PepsiCo, the multinational food and beverage company, has reported strong quarterly earnings and revenue that exceeded analysts’ expectations. The company also raised its full-year outlook, leading to a rise in its shares by more than 2% in premarket trading.
According to a survey of analysts by Refinitiv, PepsiCo’s adjusted earnings per share for the second quarter were $2.09, surpassing the expected $1.96. The company’s revenue for the quarter was $22.32 billion, higher than the anticipated $21.73 billion.
PepsiCo’s net income attributable to the company for the second quarter was $2.75 billion, or $1.99 per share, compared to $1.43 billion, or $1.03 per share, in the same period last year. Excluding certain items, the beverage giant earned $2.09 per share.
The company experienced a 10.4% increase in net sales, reaching $22.32 billion. PepsiCo’s organic revenue, which excludes the impact of acquisitions and divestitures, rose by an impressive 13% in the quarter.
However, despite the overall positive results, PepsiCo faced a decline in volume due to higher prices for its snacks and drinks, which negatively impacted demand. The volume for Pepsi’s food divisions dropped by 3%, while its beverages saw a 1% decrease. Quaker Foods North America experienced a 5% decline in volume, and Pepsi’s North American beverage unit reported a 4.5% decrease. On the other hand, Frito-Lay North America was a bright spot, with a 1% increase in volume.
Looking ahead, PepsiCo has revised its outlook for 2023. The company now expects a 10% organic revenue growth, up from its previous forecast of 8%. Additionally, PepsiCo has raised its core constant currency earnings outlook to 12% growth, compared to the previous expectation of 9%.
These positive results and revised outlook demonstrate PepsiCo’s ability to navigate challenges in the market and continue to deliver strong financial performance. The company’s focus on organic revenue growth and its diverse portfolio of products position it well for future success.
What factors contributed to PepsiCo’s strong financial performance and revised outlook for the future
PepsiCo, the multinational food and beverage company, has exceeded analysts’ expectations with strong quarterly earnings and revenue. As a result, the company’s shares rose by more than 2% in premarket trading, and it has also raised its full-year outlook.
According to a survey of analysts, PepsiCo’s adjusted earnings per share for the second quarter were $2.09, higher than the expected $1.96. The company’s revenue for the quarter was $22.32 billion, surpassing the anticipated $21.73 billion.
PepsiCo’s net income attributable to the company for the second quarter was $2.75 billion, or $1.99 per share, compared to $1.43 billion, or $1.03 per share, in the same period last year. Excluding certain items, the company earned $2.09 per share.
The company experienced a 10.4% increase in net sales, reaching $22.32 billion. PepsiCo’s organic revenue, which excludes the impact of acquisitions and divestitures, rose by an impressive 13% in the quarter.
However, PepsiCo faced a decline in volume due to higher prices for its snacks and drinks, which impacted demand. The volume for Pepsi’s food divisions dropped by 3%, while its beverages saw a 1% decrease. Quaker Foods North America experienced a 5% decline in volume, and Pepsi’s North American beverage unit reported a 4.5% decrease. On the other hand, Frito-Lay North America saw a 1% increase in volume.
Looking ahead, PepsiCo has revised its outlook for 2023, now expecting a 10% organic revenue growth, up from the previous forecast of 8%. The company has also raised its core constant currency earnings outlook to 12% growth, compared to the previous expectation of 9%.
These positive results and revised outlook highlight PepsiCo’s ability to navigate market challenges and deliver strong financial performance. With a focus on organic revenue growth and a diverse portfolio of products, the company is well-positioned for future success.
Great news for PepsiCo! Their strong quarterly earnings have not only surpassed expectations but also resulted in an improved full-year outlook. Keep up the impressive work!
“PepsiCo’s impressive earnings and raised outlook demonstrate the company’s resilience and ability to adapt to changing market conditions. This positive news is a testament to their strong business strategies and consumer demand for their products. Kudos to PepsiCo for delivering outstanding results.”