PepsiCo has performed better than expected last quarter: although its food volume sold fell by 0.5 %, partly due to a major recall, revenue rose 2.3 %.
Salmonella recall
The Quaker, Lay’s and Pepsi producer saw its net sales rise 2.3 % to 18.25 billion dollars (17.1 billion euros) last quarter. On an organic basis, sales were even up 2.7 %. Meanwhile, net profit climbed from 1.93 to 2.04 billion dollars (1.9 billion euros).
This growth comes despite its volumes remaining under pressure. In the food division, volume fell 0.5 %, while there was stagnation in the beverage division. The sharp price increases since inflation obviously play a big role, but in December and January, oats brand Quaker had to conduct a major recall in the United States due to a salmonella contamination. The factory in question has since been closed and will not reopen.
In Europe, volume did increase – despite higher prices: Pepsico sold 7 % more drinks and 2 % more snacks there. The group expects normalisation and moderate category growth compared to previous years. However, consumers will continue to watch their purchases and budgets. For the full year, the brand manufacturer is now assuming at least 4 % more sales.
