Pepsi Earnings Beat Expectations Amid Slumping Demand

San Diego, California – PepsiCo reported its quarterly earnings on Thursday, revealing that it surpassed analysts’ expectations despite facing a decline in demand for food and drinks across North America.

The company posted a second-quarter net income of $1.26 billion, or 92 cents per share, down from $3.08 billion, or $2.23 per share, at the same time last year. However, when excluding certain restructuring and impairment charges, Pepsi earned $2.12 per share, exceeding Wall Street’s predictions.

Pepper’s net sales reached $22.73 billion, a rise of 1% from the previous year, while organic revenue climbed by 2.1%. Despite these gains, the company experienced a 1.5% drop in worldwide food volume, and its beverage volume remained flat.

CEO Ramon Laguarta acknowledged the challenges but noted an improvement in its domestic operations. The food division, which includes Frito-Lay and Quaker Foods, witnessed a 1% decline in volume. Meanwhile, Pepsi soda sales performed well, with Pepsi Zero Sugar reporting double-digit growth.

In efforts to enhance its North American performance, Pepsi is focusing on high-protein products and cultural offerings from partners like Siete Foods and Sabra. The company has also shut down two manufacturing plants and is optimizing its marketing expenditures to improve profitability.

Despite current struggles, Pepsi reiterated its full-year forecast, anticipating core constant currency earnings per share to remain stable and organic revenue to grow by a modest single digit.