PepsiCo reported better-than-expected revenue in the first quarter on strong international demand for its snacks and beverages.
The Purchase, New York-based company said revenue rose 2% to $18.3 billion for the January-April period. That was higher than the $18 billion Wall Street forecast, according to analysts polled by FactSet.
Pepsi reaffirmed its financial guidance for 2024, including organic revenue growth of 4%. The company has said it expects to return to more normal rates of growth this year after several years of inflation-driven price increases.
That may have disappointed investors who have grown used to stronger growth at PepsiCo. Last year organic revenue grew 9.5%, for example. PepsiCo's shares fell more than 2.5% in morning trading Tuesday.
In North America Frito-Lay revenue rose 2% while Pepsi beverage sales were up 1%. Sales were hurt by a recall early in the quarter of Quaker Oats cereal, bars and snacks because of potential contamination with salmonella. Quaker Foods sales dropped 24% during the quarter.
But the company saw 11% sales growth in Asia Pacific and 10% sales growth in Europe.
PepsiCo Chairman and CEO Ramon Laguarta said the company is optimistic that consumer demand will continue to rise this year in the U.S. and elsewhere.
“The consumer, globally, we think is very resilient,” Laguarta said during a conference call with investors. “It's basically supported by two facts: very low unemployment or quite low unemployment globally and wages growing at a good pace in the majority of the countries where we participate.”
In Europe, sales were driven by demand in Eastern Europe, Laguarta said. In Western Europe, consumers saw fewer PepsiCo snacks and drinks on grocery shelves during the quarter. Carrefour, one of Europe’s largest supermarket chains, announced in January that it was pulling PepsiCo products from stores in France, Belgium, Spain and Italy due to unacceptable price increases. The two companies resolved their pricing dispute and Carrefour began restocking PepsiCo products in early April.
The company said it also saw double-digit organic revenue growth in Mexico, Brazil, Egypt, Pakistan, China and Australia.
But Laguarta added a note of caution. Consumer spending in China remains cautious, he said, and PepsiCo is also keeping a close eye on lower-income consumers in the U.S., who are buying fewer snacks or switching to store brands in the face of higher prices.
“The lower-income consumer in the U.S. is stretched,” he said. “That’s a consumer that we are emphasizing in our commercial programs and we are learning how best to keep that consumer in our categories.”
PepsiCo has leaned heavily into price increases over the past two years to combat higher ingredient costs. The fourth quarter of 2023 was the company’s eighth straight quarter of double-digit percentage price increases.
Those increases moderated in the first quarter. PepsiCo said net pricing was up 5% globally during the quarter, while volumes fell 2%. PepsiCo has said some of that volume decline is strategic. The company has been shrinking package sizes to meet consumer demand for convenience and portion control.
PepsiCo said its net earnings rose 5.6% to $2 billion in the first quarter. Excluding special items, the company earned $1.61 per share. That beat Wall Street’s forecast of $1.52.
FILE - Boxes of Pepsi are displayed in a grocery store, Ill., Thursday, Feb. 10, 2022. PepsiCo reports earnings on Tuesday, April 23, 2024. (AP Photo/Nam Y. Huh)
CALGARY, Alberta (AP) — Lauren Coughlin held onto the lead Friday in the CPKC Women’s Open, while Canadian star Brooke Henderson was derailed by closing bogeys at windy and smokey Earl Grey Golf Club.
Coughlin followed her opening 4-under 68 on Thursday in chilly and windy conditions with a 70 on Friday to get to 6 under, a stroke ahead of Hannah Green and Haeran Ryu. The temperature made it into the 70s after barely climbing into the 60s on Thursday.
“I think I handled it really well overall,” Coughlin said. “It was just really difficult to judge how far the ball was going to go with the wind and the crosswind and how firm the greens got. And they had some tough pins, especially considering the direction of the wind.”
Playing through a smokey haze from wildfires, Henderson bogeyed the final four holes in her afternoon round for a 73 that left her seven strokes back at 1 over. She won the 2018 tournament.
