Pepsi bottles with new and old logos can be seen in grocery stores in Las Vegas, USA, on November 17, 2023.
Jakub Bolzycki | Noor Photos | Getty Images
Pepsi report Quarterly results were mixed on Thursday as demand for its beverages and snacks fell in North America.
The company also narrowed its full-year revenue forecast. PepsiCo now expects organic revenue growth of about 4%, which is more cautious than its previous forecast of at least 4%. The company reiterated its guidance for core constant currency profit growth of at least 8%.
“When we say at least 4 (percent), we’re talking more about about 5 percent,” Chief Executive Ramon Laguarta told analysts on the company’s conference call. “Now we’re talking about 5 percent or so. It’s around 4…it’s particularly relevant to American consumers”
The company’s shares fell more than 1% in early trading.
Here’s how PepsiCo’s quarterly report for the quarter ended June 15 compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: Adjusted $2.28, expected $2.16
- income: $22.5 billion vs. $22.57 billion expected
PepsiCo reported second-quarter net income attributable to the company of $3.08 billion, or $2.23 per share, up from $2.75 billion, or $1.99 per share, in the same period last year.
Excluding items, the company earned $2.28 per share.
Net sales grew nearly 1% to $22.5 billion. The company’s organic revenue (excluding acquisitions, divestitures and currency changes) for the quarter grew 1.9%, driven by PepsiCo’s international business.
But the company has struggled in the domestic market, hurt by product recalls and shrinking demand for its products.
administration staff say in prepared remarks Consumers have become more value-oriented. After several years of rising prices, Shoppers are boycotting By buying fewer bags of crisps or switching to cheaper private label options. Before, PepsiCo executives said Low-income consumers are having the hardest time, but Laguarta said on a conference call Thursday that shoppers at all income levels are changing their shopping behaviors.
Frito-Lay North America’s sales fell 4%, while sales at PepsiCo’s North American beverage division fell 3%. This metric strips out pricing and currency changes to reflect demand.
Sales of PepsiCo’s North American beverages have continued to improve, executives said, a sign that its efforts to lure consumers back are starting to pay off. The company relies on higher-margin packaging and products, as well as in-store promotions on its biggest brands, to attract frugal consumers, particularly the Frito-Lay brand, which includes Cheetos and Doritos.
“Some of the things we’ve been doing are starting to take shape, and the Fourth of July is very important to us,” Laguarta said.
Quaker Foods North America’s sales fell 17% in the quarter as the unit is still dealing with the impact of potential salmonella contamination recalls issued in December and January. PepsiCo expects sales in the segment to improve in the second half of the year.
