PepsiCo management cut its growth estimates as sales volume for soft drinks and snacks continued to decline
PepsiCo management cut its full-year growth estimates as sales volume for soft drinks and snacks continued to decline.
Organic growth for the full year is expected to register a low single-digit rate, against PepsiCo’s previous target of 4% growth, the company’s management said in a statement.
Volumes in most businesses fell in Q3, leading organic growth to rise just 1.3%, with earnings per share to increase by 5% to $2.31, on a constant currency basis, compared to a year ago.
PepsiCo, which produces Lay’s crisps and Lipton teais under pressure as higher prices across the economy have forced consumers to cut back on spending, or switch to cheaper options or private label products.
The management of the company foresees that inflation will be contained, however, consumers will continue to be concerned about product prices.
However, the Pepsi producer predicts that earnings will grow at least 8% in 2024on a constant exchange basis, as stated by the company’s CEO, Ramón Laguarta.
Source: Skai
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