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PepsiCo's Mixed Q2 Results

Herausgegeben von MEXEM EUROPE

July 26, 2024
(GMT+2)

PepsiCo {{ m-tag option="price" ticker="PEP" currency="USD" }} reported mixed results for the second quarter of 2024, highlighting achievements and challenges. The company faces declining demand in North America and has adjusted its revenue outlook for the year.

Performance Overview

Earnings per share (EPS):

  • Reported: $2.28
  • Expected: $2.16

Revenue:

  • Reported: $22.5 billion
  • Expected: $22.57 billion

Net Income:

  • Current year: $3.08 billion or $2.23 per share
  • Previous year: $2.75 billion or $1.99 per share

Excluding items:

  • EPS remained at $2.28

Net Sales:

  • Increased by nearly 1%

Organic Revenue:

  • Increased by 1.9%
  • Driven by international markets

Challenges in North America

Despite global gains, PepsiCo struggled domestically. The company’s North American beverage unit saw volume shrink by 3%, while Frito-Lay North America experienced a 4% decline in volume. The consumer shift towards more value-conscious spending has reduced purchases of PepsiCo’s products and increased preference for cheaper, private-label options.

Strategic Adjustments

In response to these challenges, PepsiCo is focusing on higher-margin packaging, in-store promotions, and its flagship brands like Cheetos and Doritos. CEO Ramon Laguarta noted improvements in volume for North American drinks and highlighted a successful July 4th sales period.

Future Outlook

PepsiCo narrowed its revenue growth outlook to approximately 4% for the year, down from at least 4%. The company maintains its guidance for core constant currency earnings growth of at least 8%; therefore, PepsiCo anticipates a recovery in the latter half of the year.



The information on mexem.com is for general informational purposes only. It should not be regarded as investment advice. Investing in stocks involves risk. A stock's past performance is not a reliable indicator of its future performance. Always consult a financial advisor or trusted sources before making any investment decisions.


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