On Wednesday, PepsiCo reported quarterly revenue and revenue that peaked analysts' expectations, thanks to continued international and Frito-Lay snack growth.
- Earnings per share: 97 cents, adjusted, against 92 cents expected [1
Frito-Lay owner reported a net income of $ 1.41 billion, or $ 1 per share , up from NOK 1.34 billion, or 94 cents per share, yes earlier
Exclusively restructuring and write-downs, tax assets and other items, PepsiCo achieved 97 cents per share and peaked at 92 cents per share expected by analysts examined by Refinitiv.
Net sales increased by 2.6% to $ 12.88 billion, beating expectations at $ 12.70 billion. Frito-Lay was standout in the quarter, with an increase of 5.5% from last year. PepsiCo has invested in the snack business by adapting its portfolio to changing consumer magazines, such as the acquisition of healthy snack maker Bare Foods.
The company has effective net pricing thanks to some of the revenue growth. For example, sales volume for its North American beverage business declined by 2% in the quarter ending March 23, but PepsiCo increased its prices by 4%, resulting in growth of 2%.
Organic revenue that removes the impact of acquisitions, divestments and currencies increased by 5.2 per cent in the quarter. Laguarta blamed currency claims for the difference between total sales growth and organic growth. Like the rival Coca-Cola, the global soda giant stands on the outside for currency press.
Its international segments experienced the highest organic sales growth. The company's divisions in Latin America and Asia, the Middle East and North Africa reported double-digit organic growth.
Wednesday, the company scored its 2019 goals, including 4 percent organic revenue growth and earnings per share of $ 5.50.
Last quarter, PepsiCo Wall Street missed out on expectations for 2019 prospects when it expects lower earnings as it spends more on marketing and advertising to boost sales. To balance these investments, the soft drink manufacturer plans to cut at least $ 1 billion in costs each year through 2023, which will include redundancies in jobs that can be replaced by automation.