PepsiCo’s Revenue, Earnings Driven By Snacks In Wake Of Coronavirus Pandemic

PepsiCo’s (PEP) snacks received a boost in sales during the coronavirus pandemic as more consumers stayed home and, apparently, snacked. The company announced on Thursday that it saw specific product sales grow by 5.3% for the third quarter.

The snack and beverage company saw good growth in its Frito-Lay and Quaker Food business units, increasing by 6%. Specifically, PepsiCo saw the Tostitos, Cheetos, Ruffles, and Doritos brands’ sales increase in its Frito-Lay category. Quaker Foods experienced a double-digit sales boom in pasta and macaroni and cheese items, with pancake mixes and syrup sales increasing at a high rate, PepsiCo said.

PepsiCo also saw its organic revenue increase by 4.2%, which Chairman and CEO Ramon Laguarta said was a reflection of the company’s “continued strength” in global snacks and food as well as an improvement in its global beverage business.

“Despite the ongoing volatility and complexity in our operating environment, I believe our quarter performance reinforces the diversification of our portfolio, the resilience and agility of our teams across every continent and demonstrates our ability to support our customers and communities during their time of need while also delivering good results for our shareholders,” Laguarta said.

PepsiCo’s earnings per share also grew for the quarter with revenue reaching $18.09 billion. Net income was $2.29 billion, up from $2.1 billion a year earlier.

The company’s beverage line in North America also increased sales by 3%, while internationally, it grew by 4%, driven primarily by its bubly, Lipton, and Starbucks product lines, as well as its Gatorade, Mountain Dew, and Tropicana brands.

Fiscal 2020 guidance from PepsiCo included an organic revenue increase of 4% and $5.50 earnings per share, which is a decrease of 38 cents from its previous expectations.

Shares of PepsiCo were trading at $140.00 as of premarket open on Thursday, up $1.40 or 1.01%.