Coughlin is coming off a fourth-place finish two weeks ago in France in the major Evian Champions. The 31-year-old former University of Virginia player is winless on the LPGA Tour.
On Friday, she had three front-none birdies and dropped a stroke on the par-4 11th. In two rounds, she's 7 under on the first nine holes and 1 over on the second nine.
“I putted extremely well,” Coughlin said. “Two-putted really well all day. Took advantage of the front nine, which you have to, and then kind of hold on on the back nine.”
Green matched Coughlin with a 70. The Australian is a two-time winner this year, taking the HSBC Women’s World Championship in Singapore in February and the JM Eagle LA Championship in April.
“It was tough again out there,” Green said. “There was some pretty strong wind gusts, especially our last few holes, so committing to the shot you were envisioning was kind of difficult.”
Ryu bogeyed the 18th for 69.
“The weather is really bad,” Ryu said. “Is a little bit cold and so windy.”
The 23-year-old South Korean player won the Walmart NW Arkansas Championship last year for her first LPGA Tour title. She was second last week in Ohio in the Dana Open.
Three-time champion Lydia Ko had a 71 to join second-ranked Lilia Vu (70) and Jennifer Kupcho (72) at 3 under. Ko won as an amateur in 2012 at age 15, successfully defended her title as an amateur in 2013 and won as a professional in 2015.
“It’s not easy — and I think the scores are showing,” Ko said. “Anything kind of under par the past couple days is a really solid round. I’m pretty happy with the way I started this week.”
Kupcho topped the leaderboard at 8 under after birdieing five of the first eight holes in her morning round, then was 5 over the rest of the way. She had a double bogey on the par-4 16th, four bogeys and a birdie on her final nine holes.
“I’m pretty upset,” Kupcho said. “I think in hindsight I still hit 15 greens. Like I was hitting the ball really good. Three-putted 10 and 11 and four-putted 16. I didn’t play bad. Just had a couple shaky putts down the stretch — and that’s going to happen.”
Lexi Thompson was in the group with Henderson tied for 26th at 1 over after a 73 The American plans to play a limited schedule after this season.
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Lexi Thompson, of the United States, chips on the first hole during the second round at the LPGA Canadian Women's Open golf tournament in in Calgary, Alberta, Friday, July 26, 2024. (Jeff McIntosh /The Canadian Press via AP)
Jennifer Kupcho, of the United States, watches her tee shot on the fifteenth hole during the second round at the LPGA Canadian Women's Open golf tournament in in Calgary, Alberta, Friday, July 26, 2024. (Jeff McIntosh /The Canadian Press via AP)
Jennifer Kupcho, of the United States, lines up a putt on the fourteenth green during the second round at the LPGA Canadian Women's Open golf tournament in in Calgary, Alberta, Friday, July 26, 2024. (Jeff McIntosh /The Canadian Press via AP)
New Zealand's Lydia Ko hits a tee shot on the first hole during the second round at the LPGA Canadian Women's Open golf tournament in in Calgary, Alberta, Friday, July 26, 2024. (Jeff McIntosh /The Canadian Press via AP)
Korea's Haeran Ryu hits a tee shot on the fourth hole during the second round at the LPGA Canadian Women's Open golf tournament in Calgary, Alberta, Friday, July 26, 2024. (Jeff McIntosh/The Canadian Press via AP)
Canada's Brooke Henderson hits a tee shot on the second hole during the second round at the LPGA Canadian Women's Open golf tournament in Calgary, Alberta, Friday, July 26, 2024. (Jeff McIntosh/The Canadian Press via AP)
Lauren Coughlin, of the United States, hits from the fairway on the sixth hole during the second round at the LPGA Canadian Women's Open golf tournament in Calgary, Alberta, Friday, July 26, 2024. (Jeff McIntosh/The Canadian Press via AP)
Lauren Coughlin, of the United States, hits a tee shot on the seventh hole during the second round at the LPGA Canadian Women's Open golf tournament in Calgary, Alberta, Friday, July 26, 2024. (Jeff McIntosh/The Canadian Press via AP)
