Last quarter, PepsiCo managed to raise its sales and profit higher than analysts’ forecasts. The food and beverage group maintained its market share in challenging market conditions.
Sustained demand
PepsiCo posted quarterly sales of nearly 23 billion dollars (19 billion euros), of which North America is still the multinational’s biggest market with more than half of its sales. However, sales there grew only slightly – and even fell when adjusted for exchange rates. In the EMEA region (Europe, the Middle East and Africa), sales were up 8 % to more than 4.5 billion dollars (4 billion euros).
The company sees continued demand for snacks and beverages, even in an economy that is under pressure globally. Consumers are shopping more critically due to increased prices, but PepsiCo manages to retain market share in several segments. The Lay’s, Doritos and Pepsi producer is introducing smaller packaging and diversifying its offerings to move with changing buying behaviour. The company sees that “consumers still highly value our brands”, so it is phasing in price increases gradually, while innovation should ensure further growth in a challenging market.
