Pepsi sales slide as snack, drink demand sags

Pepsi sales slumped as its drinks and Frito Lay snack businesses struggled while inflation-weary shoppers sought value.

PepsiCo on Tuesday lowered its full-year outlook for organic revenue after its second straight quarter of weaker-than-expected sales.

The repercussions of the Quaker Foods North America recalls, weakening demand in the U.S. and business disruptions in some international markets weighed on the company’s performance in the quarter, CEO Ramon Laguarta said in a statement.

For 2024, Pepsi now expects a low-single-digit rise in organic revenue, down from its prior outlook of 4% growth. The company reiterated its forecast for an increase of at least 8% for its core constant currency earnings per share.

Pepsi reported third-quarter net income attributable to the company of $2.93 billion, or $2.13 per share, down from $3.09 billion, or $2.24 per share, a year earlier. Excluding items, the company earned $2.31 per share.

Net sales fell 0.6% to $23.32 billion. Organic revenue, which strips out acquisitions, divestitures and currency changes, rose 1.3% in the quarter.

https://www.nbcnews.com/business/consumer/pepsi-sales-slide-snack-drink-demand-sags-rcna174450

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