PepsiCo boosts Q2 2023 results, lifts full year expectations

PepsiCo Inc. lifted its sales and earnings for Q2 2023 over the prior year period and upgraded its full year results, according to a press release. Highlights include:

• Revenue rose 10.4% from $20.22 billion in Q2 2022 to $22.32 billion in the quarter ending June 17, 2023.
• Net income rose from $1.43 billion to $2.75 billion in the comparative quarters.
• Diluted income per common share rose 93% from $1.03 to $1.99.
• Non-GAAP EPS was $2.09 for the quarter.
• Frito Lay North America revenue rose 14% from $5.18 billion to $5.9 billion.
• Quaker Foods North America revenue rose 1% from $675 million to $684 million.
• PepsiCo Beverages North America revenue rose 10% from $6.12 billion to $6.75 billion.
• Latin America revenue rose 18% from $2.41 billion to $2.86 billion.
• Europe revenue rose 13% from $3.02 billion to $3.43 billion.
• Africa, Middle East and South Asia revenue fell 8% from $1.69 billion to $1.57 billion.
• Asia Pacific, Australia, New Zealand and China region rose 1% from $1.11 billion to $1.3 billion.

Shares traded today at $185.99 against a 52-week range of $160.98 to $196.88.

The $22.32 in quarterly revenue beat analyst expectations by $590 million while the non-GAAP EPS of $2.09 beat expectations by 13 cents, according to Seeking Alpha.

"We are very pleased with our performance for the second quarter as our business momentum remains strong. As a result, we now expect our full-year organic revenue to increase 10% (previously 8%) and our core constant currency EPS to increase 12% (previously 9%)," chairman and CEO Ramon Laguarta said in the press release.

For fiscal year 2023, the company now expects to deliver 10% organic revenue growth (previously 8%), and 12% core constant currency EPS growth (previously 9%).