PepsiCo tops Q1 estimates following price cuts across key brands.


Food and beverage giant PepsiCo delivered better‑than‑expected first‑quarter revenue and earnings on Thursday, with price cuts across key snack brands helping its North American food division return to volume growth for the first time in more than two years.

PepsiCo

Source: Sharecast

PepsiCo said revenue had risen 8.5% to $19.44bn, ahead of consensus estimates of $18.94bn, while organic sales increased 2.6%. Adjusted earnings of $1.61 per share also beat forecasts of $1.55 and net profits rose to $2.33bn, or $1.70 per share, up from $1.83bn, or $1.33 per share, a year earlier.

The Harrison-based firm said February's price reductions of up to 15% on Lay's, Tostitos, Doritos and Cheetos helped drive a 2% volume increase across its Frito‑Lay and Quaker Oats businesses, reversing a 1% decline in the prior quarter. Beverage volumes, on the other hand, fell 2.5%.

Full‑year guidance was unchanged, with organic revenue expected to grow 2% to 4% and earnings per share to rise 4% to 6%, even as the group noted a more uncertain global backdrop due to geopolitical tensions, saying its hedging strategy should help offset near‑term cost pressures.

As of 1315 BST, PepsiCo shares were up 1.05% in pre-market trading at $156.47 each.

Reporting by Iain Gilbert at Sharecast.com


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