PepsiCo (NASDAQ:PEP) gained in early trading on Thursday after beating earnings expectations and naming a new CFO.
Revenue was up 2.7% year-over-year to $23.9 billion. Organic sales rose 1.3% during the quarter to miss the consensus expectation for a rise of 2.1%. Organic sales growth was led by a 5.5% increase for the Europe, Middle East and Africa segment, while the PepsiCo Foods North America segment lagged with a 3% decline.
Total volume for both food and drinks fell 1% during the quarter.
Operating profit was down 11% during the quarter on a reported basis, driven lower by double-digit declines in the PepsiCo Beverages North America and LatAm Foods segments. Non-GAAP EPS of $2.29 topped the consensus estimate by $0.03.
Looking ahead, PepsiCo (NASDAQ:PEP) expects a low-single-digit increase in organic revenue for the full year and core constant currency EPS to be approximately even with the prior year. Total cash returns to shareholders are expected to be approximately $8.6 billion, comprised of dividends of $7.6 billion and share repurchases of $1.0 billion.
“As we look ahead to the balance of this year and beyond, our top priorities are to accelerate growth and aggressively optimize our cost structure. To accomplish this, we are introducing a strong pipeline of innovation to accelerate portfolio transformation, continuously sharpening our price pack architecture to provide good value to consumers, and right sizing our entire cost base to help fund our activities,” stated CEo Ramon Laguarta.
Alongside its earnings report, PepsiCo (PEP) also announced on Thursday that Chief Financial Officer Jamie Caulfield plans to retire. Walmart (WMT) U.S. CFO Steve Schmitt will succeed him on November 10.
Shares of PepsiCo (PEP) were up 1.9% in premarket trading. Coca-Cola (KO) edged 0.4% higher, and Keurig Dr Pepper (KDP) traded flat.