PepsiCo Reports Mixed Q4 Results with Revenue Dip in North America
PepsiCo (PEP) witnessed a slight decline in revenue during the fourth quarter of 2022, primarily driven by reduced consumer spending in North America on Frito-Lay snacks and beverages.
The company disclosed revenue of $27.78 billion for the October-December period, falling short of analysts' expectations of $27.89 billion, as per data compiled by FactSet. PepsiCo had earlier cautioned about subdued demand in North America, partly attributed to a significant recall of Quaker Oats products.
Moreover, customers have been opting for cheaper alternatives or reducing snack consumption amid ongoing price increases. Despite global growth in snack food and beverage volumes, North American sales in these categories experienced a 3% decline.
However, the company reported a 17% increase in net income to $1.5 billion. Adjusted for non-recurring items, PepsiCo's earnings per share reached $1.96, exceeding the analysts' forecast of $1.94.