(CTN News) – In a statement released on Tuesday, PepsiCo reported earnings and revenue that exceeded analysts’ expectations for the first quarter, and raised its outlook for the full year.
The company’s shares rose by 2% in premarket trading on Thursday morning.
According to a survey of analysts by LSEG, formerly known as Refinitiv,
The following is what the PepsiCo company reported compared with what Wall Street had expected:
It is expected that earnings per share will be $2.25 adjusted versus $2.15 expected
Compared with expectations of $23.39 billion, revenue for this quarter was $23.45 billion
In 2023, Pepsi is now forecasting constant currency earnings per share growth of 13%, up from its previous forecast of 12% for 2023. As a result, the snacking and beverage giant has increased its full-year forecast for the third consecutive quarter.
According to the company, PepsiCo third-quarter net income attributable to the company was $3.09 billion, or $2.24 per share, up from $2.7 billion, or $1.95 per share, in the third quarter last year.
As a result, the company earned $2.25 per share when excluding the items mentioned above.
In terms of net sales, they increased by 6.7% to $23.45 billion. In the third quarter of the year, the company’s organic revenue, excluding acquisitions and divestitures, increased by 8.8%.
As a result, PepsiCo’s volume, which excludes the effect of price changes and currency changes, dropped again this quarter.
Due to Pepsi’s price hikes to mitigate inflation, the demand for its products has been weakened as a result. Pepsi executives also told analysts on a conference call that the company has been shrinking portion sizes and making smaller value packs in order to drive more sales.
As a result of this strategy, consumers have more PepsiCo affordable options – and lower volume sales are generated as a result.
Pepsi’s North American beverages unit reported volume declines of 6% in its North American market. In order to preserve margins within the company, Ramon Laguarta, the company’s CEO, announced that some promotions have been pruned, including those for its bottled water business.
These deals, however, resulted in higher volume for the drinks, gains that would not have been possible without them.
There were some bright spots in the beverage industry. In the case of Gatorade, for instance, revenue grew by double digits. Taco Bell also plans to relaunch Mountain Dew Baja Blast, one of the company’s most popular flavors.
Food divisions in North America performed better than beverages. The volume of Quaker Foods North America increased by 1%, while that of Frito-Lay North America was unchanged.
Additionally, Quaker Foods’ brands have gained market share in key categories such as pancake mix and syrup, according to prepared remarks.
In 2024, Pepsi expects organic revenue growth to be in the PepsiCo range of 4% to 6% and core constant currency earnings per share growth to be in the high single digits.