PepsiCo (PEP) Q2 2021 profits crush estimates – .

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PepsiCo (PEP) Q2 2021 profits crush estimates – .


PepsiCo said on Tuesday that its quarterly revenues were up more than 20% from a year earlier, as restaurant demand for its drinks returned, fueling higher profits.
The company also raised its outlook for full-year adjusted earnings per share.

The company’s shares rose as much as 2% in pre-market trading.

Here’s what the company reported for the second fiscal quarter compared to what Wall Street expected, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 1.72 adjusted vs. $ 1.53 expected
  • Turnover: $ 19.22 billion against $ 17.96 billion expected

Pepsi reported net income of $ 2.36 billion, or $ 1.70 per share, from $ 1.65 billion, or $ 1.18 per share, a year earlier.

Excluding items, the company gained $ 1.72 per share, exceeding the $ 1.53 per share expected by analysts polled by Refinitiv.

Net sales jumped 20.5% year-on-year to $ 19.22 billion, beating expectations of $ 17.96 billion. Organic sales, excluding currency effects, acquisitions and disposals, increased by 12.8%.

The company’s beverage business in North America reported organic revenue growth of 21%, the highest of any Pepsi division in the quarter. Its beverage volume climbed 15% and restaurant revenues, which include sales to restaurants, stadiums and college campuses, doubled in the quarter. A year earlier, the division’s organic sales had fallen by 7%.

Frito-Lay North America, which includes brands like Doritos and Cheetos, reported organic revenue growth of 6%. Convenience stores and restaurant channels helped drive sales as consumers became more mobile. The segment recorded strong sales throughout the pandemic. A year earlier, it posted organic growth of 6%.

The Quaker Foods North America business was the only division to report declining organic sales. Its volume fell by 21%, resulting in a drop in organic sales of 14%. Around the same time a year ago, the segment saw its organic sales increase 23% as consumers ate more breakfast at home, fueling demand for its maple syrup and oatmeal. Pepsi said the division’s organic revenue was up 9% on a two-year basis. Before the pandemic, it was the weakest part of Pepsi’s business.

Following such a strong quarter, the company said it now expects 11% growth in earnings per share in constant currencies, up from its earlier forecast of single-digit growth. . The forecast assumes a base earnings per share of $ 6.20 for 2021. Analysts expected full-year earnings growth of 7.2%.

Pepsi also lowered its forecast for organic revenue growth in 2021 from average to single digits at 6%.

The company also said it was extending the length and scope of its five-year productivity program. By 2026, he now plans to achieve at least $ 1 billion in annual savings.

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