Today, PepsiCo announced that it is lowering its full-year earnings expectations due to increased costs from tariffs and a pullback in consumer spending. PepsiCo shares slipped 2% following the announcement.
Today, in it’s latest earnings release, the company stated that its net revenue fell 1.8% to $17.9 billion in the first quarter.
PepsiCo CEO, Ramon Laguarta stated that the company suffered a downturn in global sales. “Consumers have remained value‐conscious across brands and channels as the cumulative impacts of inflationary pressures have strained budgets and altered food shopping patterns.”
“At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook.” Laguarta noted that PepsiCo is “taking actions” to improve its North American performance as the region’s beverage unit saw volume decline by 3%.
The company also stated that the 25% tariff on aluminum is affecting the business, along with other beverage makers.
Laguarta, informed investors: “As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs.”
For the entire year, Pepsi anticipates its earnings per share to remain roughly unchanged from the previous year, adjusting its expectations from mid-single digit growth.
By CEO NA Editorial Staff
