Singapore Green Jet Fuel Levy on Travellers Ignites Funding Debate
PepsiCo Surpasses Expectations in Q2, Boosting Stock and Outlook
![](https://fxonline.ai/wp-content/uploads/2023/07/pexels-tima-miroshnichenko-7567486-1-scaled-optimized.jpg)
PepsiCo Inc., the global beverages and snacks giant, outperformed market expectations in the second quarter, leading to a 1.8% increase in its stock during premarket trade on Thursday. The company reported a net income of $2.748 billion, equivalent to $1.99 per share, marking a significant rise from $1.429 billion, or $1.03 per share, in the same period last year. Adjusted earnings per share came in at $2.09, surpassing the estimated $1.96 according to FactSet. PepsiCo’s revenue also saw substantial growth, reaching $22.322 billion, exceeding the anticipated $21.729 billion.
The notable success was largely attributed to a remarkable 14% surge in sales of Frito-Lay snacks in North America. Frito-Lay North America experienced strong revenue growth, while Quaker Foods North America showed a modest increase of 1%, and PepsiCo beverages in North America rose by 10%. Some of PepsiCo’s iconic brands, including a range of iconic chips, recorded double-digit net revenue growth, while the company’s focus on healthier choices paid off with emerging brands like PopCorners, SunChips, Bare, and Off The Eaten Path.
Buoyed by its impressive performance, PepsiCo has raised its outlook for fiscal year 2023. The company now anticipates a 10% organic revenue growth, up from the previous estimate of 8%. Furthermore, it expects a 12% rise in core constant currency earnings per share, compared to the earlier projection of 9%. PepsiCo aims to reinforce its market position and prioritize investments in innovation, brand building, digitalization, and sustainability. The company plans to return approximately $7.7 billion to shareholders this year through dividends and share buybacks, emphasizing its commitment to long-term growth and delivering value to its investors.