PepsiCo beat Wall Street expectations for first-quarter revenue as demand held steady for the giant’s Tropicana juices and Cheetos in international markets, it was reported today.
The news comes after a surprise drop in quarterly sales in February, mainly in the US market.
Consumers have remained resilient in paying increased prices for PepsiCo’s Lays Chips and 7UP products across international markets.
This has help offset a slowdown in its major US market.
Several rounds of price hikes in the US have led consumers to push back on the company’s soft drinks and juices.
Inflation has also led customers to be more mindful of spending.
Price Hikes
The company’s international business accounted for 40% of its total fiscal revenue in 2023.
This is despite pushback in Europe due to price hikes, with Carrefour asserting in January it would not be stocking PepsiCo brands “due to unacceptable price increases.”
PepsiCo’s average prices jumped 5% in the quarter ending 23 March, as organic volume slipped 2%.
While still an increase, it is lower than the 9% average increase in the fourth quarter of 2023.
Sales at the company’s North America beverage unit, PepsiCo’s largest business, rose 1% in the first quarter.
Organic volumes fell in the same period by 5%.
Revenue
The company’s net revenue rose to $18.25 billion in the quarter, up from $17.85 billion a year prior.
Analysts had estimated $18.07 billion, according to data from the London Stock Exchange Group.
PepsiCo maintained its annual organic sales and core profit forecasts.
On an adjusted basis, the company earned $1.61 per share.
Analysts had forecast a profit of $1.52 per share.
Read More: PepsiCo Reports Rare Sales Decline Amid Price Hikes
