PEP

PepsiCo posts rare sales miss as price hikes dent demand

Credit: REUTERS/MARIO ANZUONI

Adds shares in paragraph 2 and background

Feb 9 (Reuters) - PepsiCo PEP.O fell short of Wall Street estimates for fourth-quarter revenue and forecast weak organic growth for 2024 as the soda and snacks giant's multiple price hikes crimp demand for its juices and Lay's crisps.

The company's shares fell 1.6% in premarket trading.

Net revenue fell to $27.85 billion in the quarter from $28 billion a year earlier, while analysts on average had estimated $28.40 billion, according to LSEG data.

PepsiCo and other retailers are now facing some resistance to the multiple price hikes undertaken since the pandemic to fend off higher costs caused by supply chain disruptions.

CarrefourCARR.PA, Europe's largest food retailer, in January asserted it would not be stocking PepsiCo's brands "due to unacceptable price increases".

PepsiCo's average prices jumped 9% for the quarter ended Dec. 30, while organic volume slipped 4%.

"Category growth rates are normalizing as consumer behaviors largely revert to pre-pandemic norms and net revenue realization moderates as inflationary pressures are expected to abate," CEO Ramon Laguarta said in a statement.

The company also forecast annual organic revenue growth of at least 4% compared to the 9.5% growth reported for fiscal 2023.

PepsiCo expects fiscal 2024 core earnings per share of $8.15, compared to analysts' expectations of $8.14.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Sriraj Kalluvila)

((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.