PepsiCo raises guidance as organic revenue growth accelerates in Q2

PepsiCo has reported a 20.5% increase in net revenue in its second-quarter results and raised its full-year guidance for organic revenue growth.

For the quarter ending 12 June 2021, the company has posted net revenues of $19.22 billion, compared with the $15.95 billion recorded for the same period last year. Meanwhile, PepsiCo’s operating profit for Q2 came in at $3.13 billion.

In its first-quarter results, PepsiCo reported organic revenue growth of 2.4% and said that it expected this to accelerate in the second quarter.

The company has now reported organic revenue growth of 12.8% for Q2 and announced that it is raising its financial guidance for the full year from mid-single-digit to 6% organic revenue growth.

The company’s PepsiCo Beverages North America division put in a strong performance in Q2 with a 24% increase in net revenue, while volume increased by 15%. PepsiCo says that it gained market share in categories including carbonated soft drinks, ready-to-drink tea and juice.

The easing of pandemic-related restrictions and closures compared with the year-ago quarter helped boost net revenue for PepsiCo’s foodservice business and drive up beverage sales.

The company’s Frito-Lay North America unit saw its net revenue increase 7% and operating profit by 8%. Meanwhile, net revenue for the Quaker Foods North America unit fell 13%, with operating profit seeing a steep decline of 34%.

Africa, Middle East and South Asia’s net revenue went up 63% with PepsiCo’s Asia Pacific, Australia and New Zealand and China Region segment recording the second highest increase of 41%. In Latin America, net revenue rose by 26% and in Europe by 21%.

“We are pleased with our second-quarter results as we delivered very strong double-digit net revenue and earnings per share growth. Given the strength of our results, we now expect our full-year organic revenue to increase 6%,” said PepsiCo chairman and CEO, Ramon Laguarta.

He continued: “Our results give us confidence that the investments behind our Faster, Stronger and Better framework are working – as we invest in our brands, supply chain and go-to market systems, manufacturing capacity, capabilities and culture, and our society by integrating purpose into everything we do.”