PepsiCo(US:PEP)2024-07-10 21:53Financial Performance - Organic revenue growth for Q2 2024 was 1.9%, with year-to-date growth at 2.3%[2] - Core EPS for Q2 2024 was $2.28, reflecting a 10% increase in constant currency compared to the previous year[2] - Net revenue growth for Q2 2024 was 0.8%, with a year-to-date growth of 1.5%[10] - Total net revenue for Q2 2024 was $22.501 billion, compared to $22.322 billion in Q2 2023[17] - The total operating profit increased by 8% year-over-year, with a net income attributable to PepsiCo rising by 10%[31] - Net income attributable to PepsiCo for the 12 weeks ended June 15, 2024, was $3,083 million, up from $2,748 million in the prior year, marking a year-over-year increase of 12.2%[43] - The company reported a gross profit of $12,582 million for the 12 weeks ended June 15, 2024, compared to $12,201 million for the same period last year, indicating a growth of 3.1%[43] - The reported diluted EPS for fiscal 2023 was $6.56, with a core diluted EPS of $7.62, indicating a significant increase[81] - Net income attributable to PepsiCo per common share was $2.23, compared to $1.99 in the previous year[99] Revenue by Segment - Frito-Lay North America reported a 3% decline in organic revenue, while PepsiCo Beverages North America saw a 17% increase[4] - Frito-Lay North America reported a year-over-year revenue change of (0.5)% with an organic volume change of (4) million[29] - Quaker Foods North America experienced a significant decline in revenue, down 18% year-over-year, with an organic volume change of (17) million[29] - PepsiCo Beverages North America achieved a 1% year-over-year revenue increase, with an organic volume change of (3.5) million[29] - Latin America reported a 7% year-over-year revenue increase, with an organic volume change of (5) million[29] - Europe saw a 2.5% year-over-year revenue increase, with an organic volume change of 2 million[29] - The Quaker Foods North America segment experienced a significant decline in revenue, down 34% year-over-year[56] - The Europe segment reported a revenue increase of 30% year-over-year, driven by strong performance in the region[56] Profitability and Expenses - Operating profit for Q2 2024 was $4.048 billion, up from $3.659 billion in Q2 2023[17] - Selling, general, and administrative expenses were $8,534 million for the 12 weeks ended June 15, 2024, slightly down from $8,542 million in the same period last year[43] - The effective tax rate for the reported net income attributable to PepsiCo was 21.5%[36] - The effective tax rate for the 12 weeks ended June 15, 2024, was 20.1%[60] - Operating profit increased to $4,048 million for the 12 weeks ended June 15, 2024, compared to $3,659 million for the same period last year, reflecting a growth of 10.7%[43] Future Outlook - The company expects core EPS for 2024 to be at least $8.15, a 7% increase from 2023's core EPS of $7.62[15] - PepsiCo expects approximately 4 percent organic revenue growth for full-year 2024, previously estimated at least 4 percent[94] - The company anticipates at least 8 percent core constant currency EPS growth for full-year 2024[98] - For 2024, the company expects total cash returns to shareholders of approximately $8.2 billion, including dividends of $7.2 billion and share repurchases of $1.0 billion[42] - The company anticipates continued growth in emerging markets, despite potential risks from geopolitical conditions and supply chain disruptions[82] Strategic Initiatives - The company continues to focus on strategic initiatives, including market expansion and product innovation, to drive future growth[11] - PepsiCo is investing in new technologies aimed at enhancing supply chain efficiency, with an expected reduction in operational costs by 5%[112] - The company plans to expand its market presence in Asia, targeting a 20% increase in market share over the next two years[112] - Recent acquisitions are expected to contribute an additional $1 billion in revenue, enhancing the overall portfolio[112] - The introduction of healthier snack options is anticipated to capture a growing segment of health-conscious consumers, with a target growth rate of 10% in this category[112] - PepsiCo aims to achieve a 25% reduction in greenhouse gas emissions by 2025 as part of its sustainability initiatives[112] Market Performance - The company highlighted a significant increase in user data, with a 15% rise in active customers compared to the previous year[112] - Future outlook includes a projected revenue growth of 8% for the upcoming fiscal year, driven by new product launches and market expansion strategies[112]