Pepsi soft drinks are on display in a supermarket in San Francisco, California.
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PepsiCo On Thursday, quarterly sales were reported to have increased more than 5% as consumers bought more tostitos and pancake mixes.
The company’s shares rose 2% in premarket trading.
The company reported, relative to Wall Street expectations based on an analyst survey by Refinitiv:
- Earnings per share: $ 1.66, adjusted versus expected $ 1.49
- Revenue: $ 18.09 billion versus $ 17.23 billion expected
Pepsi reported net earnings of $ 2.29 billion, or $ 1.65 per share, for the third quarter, compared to $ 2.1 billion or $ 1.49 per share last year. The company spent $ 147 million this quarter on costs related to the coronavirus pandemic, such as: B. for more expensive workers and the purchase of personal protective equipment.
Excluding items, the company earned $ 1.66 per share, beating analysts polled by Refinitiv at $ 1.49 per share.
Net sales rose 5.3% to $ 18.09 billion, beating expectations of $ 17.23 billion. Organic sales increased 4.2% for the quarter.
Both the Frito-Lay and Quaker Foods businesses posted 6% organic sales growth, despite the fact that economies are opening up and consumers are more comfortable leaving their homes. Frito-Lay saw higher sales of its Tostitos, Cheetos and Doritos, while Quaker Foods’ pasta, macaroni and cheese dishes saw double-digit sales growth.
Organic sales for the North American beverage unit increased 3% in the quarter. Its brand of sparkling mineral water, Lipton Tea and Starbucks All licensed products saw double-digit sales growth. The company also said that Bubly, Gatorade Zero and Mountain Dew Zero Sugar have combined sales of over $ 1 billion so far this year.
Pepsi’s international business saw organic sales growth of 4% driven by higher demand for snacks. CEO Ramon Laguarta said the company expects its beverages business to rebound for longer due to the reintroduction of pandemic restrictions. For example, Spain said Tuesday it would lock Madrid and the surrounding areas due to a surge in Covid-19 cases.
The food and beverage giant also gave an outlook for the remainder of fiscal 2020. It withdrew its previous forecast in late April, citing the uncertainty surrounding the coronavirus pandemic. Pepsi now expects 4% organic revenue growth in line with its previous outlook and core earnings per share of $ 5.50, a decrease of 38 cents from its original forecast.