PepsiCo earnings beat estimates, but demand for drinks and snacks drops in North America – CNBC

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The metric strips out pricing and foreign exchange.But demand was weaker in the company’s home market, North America. Pepsi has previously said that shoppers in the U.S. have grown more cautious, snacking less and making fewer purchases at convenience stores.Still, executives think Pepsi’s domestic business will pick up again.”We’re very confident that our North American business will accelerate this year. We’re confident in our plans … and we see opportunities, especially away from home,” Laguarta told analysts on the company’s conference call.Frito-Lay North America’s volume fell 3% in the quarter. Consumers have been watching their grocery budgets, thanks to several years of higher food prices and interest rates.”In 2024, the salty and savory snack categories underperformed broader packaged food, following multiple years in which these categories had outperformed packaged food,” CEO Ramon Laguarta and CFO Jamie Caulfield said in prepared remarks.The company’s North American beverage unit reported a 3% decline in quarterly volume. But there were some bright spots for the division, as Gatorade gained market share and Mountain Dew Baja Blast surpassed $1 billion in annual sales.Pepsi is also planning to push more into protein drinks, executives said on the company’s conference call. The segment is growing quickly, fueled in part by the adoption of GLP-1 drugs.Quaker Foods North America, still reeling from a recall from the prior December, saw its volume fall 6%. The company expects that Quaker’s performance will improve in 2025 as it laps the fallout from the recall, executives said in prepared remarks.For 2025, Pepsi is projecting a low-single-digit increase in its organic revenue and a mid-single-digit rise in its core constant currency earnings per share.”Looking ahead to 2025, we will continue to build upon the successful expansion of our international business, while also taking actions to improve performance in North America,” Laguarta said in a statement.Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2025 CNBC LLC. All Rights Reserved. A Division of NBCUniversal
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Source: https://www.cnbc.com/2025/02/04/pepsico-pep-q4-2024-earnings.html