A surge in demand for its snack including the likes of Tostitos, Cheetos and Doritos by consumers prior to and during the novel coronavirus pandemic related lockdowns and restrictions helped PepsiCo Inc to beat estimates of analysts for quarterly revenue and profit on Monday.
The general downward trend at Wall Street has sent the company’s shares down by 1.6 per cent to data this year. After the estimate bearing performance for the quarter, the shares of the company surged by 2 per cent before the bell and investors apparently did not pay much heed to the drop in revenue of Pepsi form the sale of its sodas because of the widespread closure of restaurants in most countries across the world because of the novel coronavirus pandemic. .
“Consumer eating habits continued to evolve, with consumers spending more time at home, which benefits the at-home breakfast, snacking and dinner occasions,” Pepsi’s Chief Executive Officer Ramon Laguarta said in pre-recorded remarks.
“We gained market share in salty, savory and macro-snacks in the quarter.”
A 93.5 per cent jump in the online sales of potato chips and a 101.2 per cent spike in the online sale of tortilla chips for the week ended June 20 was recorded, according to data from the market data from Nielsen.
In the second quarter ended June 13, there was a 7 per cent increasing in the sales of snacks of Pepsi under the Frito-Lay North America unit and a 23 per cent jump in the sale of the company’s Quaker Oats.
There was however a 7 per cent drop in the revenues generated from PepsiCo’s North America beverages unit, its biggest, because of the closure of restaurants and other points of sale and the delay of the planned sporting events across the region.
An improvement in sales of its products at the convenience stores and gas stations was noted by Laguarta. But the company believes that it will take some time for a revival of demand in the food service channels, which include restaurants, because of the slow and non-uniform reopening across the world.
The company also expects to see continued resilience in its snacks and food businesses while it expects its beverages business to do better during the second half of the year.
On the overall, Pepsi noted a 3 per cent drop in its net revenues for the quarter at $15.95 billion. That number however exceeded expectations of analysts of revenues of $15.38 billion, according to IBES data from Refinitiv.
Net income attributable to the company fell about 19% to $1.65 billion. Excluding items, the company earned $1.32 per share, beating Wall Street estimates of $1.25.
(Source:www.nasdaq.com)
The general downward trend at Wall Street has sent the company’s shares down by 1.6 per cent to data this year. After the estimate bearing performance for the quarter, the shares of the company surged by 2 per cent before the bell and investors apparently did not pay much heed to the drop in revenue of Pepsi form the sale of its sodas because of the widespread closure of restaurants in most countries across the world because of the novel coronavirus pandemic. .
“Consumer eating habits continued to evolve, with consumers spending more time at home, which benefits the at-home breakfast, snacking and dinner occasions,” Pepsi’s Chief Executive Officer Ramon Laguarta said in pre-recorded remarks.
“We gained market share in salty, savory and macro-snacks in the quarter.”
A 93.5 per cent jump in the online sales of potato chips and a 101.2 per cent spike in the online sale of tortilla chips for the week ended June 20 was recorded, according to data from the market data from Nielsen.
In the second quarter ended June 13, there was a 7 per cent increasing in the sales of snacks of Pepsi under the Frito-Lay North America unit and a 23 per cent jump in the sale of the company’s Quaker Oats.
There was however a 7 per cent drop in the revenues generated from PepsiCo’s North America beverages unit, its biggest, because of the closure of restaurants and other points of sale and the delay of the planned sporting events across the region.
An improvement in sales of its products at the convenience stores and gas stations was noted by Laguarta. But the company believes that it will take some time for a revival of demand in the food service channels, which include restaurants, because of the slow and non-uniform reopening across the world.
The company also expects to see continued resilience in its snacks and food businesses while it expects its beverages business to do better during the second half of the year.
On the overall, Pepsi noted a 3 per cent drop in its net revenues for the quarter at $15.95 billion. That number however exceeded expectations of analysts of revenues of $15.38 billion, according to IBES data from Refinitiv.
Net income attributable to the company fell about 19% to $1.65 billion. Excluding items, the company earned $1.32 per share, beating Wall Street estimates of $1.25.
(Source:www.nasdaq.com)
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