PepsiCo forecasts 2024 revenue growth of 4%, below estimates
Investing.com — PepsiCo (NASDAQ:PEP) has unveiled a full-year forecast for organic revenue growth of at least 4%, below Bloomberg consensus expectations of 5.2%, as the food and beverage group flagged waning benefits from elevated prices.
Soaring post-COVID inflation has helped to fuel top-line growth at Pepsi, although these price gains have begun to fade due in part to higher interest rates.
In a statement, Chief Executive Officer Ramon Laguarta said marketplace conditions are «changing» heading into its 2024 fiscal year, with shopping behaviors reverting «to pre-pandemic norms and net revenue realization [moderating] as inflationary pressures are expected to abate.»
Shares in the Doritos chips owner slipped in premarket U.S. trading on Friday.
Core per-share earnings grew to $1.78 from $1.67 year-on-year, but were still under expectations. An uptick in costs related to items like cooking oil and seasonal ingredients dented income by ten percentage points at its crucial Frito-Lay North America division.
Laguarta said he was pleased with Pepsi's overall performance in 2023, but noted the impact of macroeconomic volatility, geopolitical tensions and international conflicts.
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