Pepsi Reports Strong Q3 Earnings
Oct 5, 2021 By MarketDepth
PepsiCo (NASDAQ: PEP) reported stronger than anticipated third quarter earnings on Tuesday and subsequently raised its full-year revenue guidance. Pepsi shares were up less than 1% during premarket trading.
Supply and Labor Constraints
According to executives, continuous supply chain disruptions, labor shortages, as well as commodities and transportation, all heavily impacted Pepsi’s third quarter results.
The multinational food, snack and beverage company reported earnings of USD1.79 a share, in comparison to the expected USD1.73 per share. Revenue amounted to USD20.19 Billion, higher than analysts anticipated USD19.39 Billion.
“We are pleased with our results for the third quarter as we delivered very strong net revenue growth while carefully navigating a dynamic and volatile supply chain and cost environment. Given our year-to-date performance, we now expect our full-year organic revenue to increase approximately 8% and core constant currency earnings per share to increase at least 11%.”CEO Ramon Laguarta
The company’s North American division experienced an organic revenue growth of 7% throughout the quarter. Meanwhile, its organic sales have increased 10% on a two-year basis. Furthermore, Pepsi reported double-digit net revenue growth within its food service business, including restaurant, stadium and college campus sales.
“Our strong year-to-date results demonstrate that the investments we have made towards becoming a Faster, Stronger, and Better company are working. To further complement and enhance our strategic framework, we recently introduced PepsiCo Positive (pep+), a fundamental end-to-end transformation of what we do and how we do it to create growth and shared value with sustainability and human capital at the center. We are extremely pleased with the progress we are making on our strategic agenda, and remain committed to the investments in our people, supply chain, plants, go-to-market systems, and digitization initiatives to build competitive advantages and win in the marketplace.”CEO Ramon Laguarta