PepsiCo reported revenue growth in the third fin. quarter 5.3% due to the increase in sales of snacks, as well as significant improvements of its global business in the beverage industry. The company gave a forecast annual profits above expectations on wall Street.
PepsiCo (PEP) today before the market open have reported better results of its third quarter ended September 5.
Shares of PepsiCo fully recovered after a fall in February and March due to the outbreak of the pandemic in the fashion industry and demonstrate an increase of 1.4% YTD and by 17.34% over the last 6 months.
Shares of the largest competitor, PepsiCo, the Coca-Cola company (KO) has fallen more – by 10.8%, but show almost the same growth over the past half-year at 17.2%.
Key figures 3rd quarter, PepsiCo
The company reported net profit per share by 6% to us $1.66 (compared to value), which is $0.18 more than the average analyst estimate of $1,48. 2 previous quarter showed a decline of 14%, which PepsiCo is explained by the loss of such large sales channels such as cafes, cinemas and gas stations. The total quarterly profit of Pepsi was $2.29 billion compared with $2.1 billion a year earlier.
The company’s management also noted the quarterly loss of $147 million for costs related to pandemic, such as increasingly expensive labor and purchase of PPE.
The total income of Pepsi for the 3rd quarter grew by 5.3% and amounted to $18,09 billion, also above the analytical assessment of $17, and 21 billion In last second quarter, total revenue decreased by 3% compared with last year. To see a history of revenue and profit PepsiCo for the last 2 years can link.
Details
PepsiCo reported that the main increase was in the division of Frito Lay snacks and Quaker Foods, whose income in North America increased by 7% and 6% respectively.
Highest revenue growth by geographical segments has traditionally occurred in North America, all other regions except Latin America also showed significant growth.
Commenting on the report last quarter, the CEO of PepsiCo Ramon over thirty years, said: “We are seeing the continued development of sustainable consumer habits, considering that consumers spend more time at home. It benefits the sales of our homemade breakfasts, snacks and other products.”
From comments on the report of the 3rd quarter of investors expected to hear about the situation with the sales of drinks, as their major distribution channels is still limited due to quarantine measures and reduction of traffic in cafes, cinemas and other institutions around the world.
The over thirty years noted that the company saw “significant improvement of the global business manufacture of beverages”, besides beverage prices rose on average by 6%.
Forward-looking statements
PepsiCo updated its financial forecast 2020 after the end of April declined from the forecasts due to uncertainties associated with the pandemic.
The company’s management announced that in 2020, expects earnings per share of $5.50, which is that $0.38 below its initial forecast, but better than analysts ‘ forecasts of $5,36. PepsiCo also said that annual revenue growth will be approximately 4%.
The main competitor of Pepsi, Coca-Cola will report its third quarter (ending in September 2020) October 22 before market open. Investors and market experts will evaluate the extent to which it was able to recover the sale. Compared to Pepsi, profits and revenues of Coca-Cola in the previous second quarter fell much more.
