Purchase, N.Y.-based PepsiCo Inc. reported results for the fourth quarter and full year 2017.

“We are pleased with our performance for the fourth quarter and full year 2017. We met or exceeded most of the financial goals we set out at the beginning of the year. We delivered these results in the midst of a dynamic retail environment and rapidly shifting consumer landscape,” said Indra Nooyi, chairman and chief executive officer, in a statement.

“The provisions of recently enacted tax legislation are expected to result in lower income taxes in 2018 for our operations in the United States, our largest market,” she continued. “We expect the benefits of the [Tax Cuts and Jobs] Act will enable us to further strengthen our business by enhancing the skills of our front-line associates to ready them for the future; adding new digital and eCommerce capabilities to become more competitive; accelerating capital investments to add manufacturing capacity and make our operations more efficient; and enhancing cash returns to our shareholders over time.

“As a reflection of our confidence in the growth prospects for our business, we expect to deliver 9 percent growth in core constant currency earnings per share in 2018 and we announced today a 15 percent increase in our annualized dividend per share beginning with the June 2018 payment, representing our 46th consecutive annual increase,” she added.

For the fourth quarter, the company reported that net revenue was even with the prior year. Organic revenue, which excludes impact of foreign exchange translation, structural changes and the 53rd reporting week in the prior year, grew 2.3 percent, it says.

Reported gross margin contracted 65 basis points, and core gross margin contracted 50 basis points. Reported operating margin expanded 110 basis points, and core operating margin expanded 90 points, it reports.

Reported operating profit increased 9 percent, and core constant currency operating profit increased 6 percent. Items impacting reported operating profit included a pension-related settlement charge in the prior year, which contributed 14 percentage points to reported operating profit growth, partially offset by higher restructuring charges and commodity mark-to-market impacts, which reduced reported operating profit growth by 10 percentage points and 2 percentage points, respectively, the company says.

In addition, a gain from the refranchising of its bottling operations in Jordan (Jordan refranchising gain) contributed 6 percentage points. The benefit from the 53rd reporting week in the prior-year period was offset by incremental investments, it says. Foreign currency translation increased reported operating profit growth by 1 percentage point.

In the fourth quarter, the North America Beverages (NAB) division was negatively impacted by higher raw material costs, operating cost inflation, restructuring charges, the 53rd reporting week in the prior year and hurricane-related costs, the company says. These impacts were partially offset by productivity gains, prior-year incremental investments and lower advertising and marketing expenses, it adds.

For the full year, PepsiCo Inc. reported that net revenue increased 1.2 percent. Organic revenue, which excludes the impact of foreign exchange translation, structural changes and the 53rd reporting week in the prior year, grew 2.3 percent, the company says.

Reported gross margin contracted 40 basis points and core gross margin contracted 30 basis points, the company reports. Reported operating margin expanded 95 basis points, and core operating margin expanded 45 basis points. Reported operating margin expansion reflects the impacts of the prior-year charge related to the transaction with Tingyi and the pension-related settlement charge, it says. Reported and core operating margin expansions reflect the Jordan refranchising gain in the fourth quarter and a gain associated with the sale of PepsiCo Inc.’s minority stake in Britvic plc (Britvic gain) in the second quarter of 2017.

Reported operating profit increased 7 percent and core constant currency operating profit increased 5 percent. The impacts of the charge related to the transaction with Tingyi and a pension-related settlement charge, both in the prior year, contributed 4 percentage points and 3 percentage points, respectively, to reported operating profit growth, it says. Higher commodity mark-to-market impacts and restructuring charges reduced reported operating growth by 2 percentage points and 1.5 percentage points, respectively, it adds. Unfavorable foreign exchange translation reduced reported operating profit growth by 1 percentage point.

In the full year, PepsiCo NAB was negatively impacted by operating cost inflation, higher raw material costs, the 53rd reporting week in the prior year and hurricane-related costs, the company says. These impacts were partially offset by productivity gains, lower advertising and marketing expenses, prior-year incremental investments and a gain associated with the sale of an asset, it adds.

Looking ahead, in 2018, the company expects full-year organic revenue growth to be at least in-line with the 2017 growth rake, it says.