New York City, NY – PepsiCo announced its quarterly results on Thursday, reporting a mix of outcomes as strong international sales offset weaker demand in North America. The company also adjusted its forecast for core constant currency earnings per share due to factors like new tariffs, economic instability, and a cautious consumer base.
CEO Ramon Laguarta expressed concern over the uncertainties ahead, particularly regarding global trade developments and the potential rise in supply chain costs. He noted that consumer conditions in various markets remain subdued, contributing to an uncertain outlook for the company.
Despite the challenges, PepsiCo reported first-quarter net income of $1.83 billion, a decrease from the previous year. The company’s earnings per share were slightly lower than what analysts had expected, but revenue surpassed projections at $17.92 billion.
Laguarta acknowledged the need for improvement in the North American market, where volume for the food business fell by 1% and the beverage unit saw a decline of 3%. To address these issues, PepsiCo plans to expand its range of multicultural and functional products while focusing on enhancing consumer engagement and improving in-store product availability.
Although facing some setbacks, PepsiCo did experience success in certain areas of its North American business, with products like Pepsi Zero Sugar and Miss Vickie’s chips contributing to market share growth. The company remains optimistic about its outlook for the full year, expecting organic revenue to increase by a low-single digit percentage.
In response to the challenges posed by economic volatility and changing consumer preferences, PepsiCo continues to adapt its strategies and product offerings to ensure sustained growth and competitiveness in the market. The company’s commitment to innovation and consumer-centric initiatives remains a priority as they navigate the evolving landscape of the food and beverage industry.