17.07.2024
News
PepsiCo raises outlook as quarterly results beat expectations
On Tuesday, PepsiCo improved its forecasts for the year, posting profits and revenue that exceeded expectations.
The company’s shares rose more than 2% on Tuesday, hitting a new 52-week high.
Here’s what the company reported versus what Wall Street expected, based on a survey of Refinitiv analysts:
Earnings per share: $1.50 adjusted vs. $1.39 expected
Revenue: $17.85 billion vs. $17.22 billion as forecast
For the period ended March 25, PepsiCo reported net income of $1.93 billion, or $1.40 per share, compared to $4.26 billion, or $3.06 per share, in the same period last year. Excluding one-off items, the company earned $1.50 per share.
Net sales increased by 10.2% to $17.85 billion. Organic revenue, which excludes the impact of acquisitions and divestitures, grew by 14.3%.
Sales volumes increased by 1% in PepsiCo’s beverage business, while in the food segment they decreased by 3%. Overall, sales volumes were down 2% across all categories, while prices were up 16%.
Frito-Lay North America reported organic revenue growth of 16%, driven by market share gains and double-digit net revenue growth in key brands such as Lay’s, Doritos and Cheetos, as well as brands such as Sun Chips and PopCorners.
PepsiCo Beverages North America’s organic revenue increased by 12%, with Pepsi posting double-digit net revenue growth and brands such as Gatorade and Aquafina showing high single-digit net revenue growth.
“Our intention is not to build a large product portfolio or a complex portfolio, but to focus on a few good brands, grow them with strategic partners, and then leverage our distribution capabilities,” said CFO Hugh Johnston during a conference call with analysts.
The company expects its organic revenue for 2023 to grow by 8%, up from 6%, and basic earnings per share in constant currency to increase by 9%, up from 8%.
Earlier this month, the company also set a goal to make 100% of its packaging recyclable, compostable, biodegradable or reusable by 2025.
“It’s challenging, it’s not easy, but I can tell you that we are fully committed to that goal,” said Steven Williams, CEO of PepsiCo Foods North America, at the time.