PepsiCo, Inc. (NASDAQ: PEP) has reported its third-quarter 2024 results, revealing a 0.6% decline in net revenue and a 5% decrease in earnings per share (EPS) on a GAAP basis compared to the same period last year. However, organic revenue growth for the third quarter was 1.3%, and core EPS increased by 5% on a constant currency basis.
The company's year-to-date net revenue performance showed a 0.7% increase, with a 4% change in EPS. Organic revenue growth for the year-to-date period was reported at 1.9%, and core EPS increased by 7% on a constant currency basis.
In terms of regional performance, the Frito-Lay North America segment experienced a decline in net revenue, while Latin America and Europe saw increases. Operating profit and EPS changes varied across different segments, with significant impacts on certain divisions such as Quaker Foods North America and Latin America.
Looking ahead, PepsiCo has revised its full-year 2024 guidance, now expecting a low-single-digit increase in organic revenue, down from the previous estimate of approximately 4% organic revenue growth. However, the company maintains its expectation of at least an 8% increase in core constant currency EPS for the year.
PepsiCo's Chairman and CEO, Ramon Laguarta, commented on the company's performance, acknowledging the challenges faced in the third quarter, including subdued category performance trends in North America and business disruptions due to geopolitical tensions in certain international markets. Despite these challenges, the company remains focused on making investments to improve marketplace competitiveness and stimulate consumer demand.
The company will continue to invest in commercial activities and brand support for the remainder of the year, with a focus on managing costs to better align with the current subdued growth environment.
Today the company's shares have moved 0.9% to a price of $168.77. For the full picture, make sure to review PepsiCo's 8-K report.
