The Pepsisoda case is on display at a Costco wholesale store in San Diego, California on April 25, 2025.
Kevin Carter | Getty Images
PepsiCo On Thursday, it reported quarterly revenue and revenue that exceeded analysts’ expectations despite low demand for food and drinks in North America.
The company’s shares rose by about 2% in pre-market trading.
Based on an analyst survey by LSEG, the company reported the following compared to what Wall Street had expected:
Earnings per share: $2.12 adjusted vs. $2.03 forecast: $22.7 billion vs. $222.7 billion
Pepsi reported second-quarter net income attributable to a company that was $1.26 billion, or 92 cents per share, from $3.08 billion ($2.23 per share) a year ago.
Excluding restructuring and impairment charges and other items, the company has earned $2.12 per share.
Net sales increased by 1% to $22.73 billion. The company’s organic revenue, which excludes acquisitions, sales and foreign currency, rose 2.1% during the quarter.
However, the company still sees soft demand for its products. The global volume of Pepsi was reduced by 1.5% with its food and was flat for drinks. Metrics remove pricing and forex changes.
Volume has declined again in North America, but CEO Ramon Lagualta said in a statement that its domestic operations are improving. The company’s North American food division, which includes both Fritray and Quaker foods, has reduced that volume by 1%. Pepsi’s domestic beverage segment reported that its volume fell 2% in the quarter.
As part of Pepsi’s strategy to boost sales in North America, it is leaning towards protein trends and multicultural products like Siete Foods and Sabra. The company is also committed to ensuring in-store availability and product placement.
Pepsi has repeated its year-round outlook. It still expects that the core constant currency revenue per share will change roughly from the previous year, growing at a rate of single figures with low organic income.
In the last quarter, the company reduced revenue forecasts and cited new tariffs, economic volatility and more cautious consumers.
