Dive Brief:
- PepsiCo saw profit beat estimates in Q1 with a boost from Frito-Lay in North America plus beverages in the Americas.
- However, net revenue ticked down to $12.2 billion in Q1, the first decline in four quarters. The company cites a strong dollar for the decline, and notes revenue rose 4.4% organically.
- The company has been ahead of Wall Street profit estimates for 13 quarters in a row, this one included, reports Reuters.
Dive Insight:
Reuters notes competitor Coca-Cola posted a revenue uptick for the first time in nine quarters in its latest earnings report. PepsiCo's signature beverage recently overtook Diet Coke for the No. 2 beverage in the U.S.
Considering the general distaste toward soft drinks as of late, it's pretty impressive PepsiCo Americas Beverages saw even slight revenue growth this quarter.
The company expects the dollar to impact its per-share earnings this year stronger than previously, now expecting an 11-point decline instead of 7 points predicted in February.
"We have and will continue to take actions to manage through the current volatile macroeconomic environment by taking responsible pricing actions, tightly controlling costs, and optimizing our global sourcing to minimize and mitigate the impacts of the current foreign exchange challenges," CEO Indra Nooyi said in a news release.