(Reuters) – PepsiCo reported weaker-than-expected quarterly revenue on Thursday as demand for its snacks and sodas weakened, mainly in the United States, its biggest market.
Second-quarter revenue came in at $22.50 billion (€20.73 billion), up 0.8 percent year-on-year but below analysts’ expectations of $22.57 billion.
PepsiCo also adjusted its annual organic revenue growth target to around 4% from at least 4% previously.
“They’re on the lower side of expectations, they’re seeing the weakness and we’ve been talking about that for a number of quarters now and it seems to be continuing, particularly among lower-income consumers,” said Don Nesbitt, portfolio manager at F/m Investments.
PepsiCo operated at a 5% increase in average product prices over the period, but organic volumes fell by 3%.
Still, reduced production and other expenses related to pandemic spikes, as well as the impact of price increases, helped PepsiCo report adjusted earnings of $2.28 per share, beating analysts’ expectations of $2.16 in an LSEG consensus.
(Reporting by Ananya Mariam Rajesh in Bangalore; Editing by Augustin Turpin; by Elena Smirnova)
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