Pepsi bottles are seen at the grocery store in Las Vegas, United States on November 17, 2023.
Jakub Porzycki | Nurphoto | Getty Images
PepsiCo on Friday reported mixed quarterly results as North American demand for its food and drinks weakened.
Shares of the company fell more than 2% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.78 adjusted vs. $1.72 expected
- Revenue: $27.85 billion vs. $28.4 billion expected
Pepsi reported fourth-quarter net income of $1.3 billion, or 94 cents per share, up from $518 million, or 37 cents per share, a year earlier.
Excluding items, the food and beverage giant earned $1.78 per share.
Net sales dropped 0.5% to $27.85 billion.
The company’s organic revenue, which excludes acquisitions and divestitures, rose 4.5% in the quarter, helped by higher prices. But Pepsi’s volume, which strips out pricing and currency changes, slid again this quarter.
Pepsi’s North American Quaker Foods division reported an 8% decline in volume. A voluntary recall of its granola bars and cereals hurt its sales during the quarter.
Frito-Lay North America, which includes brands like Cheetos and Doritos, posted a 2% drop in volume.
Pepsi’s North American beverage unit saw its volume fall 6% in the quarter.
For 2024, Pepsi now anticipates organic revenue growth of at least 4% and core constant currency earnings per share growth of at least 8%. The company previously forecast organic revenue growth on the high end of 4% to 6% and core constant currency earnings per share growth in the high single digits.
