Cases of Pepsi will go on sale on April 22, 2017 in a store in Carlsbad, California.
Mike Blake | Reuters
PepsiCo on Thursday reported quarterly earnings that estimated the top analysts, even though the company saw uneven recovery in its international markets.
This is the first quarter of the company dealing with difficult comparisons to the early storage. CEO Ramon Laguarta said the company also has interruptions with business in the United States.
The company’s shares rose by less than 1% in pre-trading.
This is what the company reported compared to what Wall Street expected, based on a survey by analysts by Refinitiv:
- Earnings per share: $ 1.21 adjusted to $ 1.12 expected
- Revenue: $ 14.82 billion versus $ 14.55 billion expected
Pepsi reported first-quarter net income of $ 1.71 billion or $ 1.24 per share, compared to $ 1.34 billion, or 96 cents per share, a year earlier.
Excluded items earned the food and beverage giant $ 1.21 per share, beating the $ 1.12 per share expected by analysts interviewed by Refinitiv.
Net sales rose 6.8% to $ 14.82 billion, topping $ 14.55 billion. Organic revenues, which take away the impact of foreign exchange, acquisitions and disinvestments, grew by 2.4% during the quarter as consumers maintained their pandemic snacking habits.
The organic revenue of Frito-Lay North America increased by 3%. New products like Doritos 3D Crunch and Cheetos Crunch Pop Mix have encouraged consumers to keep snacking. However, the segment’s gains were hurt by the winter storms in February.
The North American beverage industry reported an organic revenue growth of 2%. The company has grown double-digit numbers for its sparkling water Bubly and Starbucks ready-to-drink coffee.
Quaker Foods North America’s organic revenue rose just 1% during the quarter. The segment has benefited most from the home breakfast trend, which may disappear as more consumers return to their offices.
Outside North America, the results were mixed because some markets were facing new virus outbreaks. Most of its international markets’ first quarter includes only January and February. Europe’s organic income was unchanged from the previous year, while Africa, the Middle East and South Asia declined by 1%. Organic revenues in Latin America rose 3%, while the Pacific, Australia, New Zealand and China segments rose 18%.
The company reiterated its 2021 forecast, which expects organic earnings from the mid-single digits and constant currency earnings per share with high single digits. Pepsi predicts strong sales of the North American beverage unit as more consumers visit restaurants and movie theaters, but demand for Quaker Foods products is likely to decline.