PepsiCo saw its sales and profit suffer from consumers buying fewer crisps and soft drinks – or who went for less expensive brands. Coca-Cola’s rival is therefore revising its expectations downwards.
Cheaper and fewer crisps
PepsiCo’s third-quarter sales remained stable at 23.3 billion dollars (21 billion euros), but its net profit fell by 5 % to 2.9 billion dollars (2.5 billion euros). Adjusted for non-recurring costs, earnings per share were slightly higher than forecast, at 2.31 dollars per share.
The manufacturer of Pepsi, Doritos and Lays reports that snacking habits are changing, particularly among Gen Z consumers. In the United States in particular, consumers are continuing to struggle with high prices, reducing their snacking habits and/or turning to cheaper products. Only in Europe did PepsiCo see any volume growth in the last quarter. However, sales growth varied by region, with good performances in South-East Asia and Brazil – and slowdowns in China and Mexico.
For the year as a whole, PepsiCo is revising its sales forecasts downwards: instead of organic sales growth of at least 4 %, the brand manufacturer is now only expecting growth of a few per cent. The company is promising to invest in core products such as Lays and in offers to stimulate volume growth.
