PepsiCo sees strong overseas demand but a lackluster North American performance in the third quarter
PepsiCo reported better-than-expected revenue in the third quarter despite lackluster North American demand.
Net revenue rose 5.6% to $25.27 billion in the July-September period. Wall Street had expected revenue of $24.95, according to analysts polled by FactSet.
The company, based in The Purchase, New York, said its global snack food volumes increased 4%, the highest rate of growth since 2021. That was largely due to its international business, which makes up 41% of the company's revenue.
World Cup-related demand for Lay's snacks was strong, the company said, and PepsiCo gained share in key markets like China and Brazil.
But PepsiCo's North American results were weaker, with Frito-Lay snack food volumes flat compared to the same period last year and beverage volumes down 2%. PepsiCo said growth in sales of U.S. salty snacks was offset by sales declines in Canada.
Net income rose 2% to $2.34. That also beat analyst expectations of $2.29.
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