PepsiCo reported third-quarter earnings of $2.34 per share, surpassing the $2.29 expected by analysts, and revenue of $25.27 billion, above the anticipated $24.96 billion. However, the company lowered its full-year earnings forecast, now expecting a core earnings per share increase of only 2.5% to 3.5%, down from a previous range of 5% to 7%.
This adjustment reflects challenges in its North American market, where beverage volumes shrank by 2% and food volumes remained flat. Despite these domestic struggles, Pepsi's international business performed well, contributing 41% of net revenue, with volume growth in most regions.
CEO Ramon Laguarta acknowledged the need for improvement in North America, where the turnaround is progressing slower than anticipated. The company is focusing on innovation and marketing to revitalize its brands, particularly in the snacks and functional beverage segments.
Pepsi plans to implement cost reductions to support these initiatives, which may help improve its competitive position against rivals like Coca-Cola