By
Chimamanda U. Martha
October 24th, 2023
Beverage giant PepsiCo raised its full-year outlook following its commendable Q1 2023 performance, beating analysts’ expectations.
PepsiCo (NASDAQ: PEP) has raised its 2023 yearly outlook following its better-than-expected Q1 performance. On Tuesday, the multinational food, snack, and beverage corporation posted earnings and revenue that surpassed expectations. For the first quarter of the year, PepsiCo reported $17.85 billion in revenue compared to the $17.22 billion analysts expected. In addition, the New York-based corporation reported earnings per share (EPS) of $1.50 adjusted versus Wall Street’s projected $1.39.
In Q1 2023, PepsiCo realized $1.93 billion in net income, or $1.40 a share. However, the net income paled in comparison year-over-year (YoY) to the $4.26 billion, or $3.06 a share, realized in 2022.
PepsiCo’s beverage business volume increased by 1% in the last quarter, while the food segment declined by 3%. Altogether, all the company’s categories sustained a 2% drawdown in Q1, while prices surged 16% overall.
PepsiCo CEO Content with Q1 2023 Results Believes Company Is on the Right Track
PepsiCo Chairman and Chief Executive Officer Ramon Laguarta expressed satisfaction with the company’s latest quarterly performance. As Laguarta put it:
“We are very pleased with our performance and business momentum as our categories and geographies remained resilient during the first quarter.”
The CEO also touched on PepsiCo’s increased full-year 2023 guidance, saying:
“Given our strong start to the year, we now expect our full-year 2023 organic revenue to increase 8% (previously 6%) and core constant currency EPS to increase 9% (previously 8%).”
Laguarta reiterated his belief that PepsiCo is on the track for sustained success in a dynamic business environment. “Our results demonstrate that the investments we have made to become an even Faster, even Stronger, and even Better organization by Winning with pep+ are laying the foundation for durable and sustainable growth,” said he.
The PepsiCo CEO concluded that the company remains committed to its “strategic agenda” and looks to keep investing in core resources. These include people, brands, supply chains, go-to-market systems, and digitization initiatives.
Earlier in the month, PepsiCo embarked on an agenda to sport ‘greener’ and more eco-friendly product packaging by 2025. According to the company behind the popular Pepsi soft drink, 100% of its product packaging will be recyclable in two years. In addition, PepsiCo said packaging for its beverage and snack brands will be compostable, biodegradable, or reusable by 2025. Claiming this goal is “not easy,” PepsiCo Foods North America CEO Steven Williams said the company remains “fully committed to it.”
Coca-Cola Q1 Performance
PepsiCo’s latest quarterly report comes on the heels of beverage rival Coca-Cola’s (NYSE: KO) Q1 2023 outing. Less than 24 hours ago, the company behind the Coke brand also beat estimates and doubled down on its yearly outlook.
For the first quarter of the year, Coca-Cola pulled in revenue of $10.96 billion adjusted compared to the $10.8 billion analysts expected. In addition, the beverage giant reported a $3.11 billion, or 72 cents per share in quarterly net income attributable to shareholders.