Revenue topped expectations as international snack and beverage demand outpaced weaker North American trends, where budget-conscious consumers and higher fuel costs weighed on volumes.
PepsiCo reported mixed second-quarter results, with revenue beating Wall Street estimates but adjusted earnings narrowly missing forecasts as weakness in North America offset stronger overseas demand. Net revenue rose 6.4% to $24.2 billion in the April-June period, above the $23.9 billion analysts expected, while net income more than doubled to $2.98 billion. Adjusted for one-time items, the company earned $2.18 per share, below the $2.19 analysts expected. In North America, snack sales volumes were flat and beverage volumes fell 4% as consumers tightened budgets amid economic concerns and higher gas prices. Overseas, snack volumes rose 3% and beverage volumes increased 2%, helped in part by World Cup-themed products including limited-edition Lay’s flavors. PepsiCo said it plans to keep investing in affordability and is also pushing healthier offerings, including Gatorade Lower Sugar introduced in March.