Tue, 04 Feb 2025

PepsiCo earnings beat estimates, but demand for drinks and snacks drops in North America

PepsiCo's earnings topped Wall Street's estimates, but the company's revenue missed expectations, as drink and snack demand fell in North America.

* Net income attributable to the company was $1.52 billion, or $1.11 per share, up from $1.3 billion, or 94 cents per share, a year earlier.
* Excluding restructuring, impairment charges and other items, earnings were $1.96 per share.
* Net sales dropped slightly to $27.78 billion.
* Organic revenue rose 2.1% in the fourth quarter.
* Worldwide volume increased 1% for convenient foods and 1% for beverages.
* Demand was weaker in North America, with Frito-Lay's volume falling 3%.
* The company's North American beverage unit reported a 3% decline in quarterly volume.
* Quaker Foods North America saw its volume fall 6%, but executives expect performance to improve in 2025 as it laps the fallout from a prior recall.
* For 2025, Pepsi is projecting a low-single-digit increase in organic revenue and a mid-single-digit rise in core constant currency earnings per share.
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