Cases of Pepsi are shown for sale in a store in Carlsbad, California, April 22, 2017.
Mike Blake | Reuters
PepsiCo A quarterly profit was reported Thursday, beating analysts’ estimates as consumers maintained their pandemic snacking habits.
The company’s shares rose less than 1% in premarket trading.
The company reported, relative to Wall Street expectations based on an analyst survey by Refinitiv:
- Earnings per share: $ 1.21 adjusted versus $ 1.12 expected
- Revenue: $ 14.82 billion versus $ 14.55 billion expected
Pepsi reported net income of $ 1.71 billion, or $ 1.24 per share, for the first quarter, compared to $ 1.34 billion, or 96 cents per share, a year earlier.
Excluding items, the food and beverage giant earned $ 1.21 per share, beating analysts polled by Refinitiv, which was forecasting $ 1.12 per share.
Net sales rose 6.8% to $ 14.82 billion, beating expectations of $ 14.55 billion. Organic sales, which exclude the effects of foreign currency, acquisitions and divestments, increased 2.4% in the quarter.
Frito-Lay North America’s organic sales increased 3%. New products like Doritos 3D Crunch and Cheetos Crunch Pop Mix encouraged consumers to keep snacking. However, the segment’s profits were hurt by the winter storms in February.
The North American beverages business recorded organic sales growth of 2%. The company saw double-digit sales growth for its Bubly and sparkling water Starbucks ready-to-drink coffee.
Quaker Foods North America’s organic sales grew only 1% for the quarter. The segment has benefited most from the home breakfast trend, which may fade as more consumers return to their offices.
The company reiterated its guidance for 2021, which expects organic sales growth in the mid-single-digit range and currency-neutral earnings per share in the high-single-digit range. Pepsi is forecasting strong sales for its North American beverage unit as more consumers visit restaurants and movie theaters, but demand for Quaker Foods products is likely to decline.