New York City – PepsiCo, the multinational food and beverage company, encountered a decline in demand for its products in North America for the fifth consecutive quarter. As a result, the company reported mixed quarterly results with shares falling over 1% in premarket trading. Despite this setback, PepsiCo’s fourth-quarter net income showed improvement, with earnings per share of $1.96 adjusted, slightly beating the expected $1.94.
The company’s revenue for the quarter amounted to $27.78 billion, slightly lower than the anticipated $27.89 billion. Pepsi’s organic revenue saw a 2.1% increase, excluding acquisitions, divestitures, and foreign exchange. Despite a 1% rise in worldwide volume for convenient foods and beverages, North American markets experienced weaker demand.
Frito-Lay North America, a segment of PepsiCo, saw a 3% decrease in volume, attributed to consumers being more cautious with their spending on snacks due to rising food prices and interest rates. The North American beverage unit also reported a 3% decline in volume, although Gatorade managed to gain market share.
PepsiCo is optimistic about the future, projecting a low-single digit increase in organic revenue and a mid-single digit increase in core constant currency earnings per share for the year 2025. CEO Ramon Laguarta is focused on expanding the company’s international business while implementing strategies to boost performance in North America.
Despite challenges in the market, PepsiCo remains committed to improving its performance and meeting the expectations of its shareholders. Through strategic initiatives and a focus on innovation, the company aims to overcome the hurdles it faces in the competitive food and beverage industry and deliver sustainable growth in the years to come.