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.