On July 11, 2024, PepsiCo Inc (PEP, Financial) released its 8-K filing detailing its second-quarter 2024 financial results. PepsiCo, a global leader in snacks and beverages, owns well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos. The company dominates the global savory snacks market and ranks as the second-largest beverage provider in the world, with diversified exposure to carbonated soft drinks, water, sports, and energy drink offerings.
Performance Overview
PepsiCo Inc (PEP, Financial) reported a net revenue growth of 0.8% for the second quarter of 2024, despite facing challenges such as subdued category performance within North America convenient foods and product recalls at Quaker Foods North America. The company achieved earnings per share (EPS) of $2.23, surpassing the analyst estimate of $2.15. This represents a 13% increase in EPS compared to the same period last year.
Financial Achievements
PepsiCo Inc (PEP, Financial) reported strong financial achievements for the second quarter of 2024:
| Metric | Q2 2024 | Year-to-Date 2024 |
|---|---|---|
| Net Revenue Growth | 0.8% | 1.5% |
| EPS | $2.23 | $3.71 |
| EPS Change | 13% | 10% |
| Organic Revenue Growth | 1.9% | 2.3% |
| Core EPS | $2.28 | $3.89 |
Income Statement Highlights
PepsiCo Inc (PEP, Financial) reported a net revenue of $22,599.39 million for the second quarter, aligning closely with the analyst estimate. The company's operating profit increased by 11%, driven by strong performance in divisions such as PepsiCo Beverages North America and Europe, which saw operating profit increases of 37% and 30%, respectively.
Balance Sheet and Cash Flow
The company's balance sheet remains robust, with significant cash returns to shareholders. PepsiCo Inc (PEP, Financial) expects total cash returns to shareholders of approximately $8.2 billion for the full year 2024, comprised of $7.2 billion in dividends and $1.0 billion in share repurchases.
Challenges and Outlook
Despite the positive results, PepsiCo Inc (PEP, Financial) faced challenges such as the impact of foreign exchange and product recalls at Quaker Foods North America. Chairman and CEO Ramon Laguarta stated, "For the balance of the year, we will further elevate and accelerate our productivity initiatives and make disciplined commercial investments in the marketplace to stimulate growth."
“These investments will focus on surgically providing optimal value propositions within certain portions of our North America convenient foods portfolio, amplifying our advertising and marketing initiatives and leveraging our go-to-market distribution capabilities to enable more precise marketplace execution,” said Laguarta.
Guidance and Outlook
PepsiCo Inc (PEP, Financial) updated its 2024 financial guidance, now expecting approximately 4% organic revenue growth and at least 8% core constant currency EPS growth for the full year. The company also anticipates a core annual effective tax rate of 20% and total cash returns to shareholders of approximately $8.2 billion.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from PepsiCo Inc for further details.
