PepsiCo Surpasses Q3 Revenue Expectations Despite Decline in North American Sales

New York, Oct 9 (AP) - PepsiCo has reported a stronger-than-expected revenue in the third quarter, despite experiencing lower demand for its snacks and drinks in North America.

The company's revenue increased by 2.6% to $23.94 billion for the July-September period, surpassing Wall Street's expectations of $23.84 billion, as estimated by analysts surveyed by FactSet.

In North America, PepsiCo observed a decline in sales volumes for its Frito-Lay snacks and other foods by 2% and a decrease in beverage sales volumes by 3%. However, sales volumes saw an uptick in Latin America and Asia.

Net income dipped by 11% to $2.6 billion. On an adjusted basis, accounting for one-time items, the company earned $2.29 per share, exceeding analysts’ predictions of $2.26.

Based in Purchase, New York, PepsiCo disclosed pressure from Elliott Investment Management, an activist investor that recently acquired a $4 billion stake in the company.

In a letter addressed to PepsiCo’s board last month, Elliott highlighted issues such as a loss of market share in the North American beverage sector and dwindling growth and profitability in the North American food segment.

Elliott is urging PepsiCo to streamline its food and beverage portfolio to reinvest in core brands like Mountain Dew and explore new product avenues like protein snacks. The investor also suggests PepsiCo consider refranchising its North American bottlers, similar to a move rival Coca-Cola made in 2017. (AP) SCY SCY

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