PepsiCo exceeds prospects amid international growth despite U.S. slowdown

(MENAFN) PepsiCo, the global food and beverage giant, has outperformed Wall Street forecasts for first-quarter revenues and profits, driven primarily by robust demand for its soft drinks and snacks in international markets. Despite experiencing a slowdown in the United States, the company's impressive performance was fueled by the popularity of brands like Cheetos and Doritos abroad.

In the first quarter, PepsiCo reported a 2.3 percent increase in net revenues, reaching USD18.25 billion, surpassing the estimates of financial analysts, who had projected revenues of USD18.07 billion. Moreover, the company's core earnings per share stood at USD1.61, exceeding the anticipated USD1.52 per share. This notable achievement underscores PepsiCo's resilience and adaptability in navigating challenging market conditions.

While PepsiCo's North American beverage unit witnessed a modest 1 percent increase in sales during the first quarter, organic volume experienced a 5 percent decline. Notably, sales at Quaker Foods' North American division plummeted by 24 percent, following a product recall in December due to potential salmonella contamination. Despite these setbacks, PepsiCo remains optimistic about the gradual recovery of its North American business, as the effects of the product recalls diminish over time.

PepsiCo's CEO, Ramon Laguarta, highlighted the company's strategic initiatives to drive growth, emphasizing the expansion of its product portfolio in both developed and emerging markets. Efforts to stimulate demand include the introduction of new offerings such as Quaker instant oats and the Celsius energy drink. By diversifying its product offerings and tapping into evolving consumer preferences, PepsiCo aims to sustain its momentum and capitalize on opportunities for growth across various market segments.

Overall, PepsiCo's impressive performance in the first quarter underscores its resilience, strategic foresight, and commitment to innovation. As the company continues to navigate through evolving market dynamics, its focus on expanding its presence globally and enhancing its product offerings positions it well for sustained success in the competitive food and beverage industry.

MENAFN24042024000045015682ID1108131969