On October 10, 2023, PepsiCo Inc (PEP, Financial) released its third-quarter 2023 earnings report, showcasing a strong performance across its business segments. The company reported a net revenue growth of 6.7% for the third quarter and 8.9% year-to-date. The earnings per share (EPS) for the third quarter stood at $2.24, marking a 15% increase. Despite a 2% foreign exchange impact on net revenue and EPS, the company's financial health remains robust.
Financial Highlights
According to the earnings report, PepsiCo Inc (PEP, Financial) experienced an organic revenue growth of 8.8% in the third quarter and 11.8% year-to-date. The core EPS for the same periods were $2.25 and $5.83 respectively, with a core constant currency EPS change of 16% for both periods.
Chairman and CEO Ramon Laguarta commented on the company's performance,
We are pleased with our performance as our businesses and associates displayed tremendous agility and resilience across geographies and categories in an evolving and dynamic environment."He further added that the company expects its full-year 2024 organic revenue and core constant currency EPS growth to be towards the upper end of their long-term targets.
Performance Across Segments
The report also provided a detailed breakdown of the company's performance across its various segments. Frito-Lay North America and Quaker Foods North America saw a GAAP reported % change of 7% and 5% respectively. PepsiCo Beverages North America reported an 8% GAAP reported % change, with a 2% impact due to foreign exchange translation. The Latin America segment reported a significant 21% GAAP reported % change, despite a 13% impact due to foreign exchange translation.
Outlook and Guidance
Given the strength of its businesses and a continued focus on cost management initiatives, PepsiCo Inc (PEP, Financial) has raised its full-year 2023 core constant currency EPS growth expectation to 13% from the previously projected 12%. The company also expects its full-year 2023 organic revenue to increase by 10%. For fiscal year 2024, the company expects to deliver results towards the upper end of its long-term target ranges for both organic revenue and core constant currency EPS growth.
