Home Markets PepsiCo (PEP) Q4 2023 Earnings

PepsiCo (PEP) Q4 2023 Earnings

by SuperiorInvest

Bottles of Pepsi are seen at a grocery store in Las Vegas, the United States, on November 17, 2023.

Jakub Porzycki | Nurfoto | fake images

PepsiCo on Friday reported mixed quarterly results as North American demand for its food and beverages weakened.

The company’s shares fell more than 2% in premarket trading.

Here’s what the company reported compared to what Wall Street expected, according to a survey of analysts by Refinitiv:

  • Earnings per share: Adjusted $1.78 vs. expected $1.72
  • Revenue: $27.85 billion vs. $28.4 billion expected

Pepsi reported fourth-quarter net income of $1.3 billion, or 94 cents per share, down from $518 million, or 37 cents per share, a year earlier.

Excluding items, the food and beverage giant earned $1.78 per share.

net sales fell 0.5% to $27.85 billion.

The company’s organic revenue, which excludes acquisitions and divestitures, increased 4.5% in the quarter, helped by higher prices. But Pepsi volume, which excludes pricing and currency exchanges, fell again this quarter.

Pepsi’s North American Quaker Foods division reported an 8% drop in volume. A voluntary recall of its granola and cereal bars affected its sales during the quarter.

Frito-Lay North America, which includes brands such as Cheetos and Doritos, posted a 2% drop in volume.

Pepsi’s North American beverage unit saw its volume drop 6% in the quarter.

For 2024, Pepsi now anticipates organic revenue growth of at least 4% and constant currency earnings per share growth of at least 8%. The company previously forecast organic revenue growth at the high end of 4% to 6% and constant currency earnings per share growth in the high single digits.

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