International segments drove growth as North America improved sequentially
PepsiCo reported fiscal third-quarter profit of $3.05 billion on revenue of $25.27 billion, beating analyst estimates on both lines while trimming its full-year guidance for adjusted earnings.
PepsiCo on Thursday posted a profit of $3.05 billion, or $2.23 a share, for the quarter ended Sept. 5, compared with $2.6 billion, or $1.90 a share, a year earlier. Stripping out one-time items, adjusted earnings came in at $2.34 a share, ahead of the $2.29 a share that analysts surveyed by FactSet had expected.
Net revenue climbed 5.6% to $25.27 billion, ahead of Wall Street estimates for $24.95 billion. On an organic basis, revenue was up 3.1%.
The snacks and soda maker said its international business performed well, with each segment delivering net revenue growth. The company added that trends across North America improved sequentially, as lower net pricing helped spur volume and market-share improvements.
“Looking ahead, we remain focused on building upon the strength of the International business while acting with urgency to sustainably improve our performance in North America,” Chief Executive Ramon Laguarta said.
PepsiCo aims to improve performance in part through new product launches and better brand building, according to Laguarta. The company is also working to identify more structural cost-reduction actions that it plans to implement in the coming months.
For the full year, PepsiCo cut its adjusted earnings outlook to a range of up 1% to up 2%, compared with a prior forecast of up 4% to up 6%. The company narrowed its organic revenue outlook to up roughly 3%, compared with a previous view of up 2% to up 4%.
PepsiCo shares were down 1.58% in Thursday trading following the report.