PepsiCo has revised its financial predictions for 2020, after seeing a better third-quarter than expected. The company’s revenue has grown by 5.3% over Q3 thanks to a rebound in drinks sales and a boom in demand for the company’s snacks, according to a report by ComprarAcciones.
This brings the total earnings of the food and beverages giant to $18.09 billion (£13.85B). At the same time, the group’s net profit has increased by 9.1% while its earnings per share have risen by 10%. PepsiCo now predicts that 2020’s full-year revenues will increase by 4% overall on an organic basis. This shows how the company has successfully bounced back from a slump earlier in the year, when sales were harmed by the corona pandemic.
Consumers still reaching for comfort food
PepsiCo’s global food and snacks sectors have thrived in Q3, delivering 6% organic revenue growth, as consumers working from home during the pandemic continue to reach for comfort food classics such as Quakers’ Macaroni & Cheese and Frito-Lay’s Cheetos, Tostitos and Doritos. According to Nielsen, a New York-based data and measurement firm, total salty snack consumption increased by 19.4% compared to 2019 while sweet snack consumption went up by 16.1%.
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Fewer fizzy drinks in Q2
The beverages business sector of PepsiCo was harder hit by the effects of the pandemic. This is likely due to the fact that bars and restaurants were shut, impacting out of home consumption. While PepsiCo’s drinks showed an initial 7% dip in the North American segment in Q2, this has recovered somewhat in Q3, showing a 3% climb. By comparison, rival beverages company Coca-Cola, reported a 33% drop in earnings during Q2, marking its largest quarterly revenue decline in 30 years. Heineken Holding also saw a fall in numbers, reporting a $249.9 million (£191.28M) net loss during Q1 2020.