Key highlights from the third-quarter 2023 results include:
Net Revenue Growth: PepsiCo achieved a 6.7% growth in net revenue for the third quarter and an 8.9% growth year-to-date. Revenue was $23.45 billion, beating analyst expectations of $23.39 billion.
Earnings Per Share (EPS): Earnings per share (EPS) for the third quarter reached $2.24, showing a 15% increase, while the year-to-date EPS stood at $5.62, reflecting a 7% decrease. This beat analysts expectations of $2.15.
Organic Revenue Growth: The company reported an impressive 8.8% growth in organic revenue for the third quarter and an 11.8% growth year-to-date.
Core EPS: Core constant currency EPS was $2.25 for the third quarter, with a 16% change, and $5.83 year-to-date, also with a 16% change.
PepsiCo's global performance showcased growth in multiple regions. Frito-Lay North America, Quaker Foods North America, and PepsiCo Beverages North America each reported strong results, with year-over-year percentage point impacts ranging from (6) to 5%. Meanwhile, Latin America, Europe, Africa, Middle East, and South Asia, and Asia Pacific, Australia, New Zealand, and China Region all contributed to PepsiCo's positive performance.
Laguarta emphasized the company's continued focus on cost management initiatives, as well as its investments in brands, manufacturing capacity, supply chain, technology, and personnel. These investments have positioned PepsiCo to execute its strategic framework and modernize the company, aiming to become a global leader in beverages and convenient foods.
The company provided guidance for the full year 2023, raising expectations for core constant currency EPS growth from 12% to 13%. PepsiCo maintains its outlook of a 10% organic revenue growth, a core annual effective tax rate of 20%, and total cash returns to shareholders of approximately $7.7 billion, distributed through dividends of $6.7 billion and share repurchases of $1.0 billion. Additionally, a 2-percentage-point foreign exchange translation headwind is expected to impact reported net revenue and core EPS growth based on current market consensus rates.
PepsiCo's optimistic outlook extends to 2024, where they anticipate achieving results toward the upper end of their long-term target ranges for both organic revenue and core constant currency EPS growth. These long-term targets include a 4-6% increase in organic revenue growth and a high-single-digit percentage increase in core constant currency EPS growth.
PepsiCo's third-quarter 2023 results and the outlook for the coming years demonstrate the company's strong performance and strategic vision for growth and leadership in the global food and beverage industry.