PepsiCo on Thursday turn up its quarterly sales grew by more than 5% as consumers bought more of its Tostitos and pancake mixes.
The nourishment and beverage giant also provided an outlook for its earnings and revenue for the first time since yanking its forecast in April, when coronavirus pandemic lockdowns hit rummage sales.
Shares of the company rose 1% in premarket trading.
Here’s what the company reported compared with what Screen Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.66, adjusted, vs. $1.49 expected
- Takings: $18.09 billion vs. $17.23 billion expected
Pepsi reported fiscal third-quarter net income of $2.29 billion, or $1.65 per allocate, up from $2.1 billion, or $1.49 per share, a year earlier. The company spent $147 million this point on costs associated with the coronavirus pandemic, like more expensive labor and buying personal protective apparatus.
Excluding items, the company earned $1.66 per share, beating the $1.49 per share expected by analysts surveyed by Refinitiv.
Net car-boot sales rose 5.3% to $18.09 billion, topping expectations of $17.23 billion. Organic revenue, which strips out the impression of foreign currency, acquisitions and divestitures, grew 4.2% in the quarter.
Both its Frito-Lay and Quaker Foods businesses announced organic revenue growth of 6%, despite economies opening up and consumers feeling more comfortable leaving their homes. Frito-Lay saw higher car-boot sales in its Tostitos, Cheetos and Doritos, while Quaker Foods’ pasta and macaroni and cheese dishes reported double-digit tradings growth.
CFO Hugh Johnston said on CNBC’s “Squawk Box” that the company is struggling to keep up with demand for its new Cheetos macaroni and cheese.
“We’re demanding to get capacity as quickly as we can — that’s how popular this is,” he said.
Its North American beverage unit’s organic sales encourage by 3% in the quarter. Its Bubly sparkling water brand, Lipton tea and Starbucks licensed products all saw double-digit sales success. The company also said that Bubly, Gatorade Zero and Mountain Dew Zero Sugar combined have outdistanced $1 billion in sales this year. CEO Ramon Laguarta said that more people are exercising, amazingly at home.
Pepsi’s international business reported organic sales growth of 4%, fueled by higher demand for titbits. Laguarta said the company expects a longer recovery for its beverage business because of reinstated pandemic restrictions. For pattern, Spain said Tuesday it would lock down Madrid and surrounding areas because of a rise in Covid-19 covers. Still, Laguarta said that new local restrictions aren’t impacting the business as dramatically as in April and May.
For the remainder of financial 2020, Pepsi is now expecting organic revenue growth of 4%, in line with its prior outlook, and core earnings per dividend of $5.50, down 38 cents from its original forecast.
Read the full earnings report here.
Redress: CFO Hugh Johnston spoke on “Squawk Box.”