PepsiCo sales surpasses estimates

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PepsiCo reported its quarterly sales grew by more than 5% as consumers bought more of its Tostitos and pancake mixes.

The food and beverage company also provided an outlook for its earnings and revenue for the first time since yanking its forecast in April, when coronavirus pandemic lockdowns hit sales.

Shares of the company rose 1% in premarket trading.

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.

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