PepsiCo surpassed revenue and earnings estimates last quarter as its North American foods segment posted its first volume growth in two years.
Net revenue increased 8.5% year-over-year to US$19.44 billion, passing LSEG consensus estimates of $18.94 billion. Earnings per share rose 9% to $1.61, beating estimates of $1.55.
“We are pleased with our first-quarter results, which featured an acceleration in both net revenue and organic revenue growth – with a notable improvement in convenient foods organic volume. An extensive commercial agenda, which includes the restaging of large global brands, innovation activity and certain affordability initiatives, is being executed well and business performance improved,” said chair and CEO Ramon Laguarta.
“We are encouraged with the resilience of the International business while North America continued to make progress in the first quarter. As we look ahead, we aim to successfully execute our commercial plans and tightly manage costs to help fund investments to accelerate growth.”
Its North American foods segment reported a 2% increase in volume. The company lowered prices on products like Lay’s, Doritos, and Cheetos in February.
North American and international beverages also each saw 9% volume growth last quarter. PepsiCo’s Asia Pacific, Latin America, and Europe, Middle East and Africa divisions all posted double-digit percentage volume growth.
Core operating profit grew 9% to $3.05 billion.
The company’s full-year guidance includes earnings per share growth of 4-6%, and a 2-4% rise in organic revenue. Last quarter, organic revenue was up 2.5%.
PepsiCo (NASDAQ: PEP) closed 2.3% higher at $158.38, and climbed a further 0.3% after-hours. Its market capitalisation is $216.50 billion.
