PepsiCo lowers revenue forecast, faces decline in many markets

(NADS) - PepsiCo has revised its 2024 organic revenue forecast to a single-digit increase, down from its previous target of 4%. The decision comes after two consecutive quarters of missed sales expectations, impacted by the Quaker Foods North America recall, weak demand in the U.S., and business disruptions in some international markets.

PepsiCo reported net income of $2.93 billion in the third quarter, down from $3.09 billion a year earlier. Net sales fell 0.6% to $23.32 billion, while organic sales rose just 1.3%. Notably, both food and beverage volumes fell 2%, reflecting shifting spending habits across income segments.

Pepsi's North American beverage business volume fell 3%. Photo: Gabby Jones / Bloomberg via Getty

The recall at Quaker Foods North America was devastating, with volumes down 13%. It was the result of a long string of recalls that began last December. By June, Pepsi had closed a related plant, reducing the negative impact, according to CEO Ramon Laguarta and CFO Jamie Caulfield.

The product recall at Quaker Foods North America has caused heavy damage. Photo: Collected

Frito-Lay North America also saw volume decline 1.5%, despite efforts to improve its mix with products like Cheetos and SunChips. Pepsi's North American beverage volume fell 3%, although some brands like Gatorade still saw revenue growth.

In international markets, particularly Latin America and Africa, the Middle East and South Asia, PepsiCo has seen volume declines in both its food and beverage segments. With demand for consumption declining, particularly for salty and sweet snacks, PepsiCo is faced with the challenge of adapting its strategy to meet changing tastes. Despite efforts to deliver better value to consumers, these categories have yet to recover their previous levels of outstanding growth.

Behind this decline is a clear sign of changing consumer behavior across all income segments, requiring businesses like Pepsi to adapt quickly if they do not want to be left behind in the race to win market loyalty.

Source: https://nhiepanhdoisong.vn/pepsico-ha-du-bao-doanh-thu-doi-mat-su-sut-giam-o-nhieu-thi-truong-15338.html