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 earnings growth of at least 8%.
The company’s shares fell more than 1% in premarket 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, $2.16 expected
- Revenue: $22.5 billion, $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. After several years of rising prices, consumers are buying less bags of chips or switching to cheaper private label options. Last quarter, executives said low-income shoppers were having an especially tough time.
Frito-Lay North America’s sales fell 4%, while sales at PepsiCo’s North American beverage unit fell 3%. This metric strips out pricing and currency changes to reflect demand.
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.
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