The company’s organic revenue rose 2.1% on the quarter, while total revenue rose 1.6% to $12.05 billion. Guilt-free products account for 45% of the company’s total revenue, helping the company post two straight quarters of rising sales after suffering eight quarters of decline.
PepsiCo’s North American segment rose 2.3% with $4.46 billion in revenue. The beverage unit is the company’s largest segment.
Analysts expected the company to post higher gross margins, operating margins and organic revenue. The company’s net income was $1.32 billion or $0.91 EPS, up from $931 million and a $0.64 EPS during the same period a year prior.
PepsiCo, Inc. NYSE: PEP Stock Lower
PepsiCo’s stock is down nearly 1% in premarket on Wednesday. The company’s EPS excluding items was $0.94 per share. The company’s stock has suffered in April following a commercial featuring Kendall Jenner that consumers felt was out of touch. The backlash caused the company to remove the commercial.
Analysts forecasted the company’s revenue to come in at $11.98 billion on the quarter. The company’s sales in North Africa, Asia and the Middle East saw volume rises, while the rest of its sectors saw a slight decline. PepsiCo is working on cost-cutting measures to pad their bottom line.
Frito Lay North America, one of the two most important businesses in the company’s portfolio, posted a 4% rise. The company expects its full year earnings to rise to $5.09 on the year, an 8% increase year over year.
Coca-Cola (KO), the company’s main rival, announced that the company will cut 1,200 jobs following a difficult start to the year, with a first-quarter sale declines to blame.