FILE PHOTO: Cans of Pepsi are seen at the PepsiCo Walkers factory in Leicester, Britain, August 14, 2024.
Hollie Adams | Reuters
PepsiCo on Thursday reported quarterly earnings and revenue that beat analysts’ expectations, as international growth offset another quarter of declining volume in North America.
Here’s what the company reported for its fiscal third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $2.29 adjusted vs. $2.26 expected
- Revenue: $23.94 billion vs. $23.83 billion expected
Pepsi reported third-quarter net income attributable to the company of $2.6 billion, or $1.90 per share, down from $2.93 billion, or $2.13 per share, a year earlier.
Excluding items, the company earned $2.29 per share.
Net sales rose 2.6% to $23.94 billion. Stripping out acquisitions, divestitures and foreign exchange, Pepsi’s organic revenue increased 1.3% in the quarter.
However, the Frito-Lay and Gatorade owner is still seeing softer demand for its products. Pepsi’s worldwide volume for both food and drinks fell 1% during the quarter. The metric strips out pricing and foreign exchange changes.
In particular, Pepsi has struggled in its home market in recent quarters, leading the company to invest back into its brands and to explore cost-cutting measures.
Pepsi Foods North America, which includes brands like Doritos, Quaker Oats and Pearl Milling, reported that its volume fell 4% in the fiscal third quarter. And Pepsi’s North American beverage unit saw volume shrink 3%, although CEO Ramon Laguarta noted “improved momentum” in the business.
The company also reiterated its full-year outlook. It still expects its core constant currency earnings per share to be roughly unchanged from the prior year and organic revenue to grow by a low single-digit percentage.
Pepsi also announced on Thursday that Chief Financial Officer Jamie Caulfield plans to retire. Walmart U.S. CFO Steve Schmitt will succeed him, effective Nov. 10.