Current print subscribers can create a free account by clicking here
Otherwise, follow the link below to join.
To Our Valued Readers –
Visitors to our website will be limited to five stories per month unless they opt to subscribe. The five stories do not include our exclusive content written by our journalists.
For $6.99, less than 20 cents a day, digital subscribers will receive unlimited access to YourValley.net, including exclusive content from our newsroom and access to our Daily Independent e-edition.
Our commitment to balanced, fair reporting and local coverage provides insight and perspective not found anywhere else.
Your financial commitment will help to preserve the kind of honest journalism produced by our reporters and editors. We trust you agree that independent journalism is an essential component of our democracy. Please click here to subscribe.
Need to set up your free e-Newspaper all-access account? click here.
Non-subscribers
Click here to see your options for becoming a subscriber.
Register to comment
Click here create a free account for posting comments.
Note that free accounts do not include access to premium content on this site.
I am anchor
PepsiCo lowers revenue forecast as sales growth weakens
FILE - Gatorade containers are shown on the sideline prior to an NFL preseason football game between the Jacksonville Jaguars and Atlanta Falcons, Aug. 23, 2024, in Atlanta. (AP Photo/Stew Milne, File)
Posted
By DEE-ANN DURBIN
PepsiCo lowered its organic revenue forecast for the year after U.S. consumers continued to pull back on buying its snacks and drinks.
The company, based in Purchase, New York, said Tuesday it now expects its organic revenue -- which is adjusted for foreign currency exchanges and the impact of product acquisitions or divestments – to increase in the low single-digit range for the year. It had expected an increase of 4%.
PepsiCo said its performance in North America was “subdued,” hurt by a big recall of its Quaker Oats granola bars and cereals as well as weak demand for its Frito-Lay snacks and drinks. Frito-Lay North America's sales volumes slipped 1.5%, while North American beverage volumes fell 3%.
Consumers began to push back on higher prices this summer after years of increases, and PepsiCo vowed to lower the cost of some products like potato chips and tortilla chips. Frito-Lay prices edged up by just 0.5% in the third quarter, the company said.
Globally, PepsiCo said it raised prices 3%. Sales volumes were down in every market except Europe.
Third quarter revenue was flat at $23.3 billion. Wall Street had expected revenue of $23.8 billion, according to analysts polled by FactSet. PepsiCo's quarterly revenue growth — which had frequently grown by double-digits in recent years — has slowed sharply in the last few quarters.
Net income fell 5% to $2.9 billion, or $2.13 per share. Adjusted for one-time items, PepsiCo earned $2.31 per share, which was higher than the $2.29 per share analysts were expecting.