PepsiCo has posted stronger-than-expected Q3 results and announced a leadership transition, as the company sharpens its focus on growth, cost control, and investor expectations.
PepsiCo’s Q3 net revenue rose 2.6 per cent year-on-year to US$23.94 billion, ($36.5 billion) with pricing and international momentum offsetting softness in North America.
The Latin America Foods business grew 4 per cent organically. Europe, the Middle East and Africa (EMEA) delivered 5.5 per cent organic growth, while Asia Pacific Foods saw a modest 1 per cent organic increase.
PepsiCo Beverages North America (PBNA) delivered 2 per cent organic revenue growth. Management cited strong execution across the Pepsi and Mountain Dew portfolios, as well as solid uptake of innovation platforms, such as Pepsi Zero Sugar.
“As we look ahead to the balance of this year and beyond, our top priorities are to accelerate growth and aggressively optimise our cost structure,” said chairman and CEO Ramon Laguarta.
“To accomplish this, we are introducing a strong pipeline of innovation to accelerate portfolio transformation, continuously sharpening our price pack architecture to provide good value to consumers, and right-sizing our entire cost base to help fund our activities.”
In a major leadership update, Walmart US CFO Steve Schmitt will join PepsiCo as CFO on November 10, succeeding longtime executive Jamie Caulfield, who will stay on in an advisory role through late next year.
Schmitt’s expertise in retail, supply chain, and financial disciplines is seen as vital as PepsiCo aims to enhance operating leverage and address pressures from activist investors.
“Steve’s experience working with complex supply chains, adapting to the dynamic retail landscape and omnichannel consumers, and delivering operational excellence on a large scale will be impactful at PepsiCo,” added Laguarta.
“He will play a crucial role as we accelerate growth, optimise our cost structure, and create greater value for our shareholders.”
