- PepsiCo Inc (NASDAQ:PEP) reported second-quarter FY22 sales growth of 5.2% year-on-year to $20.23 billion, beating the consensus of $19.51 billion. Organic revenue growth was 13% for the quarter.
- Net revenue from Frito-Lay North America increased 14% Y/Y, Quaker Foods North America rose 17%, and PepsiCo Beverages North America fell 1%.
- Latin America sales rose 23% Y/Y, and Europe sales declined 8%.
- The gross profit increased 4.6% Y/Y to $10.8 billion, and the profit margin fell 35 basis points Y/Y to 53.4%.
- The operating margin was 10.3%, and operating income for the quarter declined 33.6% to $2.1 billion.
- The company held $5.5 billion in cash and equivalents as of June 11, 2022. Net cash provided by operating activities for the six months totaled $1.88 billion.
- Adjusted EPS of $1.86 beat the analyst consensus of $1.74.
- Pepsico expects FY22 total cash returns to shareholders of approximately $7.7 billion, comprised of dividends of $6.2 billion and share repurchases of $1.5 billion.
- Outlook: PepsiCo raised the FY22 organic revenue growth outlook to 10% (prior view 8%).
- PepsiCo continues to expect at least 8% core constant currency EPS growth. It continues to expect a 2% foreign exchange translation headwind to impact reported net revenue and core EPS growth.
- The forecast implies FY22 core EPS of $6.63, against the consensus of $6.66.
- Price Action: PEP shares are trading higher by 0.81% at $171.85 on the last check Tuesday.
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