REUTERS: PepsiCo beat analysts’ estimates for quarterly revenue and profit on Monday (Jul 13), helped by a surge in demand for snacks including Fritos and Cheetos during lockdowns triggered by the COVID-19 pandemic.
Consumers stocked up on snacks, from potato chips to dips, as many were forced to work from home and students attended classes online to curb the spread of the virus.
Sales of snacks under the Frito-Lay North America unit rose 7 per cent in the second quarter.
However, revenue at PepsiCo’s North America beverages unit fell 7 per cent as restaurants and vending machines remained closed, while sporting events were delayed.
Revenue in the company’s Latin America business tumbled 17 per cent as coronavirus cases in the region rose.
Chief Executive Officer Ramon Laguarta signaled an improvement in trends as the quarter progressed due to the easing of restrictions.
Overall, net revenue fell about 3 per cent to US$15.95 billion, but beat analysts’ estimates of US$15.38 billion, according to IBES data from Refinitiv.
Net income attributable to the company fell to US$1.65 billion, or US$1.18 per share, in the three months ended Jun 13, from US$2.04 billion, or US$1.44 per share, a year earlier.
Excluding one-time items, the company earned US$1.32 per share, beating Wall Street estimates of US$1.25.