PepsiCo Inc (NASDAQ:PEP, ETR:PEP) reported second-quarter revenue and earnings that beat Wall Street estimates on Thursday, as international markets helped offset weaker performance in its North American food business.
The company posted revenue of $22.73 billion, topping analysts’ average estimate of $22.29 billion, a 1% increase from a year earlier.
Core earnings per share came in at $2.12, ahead of the expected $2.03, though down 7% year-over-year.
Organic revenue rose 2.1%, driven by growth in international beverages and snacks, even as Frito-Lay North America and Quaker Foods saw a 2% decline.
“We’re encouraged by the acceleration in net revenue growth versus the first quarter,” said CEO Ramon Laguarta. “Our international business continues to outperform, and North America improved in key subcategories and channels.”
The company said it expects full-year organic revenue to grow by a low-single-digit percentage and forecast flat core constant-currency EPS around $8.16, in line with prior guidance. PepsiCo also narrowed its expected foreign exchange headwind for the year to 1.5 percentage points from 3 percentage points.
PepsiCo’s international beverages segment rose 5%, with EMEA organic revenue up 7% and Latin American foods growing 6%. The Asia Pacific food segment was flat.
“We are investing in innovation and cost optimization to drive profitable growth,” Laguarta added. “We remain confident in delivering our FY25 targets despite FX volatility.”
PepsiCo shares rose 6.2% at the open on Thursday following the results.