incremental investments that are intended to further strengthen the business, lapping a number of 2018 strategic asset sale and refranchising gains and an increased core effective tax rate in 2019. Importantly, we expect to return to high-single-digit core constant currency EPS growth in 2020,” Laguarta added.