PepsiCo, Inc. (NASDAQ:PEP) is turning up the heat with a strong quarter while doubling down on a bold Gatorade overhaul.
The beverage giant is pushing ahead with brand reinvention and global momentum, even as it trims expectations for the year ahead.
First-Quarter Details
The company reported first-quarter adjusted earnings per share of $1.61, outpacing the analyst consensus estimate of $1.55. Quarterly sales of $19.44 billion beat the Street view of $18.94 billion.
Net revenue increased 8.5%, driven by a 3.4-percentage-point benefit from foreign exchange translation.
Organic revenue rose 2.6%, supported by effective net pricing and a modest contribution from volume growth.
Acquisitions and divestitures added a 2.5-percentage-point net benefit to overall revenue growth.
PepsiCo’s North American food unit saw a return to volume growth for the first time in over two years after price cuts on key snack brands helped draw back consumers, CNBC reported.
PepsiCo lowered prices by up to 15% on key snack brands, including Lay’s, Tostitos, Doritos, and Cheetos, in February to revive sales.
PepsiCo Chairman and CEO Ramon Laguarta highlighted the firm’s international business …
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