Soft drinks and snacks maker PepsiCo reports Q3 2021 results. Compared to the third quarter of last year:
- revenue increased by 11,6%, up to $20.2 billion;
- organic sales increased by 9%;
- operating profit increased by 4,9%, up to 3.2 billion;
- net profit fell by 2,9%, up to 2.2 billion.
PepsiCo's results were better than analysts' expectations. The company also raised its 2021 sales target.. For the day, PepsiCo shares rose by 0,6%, to 151,1 $.
Sales in North America, in the main market for the company, PepsiCo divides into three segments. Here's how revenue grew here compared to last year: PepsiCo Beverages — Pepsi beverages, Tropicana, Mountain Dew and others — on 7%; Frito-Lay - chips and snacks, like Lay's and Cheetos, - on 6%; Quaker Foods — oatmeal and desserts — on 2%.
PepsiCo sales also increased in other regions: in Latin America— on 27%; in Europe — on 9%; in Africa, in the Middle East and South Asia, 33%; in the Asia-Pacific region and China — on 27%.
Like many others, PepsiCo faces inflationary pressures and supply chain disruptions. Due to the rising prices of goods and transportation, the company's costs are also increasing.. So, despite growing sales of chips and snacks, Frito-Lay segment operating income flat. In the Quaker Foods segment, operating profit even fell by 27%. To cut costs, The company plans to continue to raise prices for its products.
Logistics problems exacerbated by high consumer demand. After the lifting of restrictions, the demand for PepsiCo drinks in public catering and cinemas increased. According to the financial director of the company, PepsiCo had to "fight" for cans and bottles for its soda.
According to PepsiCo, in 2021 organic sales, that is, excluding exchange rates and structural changes, will grow on 8%. Previous Forecast - 6%.
Since the beginning of the year, the company's shares have grown by 4,7%. Almost the same amount was added by the sector of essential goods - 4,1%. Broad Market Index S&P 500 for the same period increased by 17,4%.
PepsiCo operating income in the third quarter, million dollars
| The change | ||
|---|---|---|
| PepsiCo Beverages | 773 | 11% |
| Frito-Lay | 1357 | 0% |
| Quaker Foods | 106 | −27% |
| Latin America | 393 | 57% |
| Europe | 439 | −8% |
| Africa, Middle East and South Asia | 312 | 63% |
| Asia-Pacific and China | 201 | 23% |
| Other operating expenses | −422 | 57% |
| Total | 3159 | 5% |
773
