PepsiCo projects higher organic revenues.
Prices are being accepted by consumers. Supply, labor, and transportation-related problems are getting better. Executives at PepsiCo, Inc. raised fiscal-year projections during the release of first-quarter earnings, which concluded on March 25, in response to these encouraging indicators.
Organic revenue for the fiscal year is now predicted to rise by 8%, up from a prior guidance of 6%, and core constant currency profits per share is expected to rise by 9%, up from a previous guidance of 8%.
During an April 25 earnings call, Chief Executive Officer Ramon Laguarta stated, “We’re seeing both better elasticities than some of the worst-case scenarios we were planning for, and also, we’re seeing the teams delivering better productivity.”
He said that improvements have been made in the movement of materials, labor availability, and transportation.
Net income attributable to PepsiCo for the quarter was $1.93 billion, or $1.40 per share on the common stock. This was less than the $4.26 billion, or $3.06 per share, from the first quarter of the prior year. The sale of some juice brands in North America and Europe resulted in a $3.3 billion gain for the first quarter of the previous year.
During an April 25 earnings call, Chief Executive Officer Ramon Laguarta stated, “We’re seeing both better elasticities than some of the worst-case scenarios we were planning for, and also, we’re seeing the teams delivering better productivity.”
He said that improvements have been made in the movement of materials, labor availability, and transportation.
Net income attributable to PepsiCo for the quarter was $1.93 billion, or $1.40 per share on the common stock. This was less than the $4.26 billion, or $3.06 per share, from the first quarter of the prior year. The sale of some juice brands in North America and Europe resulted in a $3.3 billion gain for the first quarter of the previous year.
In the alcoholic beverage segment, PepsiCo will proceed cautiously. In this segment, the company distributes Hard Mountain Dew, a product of the Boston Beer Co.
“We want to concentrate on a few strong brands that we have developed with strategic partners and then use our distribution capabilities to get them in front of consumers across the nation,” Mr. Laguarta stated. “Our intention is not to build a large portfolio of products and complex portfolio.” That is our path. We’re not hurrying.
You may also like:
Food security in emerging nations: issues and remedies
Are drinks the secret to increasing cannabis use among consumers?
Managing the lack of labour for mushroom picking
Frito-Lay North America saw a 15% increase in revenue, from $4.84 billion to $5.58 billion. Revenue from organic sources rose by 16%. Not only did smaller emerging brands like PopCorners, Smartfood, and SunChips record double-digit percentages of revenue growth, but so did larger brands like Lay’s, Doritos, Cheetos, and Ruffles.
Revenue at Quaker Foods North America increased to $777 million from $713 million, a 9% increase. Organic sales increased by 10%. The categories of oatmeal, light snacks, snack bars, grits, and cookies saw net revenue growth in double digit percentages.
PepsiCo’s overseas division generated 15% organic revenue growth. Now available in 110 worldwide regions is Pepsi Zero Sugar.