PepsiCo’s first-quarter performance for 2024 exceeded expectations on the back of robust international demand for its snacks and beverages. The company reported a 2% revenue increase to $18.3 billion, with net earnings rising by 5.6% to $2 billion.
Despite challenges such as the Quaker Oats recall, North American sales remained steady, with Frito-Lay revenue up 2% and Pepsi beverage sales up 1%. However, the real growth story lies abroad, particularly in Asia-Pacific and Europe, where sales surged by 11% and 10% respectively.
Ramon Laguarta, Chairman and CEO, PepsiCo, expressed optimism about continued consumer demand growth, echoing the sentiment reflected in their financial guidance for 2024, which includes a targeted organic revenue growth of 4%.
Notably, in the AMESA region, the Convenient Foods category experienced a 4.5% volume growth, driven by high-single-digit increases in South Africa, double-digit growth in India, and mid-single-digit growth in Pakistan. Meanwhile, the Beverage category saw a 2% volume growth, with high-single-digit growth in India and Nigeria, offsetting declines elsewhere.
Also, PepsiCo achieved significant market share gains, particularly in key regions. In China, India, Brazil, Australia, and Pakistan, there was a notable increase in savory snack share, while in Brazil, Turkey, South Korea, Thailand, Vietnam, and Pakistan, beverage share witnessed positive growth trends.
Must Read
