:max_bytes(150000):strip_icc()/GettyImages-2176481563-8f8cdf9e40bf43bd8dd6b2353acd26a6.jpg "PepsiCo Posts Weaker-Than-Expected Results, Cuts FY Sales Outlook Again")
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Key Takeaways
- PepsiCo reported declining third-quarter revenue and profit as the beverage and snack giant said inflation has continued to impact consumer spending.
- The company again lowered its sales outlook for the year, expecting a low-single-digit sales bump from fiscal 2023, down from an estimated 4% gain previously.
- Company leadership said that inflation continues “to impact budgets and spending patterns.”
PepsiCo (PEP) reported declining third-quarter revenue and profit, and again lowered its full-year sales outlook, as the beverage and snack giant said inflation has continued to impact consumer spending.
The company reported $23.32 billion in revenue, down slightly from the same time last year and below what analysts had expected. PepsiCo’s $2.93 billion in net income also fell year-over-year and missed consensus estimates of analysts polled by Visible Alpha.
Sales improved 0.2% in the company’s North American beverages segment and 6.5% in its operations in Europe, but declined in all other regions, as company leadership noted “the cumulative effects of inflationary pressures continue to impact budgets and spending patterns.”
PepsiCo Lowers FY Sales Outlook for Second Time
For the second straight quarter, PepsiCo lowered its full-year organic sales outlook, now projecting “a low-single-digit increase” from approximately 4% growth, which itself was down from a prior estimate of “at least 4%.”
PepsiCo shares, which were 1.6% lower on the year through Monday’s close, were down a further 0.7% about 45 minutes before the opening bell.