Vending

PepsiCo Q2 beverage sales clipped by COVID-19

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July 13, 2020

PepsiCo Inc. reported lower fiscal second-quarter earnings as the COVID-19 pandemic hurt beverage sales, but finished ahead of Wall Street estimates as consumers stocked up on snacks and other food.

The company reported non-GAAP earnings of $1.32 a share for the quarter ended June 13, beating Wall Street estimates of $1.25.

"Despite being faced with significant challenges and complexities as a result of the COVID-19 pandemic, our businesses performed relatively well during the quarter, with a notable level of resiliency in our global snacks and foods business," PepsiCo Chairman and CEO Ramon Laguarta said in the quarterly earnings release.

"Encouragingly, as restrictions and closures eased and population mobility improved as the quarter progressed, we also saw an improvement in our business performance and channel mix dynamics. However, the environment has remained volatile and much uncertainty remains about the duration and long-term implications of the pandemic."

Net income fell to $1.6 billion, or $1.18 a share, from $2 billion, or $1.44 a share in the year-ago quarter.

Sales fell 3.1% to $15.95 billion in the quarter from $16.4 billion in the year ago quarter.

The pandemic weighed heavily on North American beverage sales, where revenue fell to $4.97 billion from $5.32 billion in the year-ago quarter.

As a result, the company is not providing a financial outlook for fiscal year 2020 at this time, he said.

For an update on how the coronavirus pandemic is affecting convenience services, click here.