PepsiCo (PEP) reports Q3 earnings


A woman grabs a bottle of Diet Pepsi in Atlanta, Georgia.

Chris Rank | Bloomberg | Getty Images

PepsiCo hiked its forecast for the year Wednesday morning after reporting third-quarter earnings and revenue that beat analyst expectations.

Shares were up about 2% in pre-market trading.

Here’s how the owner of Mountain Dew, Gatorade and Lay’s performed compared to Wall Street estimates, according to Refinitiv:

  • Earnings per share: $1.97 adjusted vs. $1.84 expected.
  • Revenue: $21.97 billion vs. $20.84 billion expected.

For 2022, the company now expects organic revenue growth of 12%, up from 10%. It expects core constant currency earnings per share growth of 10%, up from 8%.

For its Frito-Lay North America division, the company said revenue rose 20% in the quarter despite a dip in volume. Quaker Food North America’s revenue also rose 15% despite a decline in volume. PepsiCo Beverages North America’s revenue increased 4% on slightly higher volume.

In its European unit, PepsiCo saw revenue increase 1% despite lower volumes. Africa, Middle East and South Asia saw a 4% increase in revenue on lower volume in foods and higher volume in drinks. Revenue for the unit encompassing Asia Pacific and China rose 3% on stronger volume in both food and drinks.

PepsiCo has previously said it expected its costs to continue rising in the second half of this year. In response, the company has said it was accelerating its cost management initiatives, including using smaller sizes for its variety packs.

For the period ended Sept. 3, PepsiCo’s net income was $2.7 billion, up from $2.22 billion a year ago. Total revenue rose to $21.97 billion, up 9% from $20.19 billion a year ago.

Coca-Cola is set to report earnings Oct. 25.

This is breaking news. Check back for updates.



Image and article originally from www.cnbc.com. Read the original article here.

By admin