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PepsiCo (NASDAQ:PEP) traded slightly lower in early action on Tuesday, despite topping consensus estimates with its Q1 earnings report.
The beverage giant reported organic sales were up 2.7% during the quarter vs. +2.3% consensus. Total revenue was up 2.2% year-over-year during the quarter to $18.25B vs. $18.11B consensus. Volume was down 0.5% during the quarter for the convenient foods part of the business, and was flat in the beverages business. The biggest drop by segment was the 22% slide for Quaker Foods North America.
Operating profit was up 5% on a constant-currency basis during the quarter, led by a 50% gain for the Europe segment and a 22% improvement for the Latin America segment.
CEO update: “Our businesses remained agile and performed well, with a strong performance from our International business. We delivered a sequential improvement in our volume trends, and year-over-year growth in our net revenue, operating profit margin and EPS – despite the impact of certain product recalls at Quaker Foods North America and a difficult net revenue growth comparison from the prior year.”
In terms of guidance, PepsiCo (PEP) expects at least 4% organic revenue growth for the full year and at least 8% core constant currency EPS growth. In addition, PepsiCo (PEP) continues to expect an approximate one-percentage-point foreign exchange translation headwind to impact reported net revenue and core EPS growth based on current market consensus rates. The guidance implies 2024 core EPS of at least $8.15 vs. $8.16 consensus. PepsiCo (PEP) said it will continue to elevate and accelerate its productivity initiatives to support continued investments in the company’s brands, capabilities and pep+ initiatives.
Shares of PepsiCo (PEP) fell 0.26% in premarket trading on Friday. Rival Coca-Cola (KO) shed 0.07% in the early session.
