PepsiCo (PEP) Q1 earnings report 2023

PepsiCo on Tuesday boosted its outlook for the year as it posted earnings and revenue that beat expectations.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $1.50 adjusted vs. $1.39 expected
• Revenue: $17.85 billion vs. $17.22 billion expected

For the period ended March 25, PepsiCo reported net income of $1.93 billion, or $1.40 a share, compared with $4.26 billion, or $3.06 a share, in the year-earlier period. Excluding one-time items, the company posted $1.50 in earnings per share.

Net sales rose 10.2% to $17.85 billion. Organic revenue, which doesn’t include the impact of acquisitions and divestitures, rose 14.3%.

Volumes rose 1% in PepsiCo’s beverage business, while they declined 3% in its food segment. Overall, volumes were down 2% across all categories, while prices were up 16% overall.

Frito-Lay North America reported an organic revenue increase of 16%, fueled by market share gains and double-digit net revenue growth across key brands like Lay’s, Doritos, and Cheetos, as well as brands such as Sun Chips and PopCorners.

PepsiCo Beverages North America’s organic revenue increased 12%, with with Pepsi delivering double-digit net revenue growth and brands like Gatorade and Aquafina delivering high single-digit net revenue growth.

The company said it expects its full-year 2023 organic revenue to increase 8%, up from 6%, and core constant currency EPS to increase 9% up from 8%.

Earlier this month, the company also set a goal to design 100% of its packaging to be recyclable, compostable, biodegradable or reusable by 2025.

“These things are hard, they’re not easy, but what I would tell you is we’re fully committed to it,” PepsiCo Foods North America CEO Steven Williams said at the time.