PepsiCo’s net sales fell by 3.1% during the second quarter.
Excluding items, the company earned $1.32 per share.
Pepsi reported falling organic sales for its North American beverage unit, but Frito-Lay and Quaker Oats saw organic revenue growth.
PepsiCo reported that its quarterly revenue fell as fewer consumers bought its drinks at restaurants or convenience stores as a consequence of the coronavirus pandemic.
But its food business fared better, with products like Cheetos and oatmeal seeing strong growth.
In the three months, PepsiCo posted net revenues of $15.95 billion, beating analyst forecasts in what has been described as ‘stronger-than-expected results’.
PepsiCo’s latest figures follow along with the same pattern as its first-quarter results, in which it had noted a decrease in immediate consumption and away-from-home channels due to Covid-19 which was negatively impacting its beverages business.
Meanwhile, consumer demand for its snack business has continued to rise. Earlier this month, Frito-Lay announced its decision to invest $200 million to expand its snack manufacturing operations in Perry, Georgia.
PepsiCo saw a net revenue rise of 23% in its Quaker Foods North America unit to $664 million and a 55% increase in operating profit.
Last month, PepsiCo’s Quaker Oats subsidiary announced that it will replace and retire its Aunt Jemima range of breakfast products, acknowledging the imagery behind the brand was “based on a racial stereotype”.
In its Europe and Latin America segments, net revenue declined by 9% and 17%, respectively.
PepsiCo Chairman and CEO, Ramon Laguarta said:
“I’m very pleased with the way our organization has protected our associates and served the needs of our customers, consumers and communities throughout these incredibly difficult times,”.
“Despite being faced with significant challenges and complexities as a result of the COVID-19 pandemic, our businesses performed relatively well during the quarter, with a notable level of resiliency in our global snacks and foods business.”
“Encouragingly, as restrictions and closures eased and population mobility improved as the quarter progressed, we also saw an improvement in our business performance and channel mix dynamics.”
“However, the environment has remained volatile and much uncertainty remains about the duration and long-term implications of the pandemic.”
“As a result, we are not providing a financial outlook for the fiscal year 2020 at this time. However, we continue to believe we have ample liquidity and flexibility to meet the needs of our business and return cash to shareholders.”
“We remain focused on winning in the marketplace with our strong portfolio of brands in attractive categories, agile supply chain and flexible go-to-market systems, while also building on our competitive advantages, to emerge an even stronger company in the future.”