Here's what the company reported compared to what Wall Street expected, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.78 adjusted and $1.72 expected
- Revenue: $27.85 billion versus $28.4 billion expected
Pepsi reported fourth-quarter net income of $1.3 billion, or 94 cents per share, compared with $518 million, or 37 cents per share, a year earlier.
Excluding items, the food and beverage company earned $1.78 per share.
Net sales It was down 0.5% to $27.85 billion. The company's quarterly revenue for the first quarter of 2020 has declined compared to the previous year. Currency exchange rates dragged down net sales by 1.5%.
Pepsi's organic revenue, excluding acquisitions and divestitures, rose 4.5% in the quarter, helped by higher prices. But those same inflated prices have hurt demand for the company's food and beverages. PepsiCo's volume, which strips out price and currency adjustments, fell again in the quarter.
PepsiCo executives said higher borrowing costs and lower personal savings have squeezed consumer budgets, particularly in North America, in prepared comments released ahead of the company's conference call. They also reported that consumers are increasingly choosing smaller pack sizes for convenience and lower price points.
PepsiCo's North American Quaker Foods division was down 8% in volume. Voluntary recalls of its granola bars and cereals hurt its sales in the quarter, with weaker growth in the overall category.
Frito-Lay North America, which includes brands like Cheetos and Doritos, posted a 2% drop in volume.
Pepsi's North American beverage unit saw its volume fall 6% in the quarter.
In 2024, Pepsi now expects organic revenue growth of at least 4% and core constant currency earnings per share growth of at least 8%. The company previously forecast organic revenue growth of 4% to 6% and forecast core constant currency earnings per share growth in the high single digits.
“Consumers will continue to be careful with their budgets and willing to make purchases,” Pepsi executives said in prepared remarks.
Pepsi is forecasting a weak first half of the year as the spin-off of its North American quark oats business and international conflicts hurt sales in some regions. Executives expect full-year international organic revenue growth to outpace North America.