Dive Brief:
- As a sign of confidence, PepsiCo upped its Q2 earnings forecast for the year from 7% to 8% on constant currency. The company raised prices amid a stronger dollar, which saw success in its Americas beverage business. In Q3, this sector will carry a new name, North America Beverages, as the Latin America beverage and food businesses are merging.
- PepsiCo revealed a few management changes ahead of its earnings release, with global operations chief Enderson Guimaraes exiting the company and CFO Hugh Johnston adding vice chairman to his position plus more responsibility in IT. Guimaraes' job will be divided between two younger execs.
- The company's earnings were about the same as a year ago at $1.98 billion, or $1.33 per share, with last year being $1.98 billion or $1.29 per share. Analysts expected $1.24 per share this quarter. Though net revenue dipped 5.7%, hitting $15.92 billion, it beat expecations of $15.80 billion.
Dive Insight:
"Through scientific R&D and strategic insights, we are developing sustainable innovation to offer consumers the range of food and beverage choices they're looking for and creating a powerful platform for growth," said CEO Indra Nooyi in a news release. "As a result, we continue to drive growth for our retail partners. Notably, in the second quarter, PepsiCo was once again the largest contributor to retail sales growth in the U.S., our largest market, among all food and beverage manufacturers, with over $400 million of retail sales growth in all measured channels."
PepsiCo is facing tough times as consumers look for healthier options besides soda, though its raising of prices gave it a boost this time around. Soda rival Coca-Cola, which still dominates with its signature soda in the U.S., will release earnings July 22.
In premarket trading, shares rose 3% to $98.49.