PepsiCo surpasses revenue estimates due to a surge in snacking amid lockdown
New York (US) – PepsiCo Inc surpassed analysts’ estimates with regard to its quarterly revenue and profit on Monday. This was triggered by a surge in demand for snacks such as Fritos and Cheetos amid lockdowns due to the COVID-19 pandemic.
While many were forced to work from home and students had to attend classes online to avoid an increase in infections, consumers made sure to get their hands on more snacks, from potato chips to dips.
Sales of snacks under the Frito-Lay North America unit saw a rise to 7% in the second quarter.
That said, revenue at PepsiCo’s North America beverages unit fell 7% as restaurants and vending machines remain shut down and with sporting events getting delayed.
Chief Executive Officer Ramon Laguarta signalled that there was an improvement in trends as the quarter advanced after the restrictions got lifted.
According to IBES data from RefinitivOverall, net revenue fell about 3% to $15.95 billion, but it still managed to beat analysts’ estimates of $15.38 billion.
Net income attributable to the company fell to $1.65 billion, or $1.18 per share, in the three months ended June 13, from $2.04 billion, or $1.44 per share, a year earlier.
The company earned $1.32 per share, beating Wall Street estimates of $1.25, excluding one-time items.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.