Welcome to Extreme Investor Network, where we provide you with valuable insights and analysis on the latest business news! Today, we are diving into the recent developments at PepsiCo, one of the leading global food and beverage companies.
PepsiCo recently announced a lower full-year outlook for organic revenue following its second consecutive quarter of weaker-than-expected sales. The company cited various factors for this decline, including the repercussions of the Quaker Foods North America recalls, weakening demand in the U.S., and business disruptions in some international markets.
As a result of these challenges, Pepsi now anticipates a low-single-digit increase in organic revenue for 2024, down from its previous forecast of 4% growth. However, the company reiterated its projection for at least an 8% increase in its core constant currency earnings per share.
In the third quarter, Pepsi reported net income attributable to the company of $2.93 billion, or $2.13 per share, compared to $3.09 billion, or $2.24 per share, in the same period last year. The company’s adjusted earnings per share came in at $2.31, slightly beating Wall Street’s expectations.
Despite the drop in overall sales, Pepsi’s organic revenue, which excludes acquisitions, divestitures, and currency changes, saw a modest 1.3% increase in the quarter. However, the company noted a decline in volume for both its food and beverage divisions, with Quaker Foods North America experiencing the most significant drop.
The Quaker Foods North America recalls, initiated due to potential salmonella contamination, had a notable impact on Pepsi’s overall performance. The company issued its first recall in December, expanded it in January, and eventually closed a plant tied to the incident in June.
As investors assess PepsiCo’s latest financial results and revised outlook, it will be interesting to see how the company navigates these challenges and regains momentum in the market. Stay tuned to Extreme Investor Network for more in-depth analysis and expert insights on the ever-evolving world of business news.