PepsiCo records stronger sales in Q2 2021 as consumers eat out more

0
PepsiCo’s net revenue rises 5.3% as beverage business improves brandspurng
Photo by Ja San Miguel on Unsplash

Food and beverage giant, PepsiCo, home to popular brands like Pepsi, Mountain Dew has reported a 20.5% increase in net revenue in its second-quarter results and raised its full-year guidance for organic revenue growth. The return of restaurants and other activities away from the home was a big boon to PepsiCo, which reported a huge jump in revenue in its drinks and snacks businesses in the second quarter.

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.

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%.

Chairman and CEO Ramon Laguarta commented,

“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 percent and core constant currency earnings per share to increase 11 percent.

PepsiCo’s net revenue rises 5.3% as beverage business improves brandspurng
Photo by Ja San Miguel on Unsplash

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.

Moving forward, we remain focused on winning in the marketplace and building competitive advantages that will position us well as consumer habits and preferences evolve over time.”

In its Q1 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.

pepsico

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.