Vending

PepsiCo lifts Q1 2023 revenue on price hikes, raises annual forecast

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April 26, 2023

PepsiCo Inc. lifted its revenue Q1 2023 over the prior year period, driven by price increases that offset rising costs, according to a Reuters report.

The company also raised its annual forecasts and announced plans to raise prices in some regions.

Average prices rose 16% in the first quarter while organic volume slipped 2%.

Highlights include:

• Net revenue rose 10% from $16.2 billion in Q1 2022 to $17.85 billion for the quarter ending March 25, 2023.
• Diluted EPS fell from $3.06 to $1.40 in the comparative quarters.
• Non-GAAP EPS was $1.50 for Q1 2023.
• Net income fell from $4.26 billion to $1.93 billion.
• Frito Lay North America revenue rose 15% from $4.84 billion to $5.58 billion.
• Quaker Foods North America revenue rose 9% from $713 million to $777 million.
• PepsiCo Beverages North America revenue rose 8% from $5.35 billion to $5.79 billion.
• Latin America revenue rose 21% from $1.47 billion to $1.78 billion.
• Europe revenue rose 5% from $1.79 billion to $1.88 billion.
• Africa, Middle East and South Asia revenue rose 2% from $1 billion to $1.02 billion.
• Asia Pacific, Australia and New Zealand and China revenue fell 1% from $1.02 billion to $1 billion.

Shares traded at $188.75 today against a 52-week range of $154.86-$190.18.

The $17.85 billion in quarterly revenue surpassed analyst estimates of $17.22 billion, according to Reuters, while the adjusted profit of $1.50 per share exceeded estimates of $1.39.

"We are very pleased with our performance and business momentum as our categories and geographies remained resilient during the first quarter," Ramon Laguarta, chairman and CEO at PepsiCo, said in the press release. "Given our strong start to the year, we now expect our full-year 2023 organic revenue to increase 8% (previously 6%) and core constant currency EPS to increase 9% (previously 8%)."