In this articlePEP your favorite stocksCREATE FREE ACCOUNTFILE PHOTO: Cans of Pepsi are seen at the PepsiCo Walkers factory in Leicester, Britain, August 14, 2024.
Hollie Adams | ReutersPepsiCo on Thursday reported quarterly earnings and revenue that beat analysts' expectations, as international growth offset another quarter of declining volume in North America.s rose nearly 2% in premarket trading.Here's what the company reported for its fiscal third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per : $2.29 adjusted vs.
$2.26 expectedRevenue: $23.94 billion vs.
$23.83 billion expectedPepsi reported third-quarter net income attributable to the company of $2.6 billion, or $1.90 per , down from $2.93 billion, or $2.13 per , a year earlier.Excluding restructuring and impairment charges and other items, the company earned $2.29 per .Net sales rose 2.6% to $23.94 billion.
Stripping out acquisitions, divestitures and foreign exchange, Pepsi's organic revenue increased 1.3% in the quarter.However, the Frito-Lay and Gatorade owner is still seeing softer demand for its ducts.
Pepsi's worldwide volume for both food and drinks fell 1% during the quarter.
The metric strips out pricing and foreign exchange changes.In particular, Pepsi has struggled in its market in recent quarters, leading the company to invest back into its brands and to explore cost-cutting measures."We also expect our North America to der imved growth and fitability trends as we aggressively reduce costs, accelerate innovation and further sharpen our price pack architecture initiatives," executives said in prepared remarks.Pepsi Foods North America, which includes brands Doritos, Quaker Oats and Pearl Milling, reported that its volume fell 4% in the fiscal third quarter.
The company has been in more "permissible" snack offerings, Stacy's pita chips and Quaker rice cakes.
It has more snack options on the way, Doritos tein, which aims to cash in on a consumer shift toward tein-rich foods.Pepsi also unveiled new packaging for Lay's potato chips that highlighted its lack of artificial colors and flavors, and pledged to launch Doritos and Cheetos "NKD," which will not use synthetic dyes or flavors.
Pepsi and other brands have moved to cut out those ingredients in part due to pressure from the Trump administration.
The company has also been trying to attract price-conscious consumers by making its multipacks and single-serving snacks cheaper.Imving the performance of the North American food segment "is a top priority for the ," executives said in prepared remarks.Pepsi's North American beverage unit saw volume shrink 3%, although CEO Ramon Laguarta noted "imved momentum" in the .
The company's namesake soda grew both volume and revenue in the quarter, while new acquisition Poppi has seen its year-to-date retail sales climb more than 50% compared with the year-ago period, executives said.
In September, Pepsi divested its ownership of Rockstar Energy in the U.S. and Canada to rival energy drink maker Celsius.
The beverage giant owns an 11% stake in Celsius.The company also reiterated its full-year outlook.
It still expects its core constant currency earnings per to be roughly unchanged from the prior year and organic revenue to grow by a low single-digit percentage.Pepsi also announced on Thursday that Chief Financial Officer Jamie Caulfield plans to retire.
Walmart U.S. CFO Steve Schmitt will succeed him, effective Nov. 10.