The Bašumi Trust, established by PepsiCo South Africa as part of its acquisition of Pioneer Foods, has delivered its third annual dividend payout to nearly 10 000 qualifying beneficiaries.
This latest disbursement amounts to R28.6 million, bringing total payments since the Trust's inception to nearly R80 million, it said in a statement on Monday.
Established in 2021, the Bašumi Trust is a R1.65 billion Broad-Based Black Economic Empowerment (B-BBEE) employee share ownership scheme. It was created as part of PepsiCo’s Public Interest Commitments to the South African government following its acquisition of Pioneer Foods in 2020.
Under its terms, 50% of the dividends received from PepsiCo shares over the four quarters of 2024—after tax deductions—are distributed among the beneficiaries.
PepsiCo South Africa CEO Riaan Heyl said, "Beneficiaries of the Bašumi Trust who have been part of the Trust since its inception will also receive their inaugural milestone payment at the end of this year, which is estimated to be in the region of R30 000, less tax per beneficiary."
According to the rules of the Bašumi Trust, the annual dividend payment is a distribution of 50% of the dividends received from PepsiCo Inc. for the four quarters of the previous financial year, less tax.
Commenting on the company’s earnings results released on February 4, PepsiCo chairman and CEO Ramon Laguarta said, "Our businesses remained resilient in 2024, despite subdued category performance trends in North America and disruptions in certain international markets due to geopolitical tensions."
PepsiCo’s beverage and convenient foods portfolio includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. In South Africa the company’s brands include White Star, SASKO, Simba, Liqui Fruit, Bokomo, Weet-Bix and Lay’s.
PepsiCo’s international business delivered 6% organic revenue growth in 2024, or 9% on a two-year compounded basis. The company’s $37 billion (R682bn) international business accounted for nearly 40% of its total net revenue for the year.
Looking ahead to 2025, Laguarta said PepsiCo aims to continue expanding its international operations while implementing measures to improve performance in North America. The company expects low single-digit organic revenue growth and mid-single-digit core constant currency earnings per share growth in 2025. Additionally, PepsiCo has announced a 5% increase in its dividend, effective from the June 2025 payment—marking the 53rd consecutive annual increase.
Heyl expressed satisfaction with the contribution of South Africa to the company’s overall performance.
“It is encouraging to see that South Africa contributed high single-digit growth to the overall performance, despite the current macro-economic challenges in our country, and that the beneficiaries of our Bašumi Trust continue to benefit from the construct of the Trust with shares held in PepsiCo” he said.
BUSINESS REPORT