PepsiCo on the rise in the first quarter of 2021
Recorded net revenues of 2.4%, the company expects further increases in Q2
PepsiCo reported organic growth in net revenues of 2.4% in the first quarter and expects a further increase in the second quarter thanks to reopening in the restaurant channel. The company reported first-quarter net revenues of $ 14.82 billion, up 6.8%, also due to the acquisitions of Chinese snack company Be & Cheery and Pioneer Foods in South Africa. Operating profit stood at $ 2.31 billion, up 20% from last year's $ 1.92 billion. "Looking forward, we expect our organic revenue growth to accelerate in the second quarter", said Ramon Laguarta , president and CEO of PepsiCo, and Hugh Johnston, vice president of PepsiCo and CFO. “We assume that thanks to vaccination developments, people will be more free to travel. This should go in favor of the catering channel".
PepsiCo's Frito-Lay North America unit recorded organic revenue growth of 3% to $ 4.24 billion, thanks to new additions such as Doritos 3D Crunch and Cheetos Crunch Pop Mix. In the quarter ended March 20, organic revenue increased 1% in the Quaker Foods America unit to $ 646 million. Sales of PepsiCo Beverages in North America increased 2% to $ 5.07 billion. Unit volumes decreased in the carbonated soft drinks and water segment, however the company performed well in the Gatorade sports drinks segment.
Organic revenues from Africa, the Middle East and South Asia decreased by 1% and those of Europe remained unchanged from the previous year. In Latin America, PepsiCo's organic revenues increased 3%, while the Asia Pacific, Australia and New Zealand and China segments increased 18% thanks to large snack sales.
"We are pleased with our results for the first quarter, as we have successfully overcome the challenges of this complex period; we have recovered ground in many of our international markets where there had been business interruptions", Laguarta concluded.
EFA News - European Food Agency