PepsiCo on Thursday disclosed quarterly earnings and revenue exceeding analysts’ predictions as its challenged North American food sector reported a revival in volume growth.
The company’s shares declined slightly in premarket transactions.
Here’s how the company’s figures compared with Wall Street’s expectations, based on a survey conducted by LSEG:
- Earnings per share: $1.61 adjusted vs. $1.55 forecasted
- Revenue: $19.44 billion vs. $18.94 billion anticipated
Pepsi reported first-quarter net profit attributable to the organization of $2.33 billion, or $1.70 per share, up from $1.83 billion, or $1.33 per share, from a year prior.
Excluding certain items like restructuring and divestitures, the company earned $1.61 per share.
Net sales increased by 8.5% to $19.44 billion. Pepsi’s organic revenue, excluding acquisitions, divestitures, and currency variances, rose 2.6%.
For the first time in over two years, Pepsi’s North American food division registered an increase in volume. This segment, comprising its North American Frito-Lay and Quaker Oats divisions, faced resistance from consumers due to significant price hikes when inflation surged in 2022. In February, Pepsi reduced prices on Lay’s, Tostitos, Doritos, and Cheetos by as much as 15% to attempt to regain shoppers.
Pepsi’s North American food sector reported a 2% growth in volume for the quarter. This statistic excludes pricing and currency exchange impacts to reflect demand more precisely.
The company’s North American beverage division noted a 2.5% decline in volume.
For the whole year, Pepsi reaffirmed its earlier projection that organic revenue would rise between 2% and 4% and core constant currency earnings per share would grow within a 4% to 6% range.
