Doritos Owner Tops Quarterly Forecasts On Demand For Healthy Snacks
PepsiCo Inc reported quarterly revenue and profit ahead of analysts' estimates on Thursday as the beverages and snacks maker benefited from demand for its healthy snacks, trademark sodas and Gatorade energy drinks.
Still, the soft drink and snack maker offered a more conservative earnings forecast for 2020 than Wall Street had expected and predicted slower organic revenue growth than last year.
Chief executive officer Ramon Laguarta has been largely focusing on new launches, which include healthy snacks and beverages, to drive sales as consumers demand more healthy on-the-go products.
The company said fourth-quarter revenue was driven by snacks including Lays and Doritos as well as double-digit net revenue growth in premium brands such as Bare and Off the Eaten Path.
Sales at its North American beverage unit rose 4%, while snacks sales, under its Frito-Lay North America segment, gained 3%.
Organic revenue, which excludes the effects of currency fluctuations and acquisitions, grew 4.3%, its fastest rate of growth since 2015, the soda maker said.
PepsiCo forecast core earnings of $5.88 per share. Analysts are expecting a profit of $5.95 per share, according to IBES data from Refinitiv.
Organic revenue is expected to rise 4% this year after a 4.5% gain in 2019.
For the fourth quarter ended 28 December, net revenue rose 5.7% to $20.64 billion, beating the estimate of $20.27 billion.
Excluding one-time items, the company earned $1.45 per share, beating market expectations by a cent.