PepsiCo Posts Higher Quarterly Sales, Withdraws Guidance -- Update
April 28 2020 - 7:19AM
Dow Jones News
By Dave Sebastian
PepsiCo Inc. posted higher sales for the first quarter of the
year but withdrew its full-year guidance as it faces uncertainty
amid the coronavirus pandemic.
The beverage giant on Tuesday said sales rose 7.7% from a year
ago to $13.88 billion for the quarter. Analysts polled by FactSet
were expecting $13.19 billion.
The company's organic revenue, which strips out the effect of
currency swings and acquisitions, grew 7.9% for the first three
months of the year.
"There is still a great deal of uncertainty that exists in
relation to COVID-19, including how geographies, retail channels
and consumer behaviors will evolve over time," Chairman and Chief
Executive Ramon Laguarta said in prepared remarks.
Revenue at its North American beverage division, the company's
biggest contributor, rose 7.3% to $4.84 billion.
In its Frito-Lay North America division, which produces potato
chips and other snacks, sales rose 6.8% to $4.07 billion. Sales at
Quaker Foods North America rose 6.7% to $634 million.
Latin America sales rose 5.6%, Europe sales rose 13.5% and sales
in the Asia-Pacific, Australia, New Zealand and China region rose
5.7%. In Africa, the Middle East and South Asia, sales rose 9%.
Net income fell to $1.34 billion, or 96 cents a share, from
$1.41 billion, or $1 a share, in the comparable quarter last
year.
Adjusted earnings were $1.07 a share, ahead of the $1.03 a share
analysts were looking for.
The company said it continues to expect paying $5.5 billion in
dividends for the year and buying back $2 billion in shares. Pepsi
sees a three- to four-percentage-point foreign-exchange translation
effect to hurt its revenue and adjusted earnings for the year.
Pepsi also closed its acquisition of Rockstar Energy Beverages
for $3.85 billion, in a move to expand the company's presence in
the fast-growing energy-drink category. The company already
distributes Rockstar's energy drinks.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
April 28, 2020 07:04 ET (11:04 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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