PepsiCo expects smaller drop in annual profit on U.S. soda demand, weaker dollar
The Gatorade maker's shares were up 1.6 per cent in premarket trading after the company reported better-than-expected results for the second quarter. The stock is down about 11 per cent this year.
PepsiCo, like its rival Coca-Cola, has responded to a shift in consumer demand for healthier drinks and snacks by offering more options, such as its recently acquired prebiotic soda brand Poppi. It has also launched new flavors of its popular snacking brands, Lay's and Doritos, to cater to a diverse palate.
The Quaker Oats parent is also trying to offer more products at lower price points to appeal to cost-conscious consumers, after raising prices over the past few years to shield its margins.
PepsiCo's international business accounted for about 40 per cent of its total net revenue in 2024, and a stronger dollar was expected to dampen PepsiCo's profits at the start of the year.
However, the dollar has weakened over the past few months, easing some pressure on PepsiCo's annual core earnings, CEO Ramon Laguarta said in a statement.
The company now expects full-year core earnings per share to fall 1.5 per cent, compared with a three per cent decline expected previously.
Analysts' expectations for PepsiCo were muted heading into the second quarter at a time when tariffs were expected to drive up supply chain costs, and U.S. consumers looked for healthier, more affordable snacking options.
Organic revenue at PepsiCo's North America beverage unit rose one per cent in the second quarter, following a two per cent fall in the prior three-month period.
PepsiCo's second-quarter revenue rose about one per cent to US$22.73 billion, compared with analysts' average estimate of a 0.99 per cent decline to $22.28 billion, according to data compiled by LSEG.
Excluding certain impairment charges, PepsiCo earned $2.12 per share, beating estimates of $2.03 per share.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Anil D'Silva)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
27 minutes ago
- CTV News
Toronto's El Mocambo will continue as concert venue: new owner
Our Lady Peace play to a packed crowd as they mark the re-opening of the iconic Toronto music venue The El Mocambo on Saturday, October 30, 2021. THE CANADIAN PRESS/Chris Young A spokesperson for the new owner of the El Mocambo says concerts will continue to be held at the storied Toronto music venue after former owner Michael Wekerle defaulted on nearly $56 million in loans tied to the property. In an interview with CTV News Toronto on Wednesday, the director of operations for the company that bought the 77-year-old club says it will be 'nothing too different' from its current iteration. 'The intent is to do it better. To manage operations with a little bit more rigor,' Neil Kerr said on behalf of Cyrus Madon, a longtime executive at Brookfield Asset Management, whose purchase of the venue's assets was approved by an Ontario court on Tuesday. 'Cyrus, he's pretty passionate about music, it's a passion that he's probably had for 50 years… He and his wife are strong supporters of Canadian musicians and charities. There are certainly going to be some charitable functions that are held at the venue as well. I think it's a very, very positive story.' Kerr did not disclose the purchase price of the property. The sale is expected to close in the coming weeks. Wekerele, who became a household name after his time as a star on CBC's 'Dragons' Den,' bought the El Mocambo in 2014 for $3.8 million and spent $35 million to improve the space. The businessman's passion project officially reopened in 2021 after a to-the-studs renovation and delays brought on by the COVID-19 pandemic. Court documents filed earlier this year showed Wekerle had defaulted on nearly $56 million in loans linked to the space. A spokesperson for the El Mocambo told The Canadian Press that Wekerle is not involved in the deal to sell the property. In a statement to The Canadian Press, Wekerle called the sale of the venue 'very important' to its future. 'I endorsed the purchaser and feel he is like-minded and will preserve the integrity of the El Mo,' he said. The small, two-storey concert venue fell into financial trouble in the 90s and early 2000s after playing host to legendary acts like The Rolling Stones and U2 in the 70s and 80s. After closing and re-opening under a number of owners, it finally shuttered. It's unclear when the venue will reopen under the new ownership. With files from The Canadian Press
Globe and Mail
27 minutes ago
- Globe and Mail
SIS, LLC Announces Successful Go-Live of CRB on Microsoft Dynamics 365 and SIS Construct 365 Project Cost Management
DULUTH, Ga., Aug. 6, 2025 /CNW/ -- SIS, LLC, a Microsoft Solutions Partner for Business Applications and leading implementer of ERP and CRM solutions for the construction industry, is thrilled to announce the successful go-live of CRB Group on Microsoft Dynamics 365 (D365) and SIS Construct 365 Project Cost Management (PCM) solution. This milestone marks a significant step in CRB's digital transformation journey, empowering their teams with cutting-edge tools to drive efficiency, profitability, and growth.
CBC
28 minutes ago
- CBC
Air Canada flight attendants vote to strike if agreement not reached, union says
More than 10,000 flight attendants could strike later this month. Members voted 99% percent in favour to strike if a deal is not reached. A 72 hour strike notice could be issued as soon as Aug. 16 according to the union representing flight attendants.
