PepsiCo delivers 2.7% organic revenue growth in Q1 2024

PepsiCo, Inc has reported 2.3% growth in its net revenue for Q1 of 2024. PepsiCo has delivered 2.7% organic revenue growth, which compares to a very strong first quarter of 2023 in which it delivered 14.3% organic revenue growth. The performance of PepsiCo’s Quaker Foods North America business, which was heavily impacted by product recalls, detracted approximately one percentage point from its organic revenue growth.

Global organic volume trends, both in convenient foods and beverages, showed improvement versus the last quarter. Core gross and core operating margin expanded as compared to the first quarter of 2023, driven by end-to-end productivity initiatives.

Each of PepsiCo’s International divisions delivered at least high-single digit organic revenue growth, with most of the divisions delivering organic volume growth. The company’s International convenient foods business delivered 9% organic revenue growth, while its International beverages business delivered 10% organic revenue growth.

In Africa, Middle East and South Asia (AMESA), Convenient foods unit volume grew 4.5%, primarily reflecting high-single-digit growth in South Africa, double-digit growth in India and mid-single-digit growth in Pakistan, partially offset by a double-digit decline in the Middle East.

Beverage unit volume grew 2%, primarily reflecting mid-single-digit growth in the Middle East and high single-digit growth in India and Nigeria, partially offset by a double-digit decline in Pakistan.

Year-to-date, PepsiCo gained savoury snack share in China, India, Brazil, Australia, and Pakistan, and for beverages, it gained share in Brazil, Turkey, South Korea, Thailand, Vietnam, and Pakistan.

In a release issued, Ramon Laguarta, Chairman and CEO, PepsiCo, Inc, said, “During the first quarter, our businesses remained agile and performed well, with a strong performance from our International business. We delivered a sequential improvement in our volume trends, and year-over-year growth in our net revenue, operating profit margin and EPS – despite the impact of certain product recalls at Quaker Foods North America and a difficult net revenue growth comparison from the prior year.”

Laguarta continued, “As we look ahead, we will continue to focus our efforts on executing well in the marketplace and delivering great-tasting products that offer convenience and good value to the consumer. We will also continue to elevate and accelerate our productivity initiatives to support continued investments in our brands, capabilities and pep+ initiatives. As a result, we continue to expect to deliver at least 4 percent organic revenue growth and at least 8 percent core constant currency EPS growth in 2024. In addition, our previously announced 7 percent annualized dividend increase is expected to begin with our June 2024 payment and will represent our 52nd consecutive annual increase.”