From Yahoo Finance: 2025-04-24 06:03:00

PepsiCo lowers profit forecast due to higher production costs and tariffs uncertainty under Trump administration. Shares drop 2.5% after first quarterly profit miss in five years. CEO expects more volatility, consumer goods giants Procter & Gamble and Kimberly-Clark also lower forecasts. Fiscal 2025 core earnings per share to decline 3%.

To address rising supply chain costs, PepsiCo plans mitigation actions including adjusting sourcing of key inputs. Price hikes offsetting costs benefitting PepsiCo and peers, with average prices up 3% and organic volumes down 2%. Company accelerating transition to natural ingredients amid health concerns. Revenue falls 1.8% to $17.92 billion in first quarter.

PepsiCo and Coca-Cola expand healthier snacking and energy drinks portfolios. Adjusted earnings per share miss estimates at $1.48, revenue below expectations at $17.92 billion. Analysts skeptical of positive catalysts in near term, challenging year ahead for PepsiCo investors.

Read more: PepsiCo cuts annual profit forecast as tariffs set to drive up costs