PepsiCo has reported a 5.3% year-on-year rise in net revenue for its third quarter results, reflecting the continued strength of its snack and food business and the significant improvement of its global beverage business.
The company posted net revenues of $18.09 billion in the third quarter ended 5 September, up from $17.19 billion last year.
While at-home due to the Covid-19 pandemic, consumers are continuing to buy more of PepsiCo’s snacks – such as Cheetos and Doritos – as net revenue of its Frito-Lay North America unit rose organically by 7%. Meanwhile, an increase in the purchase of breakfast food caused a 6% increase in net revenue at its Quaker Foods business.
Earlier this month, PepsiCo started construction on a new manufacturing plant in Russia that will produce Lay’s potato chips, marking its third savoury snacks manufacturing site in the country.
Despite falling by 7% in its last quarter, the company’s other largest division, PepsiCo Beverages North America, saw its net revenue go up by 6%.
In the company’s Europe division, net revenue increased by 3%, while in Latin America it fell by 13%. PepsiCo’s Africa, Middle East and South Asia unit saw a 31% increase and its Asia-Pacific, Australia and New Zealand and China Region also rose by 15%.
PepsiCo chairman and CEO, Ramon Laguarta, said: “Despite the ongoing volatility and complexity in our operating environment, I believe our third quarter performance reinforces the diversification of our portfolio, the resilience and agility of our teams across every continent and demonstrates our ability to support our customers and communities during their time of need while also delivering good results for our shareholders.”
Given its year-to-date business performance, PepsiCo has provided an update to its full year 2020 guidance and expects to deliver 4% organic revenue growth.
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