PepsiCo (PEP) Q4 2023 earnings

Bottles of Pepsi are seen at a grocery store in Las Vegas, the United States, November 17, 2023.

Jakub Porzycki | Nuphoto | Getty Images

PepsiCo The company reported mixed quarterly results on Friday as North American demand for its food and beverage products weakened.

Shares of the company fell more than 2% in premarket trading.

Here's what the company reported compared to what Wall Street expected, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.78 adjusted versus $1.72 expected
  • Revenue: $27.85 billion versus $28.4 billion expected

Pepsi reported fourth-quarter net income of $1.3 billion, or 94 cents per share, compared with $518 million, or 37 cents per share, a year earlier.

Excluding items, the food and beverage giant earned $1.78 per share.

Net sales fell 0.5% to $27.85 billion.

The company's organic revenue, which excludes acquisitions and divestitures, rose 4.5% in the quarter, helped by higher prices. But Pepsi's volume, which doesn't take into account price and currency changes, fell again this quarter.

Pepsi's North American Quaker Foods division reported an 8% decline in volume. A voluntary recall of its granola and cereal bars hurt its sales during the quarter.

Frito-Lay North America, which includes brands like Cheetos and Doritos, saw a 2% decline in volume.

Pepsi's North American beverage unit saw volume fall 6% during the quarter.

For 2024, Pepsi now expects organic revenue growth of at least 4% and constant currency earnings per share growth of at least 8%. The company previously forecast organic revenue growth in the high range of 4% to 6% and constant currency earnings per share growth in the high single digits.

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