PepsiCo on Thursday announced quarterly earnings and revenue that exceeded analysts’ expectations as its struggling North American food division saw a return to volume growth.
The company reported that net revenue increased by 8.5%, while organic revenue grew by 2.6%.
In February, Pepsi reduced prices on Lay’s, Tostitos, Doritos, and Cheetos by up to 15% to attract more shoppers; the efforts are already showing positive results.
The press release stated, “In North America, PepsiCo Foods and PepsiCo Beverages delivered a sequential acceleration in reported net revenue and organic revenue growth. PepsiCo Foods delivered volume growth as innovation and affordability initiatives began to take hold. PepsiCo Beverages volume trends also improved sequentially and versus the prior year.”
Chairman and CEO, Ramon Laguarta, told investors, “We are pleased with our first-quarter results, which featured an acceleration in both net revenue and organic revenue growth – with a notable improvement in convenient foods organic volume. An extensive commercial agenda, which includes the restaging of large global brands, innovation activity and certain affordability initiatives, is being executed well and business performance improved.”
Laguarta continued, “We are encouraged with the resilience of the International business while North America continued to make progress in the first quarter. As we look ahead, we aim to successfully execute our commercial plans and tightly manage costs to help fund investments to accelerate growth. Therefore, we are affirming fiscal 2026 financial guidance and expected cash returns to shareholders – including the previously announced 4 percent increase in the annualized dividend per share beginning with the June 2026 payment, which will represent our 54th consecutive annual increase.”
For the full year, Pepsi reaffirmed its previous forecast that organic revenue will grow by 2% to 4%, and core constant currency earnings per share will increase by 4% to 6%. It also mentioned that the global economy has become more difficult to forecast due to the war in the Middle East.
PepsiCo shares rose 1% in premarket trading following the announcement.
By CEO NA Editorial Staff
