Vending

PepsiCo lifts Q3 2022 results, raises revenue expectations

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October 12, 2022

PepsiCo Inc. raised its 2022 organic revenue expectations after its Q3 2022 results surpassed expectations, according to an earnings release. Highlights include:

• Net revenue rose 8.8% on a GAAP basis from $20.19 billion in Q3 2021 to $21.97 billion in the quarter ending Sept. 3, 2022.
• Net income rose from $6.34 billion to $8.44 billion in the comparative quarters.
• Earnings per share rose 22% to $1.95.
• Frito-Lay North America revenue rose 20% on a GAAP basis from $4.65 billion to $5.56 billion.
• Quaker Foods North America revenue rose 15% from $618 million to $713 million.
• PepsiCo Beverages North America rose 4% from $6.4 billion to $6.63 billion.
• Latin America revenue rose 20% from $2.1 billion to $2.52 billion.
• Europe revenue rose 1% from $3.61 billion to $3.65 billion.
• Africa, Middle East and South Asia revenue rose 4% from $1.66 billion to $1.73 billion.
• Asia Pacific, Australia, New Zealand and China region revenue rose 3% from $1.14 billion to $1.171 billion.

Shares traded at $169.09 today against a 52-week range of $153.37-$181.07.

The $21.97 billion in quarterly revenue beat analyst expectations by $1.15 billion while the Q3 non-GAAP EPS of $1.97 beat expectations by 12 cents, according to Seeking Alpha.

"We are very pleased with our results for the third quarter as our global business momentum remains strong," Chairman and CEO Ramon Laguarta said in the press release. "Given our year-to-date performance, we now expect our full-year organic revenue to increase 12% (previously 10%) and core constant currency earnings per share to increase 10% (previously 8%)."

Consistent with its previous guidance for 2022, the company continues to expect total cash returns to shareholders of approximately $7.7 billion, comprised of dividends of $6.2 billion and share repurchases of $1.5 billion.