Declining demand in North America, but strong international growth, leading to mixed quarterly results for PepsiCo.

From CNBC: 2024-07-11 06:37:13

PepsiCo reported mixed quarterly results with declining demand in North America for its beverages and snacks. The company narrowed its revenue outlook for the full year, now expecting approximately 4% organic revenue growth. Shares fell more than 1% in premarket trading. Second-quarter earnings were $2.28 adjusted per share, slightly beating expectations.

Net sales for Pepsi rose nearly 1% to $22.5 billion, with organic revenue up 1.9%, driven by international business. However, in their home market, the company struggled due to product recalls and decreasing demand. Frito-Lay North America’s volume declined 4%, Pepsi’s beverage unit shrank 3%, and Quaker Foods North America’s volume fell by 17%.

Despite challenges in the North American market, PepsiCo posted strong international growth with organic revenue increasing by 1.9%. The company’s second-quarter net income attributable to the company was $3.08 billion, or $2.23 per share, up from the previous year. The company’s ability to navigate challenges in its home market highlights the importance of diversification.



Read more at CNBC:: PepsiCo (PEP) earnings Q2 2024 earnings