- July 13, 2023
- Posted by: legaleseblogger
- Category: Related News
PepsiCo Beats Earnings and Revenue Estimates, Raises Full-Year Outlook
- PepsiCo beat second-quarter earnings and revenue estimates.
- The beverage giant also raised its full-year outlook.
- Shares jumped in premarket trading.
PepsiCo’s Strong Performance
Pepsi products at a convenience store in Crockett, California, US, on Friday, June 16, 2023.
David Paul Morris | Bloomberg | Getty Images
PepsiCo, one of the leading beverage companies, has reported quarterly earnings and revenue that have exceeded analysts’ expectations. This outstanding performance has prompted the company to raise its full-year outlook, resulting in a surge in premarket trading.
Investors would be delighted to know that PepsiCo’s earnings per share came in at $2.09, surpassing the estimated figure of $1.96. Moreover, the company’s revenue stood at $22.32 billion, higher than the anticipated $21.73 billion.
PepsiCo’s net income 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. By excluding certain items, the company achieved an adjusted earnings per share of $2.09.
The company’s net sales witnessed a growth of 10.4%, reaching $22.32 billion. Notably, PepsiCo’s organic revenue, which eliminates the impact of acquisitions and divestitures, rose by an impressive 13% during the quarter.
However, PepsiCo faced a decline in volume due to higher prices for its snacks and drinks, which adversely affected demand. The food divisions experienced a 3% drop in volume, while the beverages segment saw a 1% decrease.
Despite these challenges, Quaker Foods North America reported a 5% decline in volume, while Pepsi’s North American beverage unit saw a 4.5% decrease. On a positive note, Frito-Lay North America demonstrated 1% growth in volume.
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Positive Outlook and Future Growth
Looking ahead, PepsiCo is optimistic about its performance in 2023. The company now expects a 10% organic revenue growth, surpassing its previous forecast of 8%. Additionally, PepsiCo has raised its core constant currency earnings outlook from 9% to 12% growth.
By leveraging its strong brand portfolio, innovative product offerings, and strategic investments, PepsiCo aims to continue its upward trajectory and deliver value to its shareholders.