PepsiCo Sales Rise as Beverage Segment Improves
October 01 2020 - 7:36AM
Dow Jones News
By Matt Grossman
Strong global snack and food sales and improvement in the
company's beverage business drove revenue growth for PepsiCo Inc.
in the latest quarter, the Purchase, N.Y., company said
Thursday.
Pepsi's third-quarter revenue grew 5.3% to $18.09 billion from
$17.19 billion a year earlier. Analysts surveyed by FactSet had
forecast revenue of $17.23 billion.
The company's organic revenue growth, which adjusts for currency
effects and strips out acquisitions, was 4.2% in the quarter, which
ended Sept. 5.
Revenue for Pepsi's North American beverage division climbed 6%
to $5.96 billion from $5.64 billion in last year's third quarter.
That reversed a trend during the prior quarter, when beverage
revenue fell by roughly 7% year over year during the coronavirus
pandemic.
For the Frito-Lay North America division, which produces Lay's
potato chips, Cheetos and other packaged snacks, sales grew 7% to
$4.4 billion in the third quarter.
Quaker Foods North America sales ticked up 6% to $608
million.
Pepsi's sales in its Africa, Middle East and South Asia region
and in its Asia Pacific, Australia and New Zealand and China region
surged ahead, climbing 31% and 15% year over year, respectively.
Sales in Europe rose 3% while Latin American sales were down by
13%, Pepsi said.
The company's profit was $1.65 a share, up from $1.49 a share in
last year's third quarter. Its adjusted profit was $1.66 a share,
beating analysts' expectations for $1.49 a share.
For the full year ending in December, Pepsi said it anticipates
organic revenue growth of 4% year over year and an adjusted profit
of $5.50 a share.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
October 01, 2020 07:21 ET (11:21 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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