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PepsiCo (PEP) Q1 Earnings & Sales Beat, International Unit Aids
PepsiCo (PEP) Q1 Earnings & Sales Beat, International Unit Aids
About this update from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-
PepsiCo, Inc. PEP has reported robust first-quarter 2024 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate and improved year over year. The company’s results have been mainly aided by improvements in its international business, which delivered significant volume growth and organic revenue growth of 9%.PEP noted that each of its international businesses recorded at least high-single-digit organic revenue growth, along with organic volume growth across most units. Within the international business, organic revenues increased 9% for the convenient food business and 10% for the beverages category.The results also reflect gains from strength and resilience in its categories, diversified portfolio, modernized supply chain, improved digital capabilities, flexible go-to-market distribution systems, and robust consumer demand trends.Shares of the Zacks Rank #3 (Hold) company have gained 6.6% in the past three months compared with the industry’s 2.6% growth. Quarter in DetailPepsiCo’s first-quarter core EPS of $1.61 beat the Zacks Consensus Estimate of $1.52 and increased 7.3% year over year. In constant currency, core earnings improved 7% from the year-ago period, backed by the mitigation of inflationary pressures through cost-management and revenue-management initiatives. The company’s reported EPS of $1.48 rose 6% year over year in the quarter. The impact of currency rates on the quarter’s EPS was neutral.Net revenues of $18,250 million rose 2.3% year over year and surpassed the Zacks Consensus Estimate of $18,155 million. Revenues gained from an improved price/mix in the reported quarter, offset by a unit volume decline of 0.5% for the convenient food business and a flat unit volume for the beverage business. Foreign currency impacted revenues by 0.5%.On an organic basis, revenues grew 2.7% year over year, driven by growth across categories and geographies, except for QFNA. The consolidated organic volume was down 2%, while effective net pricing improved 5% in the first quarter. Pricing gains were driven by strong realized prices across all segments, except for QFNA and AMESA.Our model predicted year-over-year organic revenue growth of 3.7% for the first quarter, with an 8.1% gain from price/mix and a 4.4% decline in volume.PepsiCo, Inc. Price, Consensus and EPS SurprisePepsiCo, Inc. price-consensus-eps-surprise-chart | PepsiCo, Inc....