FMCG giant PepsiCo has reported stronger-than-expected quarterly earnings, driven by robust international sales and improving performance in North America.
The company reported adjusted earnings per share (EPS) of US$2.12 on revenue of $22.73 billion, up 2.1 per cent for the quarter, outperforming analyst expectations. Year-to-date revenue is up by 1.7 per cent.
Net revenue was $22.726 billion, and profit attributable to shareholders was $1.263 billion.
PepsiCo chairman and CEO Ramon Laguarta credited the company’s overseas operations for much of the quarter’s strength.
“Our international business momentum continued, while our North America businesses improved their execution and competitiveness in key subcategories and channels,” Laguarta said in a statement.
While maintaining its full-year EPS forecast to hold steady in constant currency, PepsiCo upgraded its 2025 outlook, now anticipating a smaller core EPS decline compared to the earlier estimate. Laguarta attributed this positive revision to a favourable currency environment, with a weaker US dollar lifting earnings abroad.
The company is also pivoting towards changing consumer tastes by announcing a rebranding of its Lay’s and Tostitos snacks to eliminate artificial colours and flavours by year-end.
During the company’s earnings call with investors, Laguarta emphasised PepsiCo’s responsiveness to consumer trends.
“If the consumer is telling us that they prefer products that have sugar and they prefer products that have natural ingredients, we will give the consumer products that have sugar and have natural ingredients,” Laguarta said.
The company also revealed plans to expand the use of healthier fats such as avocado and olive oil across its product lines, replacing more commonly used oils like canola and soybean.
