PepsiCo gains after organic sales shine in Q3
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PepsiCo (NASDAQ:PEP) gained in early trading on Tuesday after reporting organic sales rose 8.8% year-over-year in Q3 to top the consensus expectation for an increase of 8.3%. The organic sales growth was led by strong gains in Europe (+13%) and the Africa/Middle East and South Asia (+17%) region during the quarter.
Pricing drove growth during the quarter again, with volume flat for the beverages business and down 1.5% for the convenient foods business.
Operating profit was up 20% during the quarter, led by gains in the PepsiCo Beverages North America (+24%) and Latin America (+28%) segments. EPS came in at $2.25 vs. $2.15 consensus and $1.97 a year ago.
Looking ahead, PepsiCo (PEP) now expects full-year 2023 core constant currency EPS to increase 13% vs. +12% prior forecast and continues to expect full-year 2023 organic revenue to increase 10%. The EPS growth was slightly ahead of the consensus expectations of analysts.
CEO update: "We believe that our businesses can continue to perform well in the coming years with category growth normalizing, as we have made numerous investments in our brands, manufacturing capacity, go-to-market systems, supply chain, technology, and people, to execute against our strategic framework and modernize our company. Therefore, we expect our full-year 2024 organic revenue and core constant currency EPS growth to be towards the upper end of our long-term targets as we advance towards our vision to become the global leader in beverages and convenient foods by winning with pep+."
Shares of PepsiCo (PEP) rose 2.36% in premarket trading to $165.17. Coca-Cola (KO) shot up 1.32% and Keurig Dr Pepper (KDP) tracked 0.45% higher.

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