Q2 2024 PepsiCo Inc Earnings Call Transcript
Key Points
- PepsiCo Inc (PEP) has confidence in achieving mid-single-digit organic sales growth in the second half of 2024, driven by productivity and cost reduction efforts.
- Quaker's supply chain recovery is expected to be nearly 100% by Q4, leading to significant business growth.
- International markets have shown strong performance, with a 7% growth in the first half of the year, and are expected to continue this trend.
- The North America beverage business has been highlighted for its profitable growth and improved margins, with increased investments in advertising and marketing.
- PepsiCo Inc (PEP) has a strategic focus on growing its Frito-Lay North America business, with targeted interventions to address value gaps and drive volume and net revenue growth.
- The US consumer environment remains challenging, with low single-digit growth in recent quarters.
- Frito-Lay North America experienced soft volume results in Q2, necessitating incremental actions to drive recovery.
- The salty snack category as a whole is under pressure, with limited responsiveness to promotions.
- Latin America's organic revenue was weaker than expected, with specific issues in Mexico due to election-related changes in income distribution.
- The cautious consumer behavior in China, with a focus on saving rather than spending, poses challenges for growth in that market.
Good morning, and welcome to PepsiCo's 2024 second-quarter earnings question-and-answer session. (Operator Instructions) Today's call is being recorded and will be archived at www.pepsico.com.
It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President, Investor Relations. Mr. Pamnani, you may begin.
Thank you, operator. Good morning, everyone. I hope everyone has had a chance this morning to review our press release and prepared remarks, both of which are available on our website. Before we begin, please take note of our cautionary statement.
We may make forward-looking statements on today's call, including about our business plans and updated 2024 guidance. Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, July 11, 2024, and we are under no obligation to update.
When discussing our results, we refer to non-GAAP measures, which
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