PepsiCo reported second-quarter earnings that fell slightly short of Wall Street expectations, with adjusted earnings per share at $2.20 compared to the anticipated $2.21. Revenue reached $24.18 billion, exceeding the forecast of $23.95 billion. The company's net income rose significantly to $2.98 billion, or $2.18 per share, up from $1.26 billion a year earlier.
However, the performance in North America was disappointing, with flat volume in the food segment and a 4% decline in beverage volume, attributed to tightening consumer budgets amid rising inflation. CEO Ramon Laguarta noted that U.S. consumer spending has been affected by high gas prices, which reached a four-year high of $4.56 per gallon.
Despite these challenges, PepsiCo's international markets showed stronger demand, with global food volume increasing by 3% and beverage volume by 2%. The company has implemented price cuts on popular products and is revamping branding to stimulate sales.
CFO Steve Schmitt indicated that recovery in North American volumes may take time, leading to a more gradual improvement in performance for the remainder of the year. PepsiCo maintains its full-year forecast for organic revenue growth of 2% to 4% and core constant currency earnings per share growth of 4% to 6%