Pepsico grows nearly 6% on foreign sales as U.S. demand drops

Pepsico posted a net profit of US$2.042 billion, an increase of 5.69% compared to the US$1.932 billion earned during the same period of the previous year. These figures exceed all expectations for the first quarter 2024

This means that earnings per share (EPS) will be $1.48 compared to $1.40 per share until March 2023. In addition, adjusted EPS is expected to be $1.61, beating consensus expectations for $1.52.

In addition to exceeding expectations with its earnings, the company has also performed well in terms of revenue. For the quarter, they reported $18.25 billion, an increase of 2.3% compared to revenues for the first three months of the previous year ($17.846 billion). The figure also exceeded analysts’ estimates, who had predicted revenues of US$18.07 billion.

However, the amount of products sold continues to decrease due to price increases in brands such as Gatorade, Fritos and others in its portfolio.

According to the results by business area, Frito-Lay North America’s sales increased to US$5,676 million compared to US$5,583 million in the previous quarter. On the other hand, Quaker Food North America’s sales have decreased to US$593 million. In Latin America, revenues increased significantly in the first quarter, reaching 2,067 million, compared to 1,777 million in the same period last year.

On the European continent, a more moderate increase of US$1,936 million was recorded. This upward trend has also been observed in Africa, the Middle East and Asia-Pacific.

During the first three months of the year, PepsiCo’s businesses maintained strong performance and agility, especially in its international business. They have managed to improve some important indicators such as sales volume, net income growth, operating profit margin and EPS (earnings per share) compared to the same period of the previous year. Despite the recall of certain products in North America and the difficult comparison with last year’s growth, Ramon Laguarta, PepsiCo’s president and CEO, highlighted these positive achievements during the quarter.

Going forward, our focus will continue to be on achieving a good market presence and offering delicious products that provide convenience and good value for the consumer, explained Pepsico’s CEO.

PepsiCo has confirmed its 2024 projections, in which it forecasts at least a 4% increase in organic revenue and an 8% increase in inflation-adjusted earnings per share. These expectations remain unchanged from their previous announcement.