PepsiCo revises 2024 guidance as North America sales lag behind expectations

Posted by Admin October 8, 2024 Bussiness

PepsiCo (PEP) has revised its 2024 sales outlook after its North America and international sales lagged Wall Street’s expectations in the third quarter.

The snack and beverage giant told investors on Tuesday that it now expects to end the year with a low-single-digit increase in organic revenue growth, below than the previously expected 4% growth.

The snack and beverage giant’s shares fell roughly 1% in premarket trading after the release of its quarterly results.

For the rest of the year, Pepsi will “continue to invest in commercial activities and brand support to stimulate consumer demand,” chairman and CEO Ramon Laguarta said in the release.

Laguarta added that Pepsi’s performance in the fiscal third quarter was impacted by “subdued category performance trends in North America,” the impact of recalls at Quaker Foods North America and business disruptions from “rising geopolitical tensions in certain international markets.”

The company posted adjusted third quarter earnings of $2.31 a share, slightly above the $2.30 expected by analysts. But revenue in the quarter trailed behind Wall Street’s estimates, coming in at $23.3 billion, versus the $23.8 billion expected.

All three of PepsiCo’s North America segments fell below expectations, including Frito-Lay, Quaker Foods and PepsiCo Beverages, as it looks to combat consumer pushback of higher prices at the grocery store.