Reported EPS of $1.06 was flat on a 3% decline in net revenue. In constant currency, the company delivered a 5.5% increase in net revenue and an 8% increase in core EPS.
Indra Nooyi, PepsiCo chairman and CEO, said: “Our results this quarter reinforce the advantages of our balanced portfolio, as our food and international businesses delivered solid performance while we continued the transformation of our North American beverage business.
“Consumers find nourishment, simple pleasures and great value in our products, which keeps them loyal to our brands in these tough times. And our seasoned team of leaders has the operating agility to deliver on our full-year guidance while implementing our long-term plans for healthy and balanced growth. Across our businesses, we’re investing aggressively in R&D to drive innovation to further differentiate our brands, and we believe now is the time to invest in key markets that represent enormous opportunities for years to come.”
As part of its strategy to grow in key markets, the company recently announced plans to invest $1bn over the next four years in China, PepsiCo’s highest priority growth market. In Russia, PepsiCo – along with its partner The Pepsi Bottling Group – announced a plan to invest $1bn over the next three years.
Richard Goodman, PepsiCo CFO, said: “Targeted growth, disciplined cost management and a keen focus on working capital management drove strong cash flow from operations in the quarter. We’re on track to deliver $6.4bn in cash flow from operations this year, or $7bn excluding a one-time discretionary pension contribution we made in the first quarter.”
Source: PepsiCo
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