- PepsiCo Inc
- 11 July 2024 13:27:38
Source: Sharecast
The American food and drink giant said that for April to June, its net income jumped 12% to $3bn, translating to an adjusted $2.28 per share.
That exceeded analysts' predictions of $2.16 per share.
However, PepsiCo's revenue saw modest growth of less than 1%, reaching $22.5bn, slightly below the anticipated $22.59bn.
The New York-based company had been relying heavily on price hikes over the past two years to counteract rising costs for ingredients and packaging, with eight consecutive quarters of double-digit percentage price increases through to the end of 2023.
In 2024, prices were raised by 5% in the first quarter and 3% in the second.
Despite the increased prices bolstering profits, they had led to a decline in global sales volumes for the past eight quarters.
PepsiCo put the decline partially down to strategic decisions, such as smaller package sizes.
However, it also noted that lower-income customers in the US were either purchasing fewer snacks or opting for cheaper store brands.
At 0816 EDT (1316 BST), shares in PepsiCo were down 1.74% in premarket trading in New York, at $160.75.
Reporting by Josh White for Sharecast.com.