PepsiCo (PEP) earnings for the first quarter of 2022 have exceeded estimates

Pepsi products go on sale at the Target store on March 8, 2022 in Los Angeles, California.

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PepsiCo On Tuesday, it reported quarterly earnings and revenue that beat analysts’ expectations, as consumers paid more for Doritos, Quaker oatmeal and Gatorade.

Following its strong performance, the company raised its full-year forecast for organic revenue growth.

The company’s shares were flat in pre-market trading.

Here’s what the company reported compared to what Wall Street was expecting, based on an analyst survey by Refinitiv:

  • Earnings per share: $1.29, adjusted for $1.23 expected
  • Revenue: $16.2 billion vs. $15.56 billion forecast

PepsiCo reported first-quarter net income of $4.26 billion, or $3.06 per share, up from $1.71 billion, or $1.24 per share, a year earlier.

The food and beverage giant is reporting a $193 million after-tax impairment charge as it tries to stop or reposition some juice and dairy brands in Russia. The fee reduced its dividend by 14 cents per share. An additional $241 million after-tax impairment charge related to the Russia-Ukrainian conflict affected its earnings by 17 cents per share.

In March Pepsi Join a host of other western countries In suspending some of its business in Russia but stopped short of suspending sales quite like the competitor coca cola. Pepsi generates approximately 4% of its annual revenue in Russia, making the country one of the few markets in which it has a greater presence than Coca-Cola. Pepsi said it will continue to sell some essential products, such as infant formula, formula and baby food.

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except for file juice business saleRussian impairment charges and other items, the company earned $1.29 per share, beating $1.23 per share forecast by analysts polled by Refinitiv.

Net sales It rose 9.3% to $16.2 billion, beating expectations of $15.56 billion. Organic revenue rose 13.7% in the quarter, driven in large part by higher prices.

The company’s North American beverage business reported 3% volume growth. This quarter saw Pepsi launch into the alcohol business with Hard Mtn Dew, made in partnership with Boston Bear.

Frito-Lay North America saw volume increase just 1% in the quarter, although organic revenue for the segment was up 14%. The company said Doritos, Lays, Raffles and Cheetos saw double-digit revenue growth.

Quaker Foods was the only North American business unit to report a volume contraction during the quarter. This segment struggled to retain consumers it gained during the early days of the pandemic, when more people were eating breakfast at home. However, PepsiCo said it gained market share in the rice, pasta, snacks, ready-to-eat cereals and snacks categories.

For the full year, Pepsi now expects organic revenue growth of 8%, up from its previous forecast of 6%. The company reiterated its forecast for full-year core earnings per share growth of 8%.

Read the full press release here.

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