PepsiCo posts better-than-expected second quarter despite lower US sales
Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period, PepsiCo said on Thursday, while beverage sales were down 2% in the region.
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But sales rose in some other regions, including Latin America and Asia.
Revenue rose less than 1% to 22.7 billion dollars (£17 billion) in the April-June period. That was higher than the 22.3 billion dollars Wall Street forecast, according to analysts polled by FactSet.
PepsiCo's net income fell 59% to 1.3 billion dollars (£970 million). Adjusted for one-time items, PepsiCo earned 2.12 dollars per share. That was also higher than the 2.03 dollars analysts forecast.
PepsiCo shares rose more than 2% in pre-market trading on Thursday.
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PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance on Thursday.
Its tariff costs have risen since then. In June, the Trump administration hiked the tariff on imported aluminium from 25% to 50%.
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