On October 10, 2023, PepsiCo Inc (PEP, Financial) released its third-quarter earnings report for 2023. 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. However, the year-to-date EPS was $5.62, a decrease of 7% compared to the same period last year.
Performance and Challenges
PepsiCo Inc (PEP, Financial) has shown resilience and agility across geographies and categories in a dynamic environment. The company's businesses and associates have displayed tremendous agility and resilience. Despite the challenges, the company has raised its full-year EPS guidance for 2023, expecting a 13% increase in core constant currency EPS, up from the previously projected 12%.
Financial Achievements
The company's organic revenue growth for the third quarter and year-to-date 2023 stood at 8.8% and 11.8% respectively. The core EPS for the same periods were $2.25 and $5.83, marking a 16% increase in core constant currency EPS change for both periods. PepsiCo Inc (PEP, Financial) continues to expect a 10% increase in its full-year 2023 organic revenue.
Income Statement, Balance Sheet, Cash Flow Statement
According to the company's condensed consolidated statement of income, the increase in selling, general and administrative expenses for the 12 and 36 weeks ended September 9, 2023, primarily reflects higher selling and distribution costs as well as higher advertising and marketing expenses. The company's condensed consolidated statement of cash flows and balance sheet further detail the financial performance of PepsiCo Inc (PEP, Financial).
Company's Outlook
Chairman and CEO Ramon Laguarta expressed confidence in the company's performance in the coming years. He stated,
We believe that our businesses can continue to perform well in the coming years with category growth normalizing, as we have made numerous investments in our brands, manufacturing capacity, go-to-market systems, supply chain, technology, and people, to execute against our strategic framework and modernize our company."The company expects its full-year 2024 organic revenue and core constant currency EPS growth to be towards the upper end of its long-term targets.
