PepsiCo’s quarterly earnings exceeded Wall Street expectations, but revenue missed projections due to declining demand for snacks and drinks in North America. The company reported a 4% decline in shares, indicating investor concerns about the business.
Compared to analyst estimates, PepsiCo’s earnings per share were $1.96, beating the expected $1.94, while its revenue was $27.78 billion, falling short of the projected $27.89 billion.
The company reported a net income of $1.52 billion in the fourth quarter, up from $1.3 billion a year ago. Organic revenue rose 2.1% and Pepsi’s worldwide volume increased by 1%, but North America saw a decline for the fifth consecutive quarter.
PepsiCo attributes the decline to shoppers becoming more cautious, snacking less, and making fewer purchases at convenience stores in the US. However, executives remain confident that the domestic business will recover in 2024.
The company’s Frito-Lay North America reported a 3% fall in volume, while its beverage unit saw a similar decline. Despite this, Gatorade gained market share, and Mountain Dew Baja Blast reached $1 billion in annual sales. PepsiCo is also planning to expand its protein drink segment, which has been growing rapidly.
For the next quarter, PepsiCo projects a low-single-digit increase in organic revenue and a mid-single-digit rise in core constant currency earnings per share. The company expects to build on its international business growth while improving performance in North America.
Source: https://www.cnbc.com/2025/02/04/pepsico-pep-q4-2024-earnings.html