PepsiCo booked a 5% drop in third-quarter earnings today (17 October) as it increased its spending behind flagship brands.
The company said earnings totalled US$1.9bn, or $1.21 per share, in the three months to 8 September, down from $2bn in the comparable period of last year. Core EPS totalled $1.20 in the period, beating consensus estimates of $1.16 per share.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Core operating profit was down 8%, due to higher input costs, increased advertising spending and higher pension costs.
Profits were hit by higher levels of investment in the business as part of a three-year turnaround push, PepsiCo revealed. The maker of Quaker oats and Frito-Lay snacks has increased its investment in advertising it looks to bolster the performance of its key brands.
Excluding the impact of currency exchange and divestures, revenue was up by a total of 5% in the quarter. Volumes contributed 1% and pricing action contributed 4%.
Reported net revenue declined 5% to $16.65bn as structural changes – particularly in Mexico and China – weighed 5% and currency exchange trimmed another 5% off sales.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
