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Mar 21, 2020
PepsiCo Q1 2020 Earnings Report
PepsiCo's Q1 2020 earnings were reported, showing revenue growth and strategic acquisitions amidst COVID-19 uncertainties.
Key Takeaways
PepsiCo reported strong Q1 2020 results with a 7.7% increase in net revenue and a 7.9% increase in organic revenue. Despite the strong performance, the company withdrew its full-year 2020 guidance due to uncertainties related to COVID-19. PepsiCo closed the acquisition of Rockstar Energy Beverages and entered a distribution agreement with Vital Pharmaceuticals for Bang Energy drinks.
PepsiCo's net revenue grew by 7.7% in Q1 2020.
Organic revenue growth reached 7.9% in Q1 2020.
The company closed its acquisition of Rockstar Energy Beverages.
PepsiCo withdrew its full-year 2020 guidance due to COVID-19 uncertainties.
PepsiCo
PepsiCo
PepsiCo Revenue by Segment
PepsiCo Revenue by Geographic Location
Revenue by Segment
Frito-Lay NA Revenue
CapyFin.comPBNA Revenue
CapyFin.comEurope, Middle East & Africa Revenue
CapyFin.comLatin America Foods Revenue
CapyFin.comAsia Pacific Foods Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comLatin America Revenue
CapyFin.comEurope, Middle East & Africa Revenue
CapyFin.comAsia Pacific Foods Revenue
CapyFin.com Forward Guidance
Due to uncertainties associated with COVID-19, the company's previous financial outlook for fiscal year 2020 is no longer applicable. However, the company expects a core effective tax rate of approximately 21% and total cash returns to shareholders of approximately $7.5 billion. A 3 to 4 percentage-point foreign exchange translation headwind is expected to negatively impact reported net revenue and core EPS performance.
Positive Outlook
- Expects a core effective tax rate of approximately 21 percent.
- Total cash returns to shareholders of approximately $7.5 billion.
- Dividends of $5.5 billion.
- Share repurchases of $2 billion.
- Strong balance sheet, highly cash generative business and ample liquidity.
Challenges Ahead
- Magnitude and duration of the COVID-19 pandemic on our business.
- Uncertainties in geographies, retail channels and consumer behaviors.
- Previous financial outlook regarding fiscal year 2020 is no longer applicable.
- 3 to 4 percentage-point foreign exchange translation headwind to negatively impact reported net revenue.
- 3 to 4 percentage-point foreign exchange translation headwind to negatively impact core EPS performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income