The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry
PepsiCo has published its Q2 earnings, reporting 10.4% net revenue growth, and raising its full-year outlook for the second consecutive quarter. For the fiscal year 2023, PepsiCo now expects 10% organic revenue growth (previously 8%). The food and beverage giant reported net revenue of $22.3 billion, exceeding consensus estimates of $21.7 billion. Organic revenue rose 13% in the quarter, the company’s seventh consecutive quarter of double-digit organic revenue growth. Operating profit stood at $3.65 billion, a 39% increase from $2.63 billion in Q1. Pepsi reported $2.09 earnings per share (EPS), beating consensus estimates of $1.96. Core gross profit increased by 13% and core gross margin expanded by 130 basis points, while core operating profit increased by 13% and core operating margin expanded by 45 basis points. The company’s Frito-Lay North America division delivered 14% organic revenue growth during the second quarter, while PepsiCo Beverages North America’s organic revenue increased 10%. Pepsi said investments made in its brands, consumer insights, manufacturing and go-to-market execution are fueling growth across the portfolio, with double-digit net revenue growth in Gatorade and high-single-digit net revenue growth in Pepsi, Starbucks and Rockstar. PepsiCo chairman and CEO Ramon Laguarta commented: “We are very pleased with our performance for the second quarter as our business momentum remains strong”. He added: “Moving forward, we will look to elevate our focus on productivity initiatives to further support investments in innovation, brand building, digitalisation and sustainability to win in the marketplace and fortify our businesses for the long term”.
