PepsiCo beat estimates of revenue and earnings per share last quarter amid sales growth in its international food businesses and named Walmart United States finance head Steve Schmitt as Chief Financial officer (CFO).
Revenue for the global food and beverage company was US$23.94 billion, up from $23.32 billion year-over-year, and higher than LSEG estimates of $23.83 billion.
Earnings per share were $2.29, down from $2.31 but beating estimates of $2.26.
“Our reported net revenue growth accelerated and reflects the resilience of our international business, improved momentum within North America Beverages and the benefits of our portfolio reshaping actions,” PepsiCo chair and CEO Ramon Laguarta said.
“As we look ahead to the balance of this year and beyond, our top priorities are to accelerate growth and aggressively optimise our cost structure.
To accomplish this, we are introducing a strong pipeline of innovation to accelerate portfolio transformation, continuously sharpening our price pack architecture to provide good value to consumers, and right sizing our entire cost base to help fund our activities.”
Operating profit was $3.57 billion last quarter, down from $3.87 billion. PepsiCo’s cost of sales grew to $11.11 billion, from $10.40 billion one year ago.
PepsiCo Foods North America revenue was flat, while Beverages North America revenue was up 2%.
Europe, Middle East, and Africa revenue grew by 9%, and Latin America Foods and Asia Pacific Foods revenue increased by 2% each.
International Beverages Franchise revenue was flat, however.
The company reiterated its full-year forecast of a low single digit increase in organic revenue, and constant currency earnings per share even with 2024 at $6.95.
Schmitt will join as PepsiCo’s CFO and executive vice president from 10 November.
“Steve's experience working with complex supply chains, adapting to the dynamic retail landscape and omnichannel consumers, and delivering operational excellence on a large scale will be impactful at PepsiCo,” Laguarta said.
PepsiCo CFO Jamie Caulfield will retire after two years in the role and more than three decades with PepsiCo.
PepsiCo’s (NASDAQ: PEP) share price closed at $144.71, up from its previous close at $138.84, giving it a market capitalisation of $198.12 billion.
