Mar 23, 2024

PepsiCo Q1 2024 Earnings Report

PepsiCo reported mixed Q1 2024 results with strong international performance offset by challenges in North America.

Key Takeaways

PepsiCo's Q1 2024 showed resilience with net revenue growth of 2.3% and organic revenue growth of 2.7%, driven by international strength. EPS grew by 6% to $1.48, and core EPS reached $1.61. The company reaffirmed its 2024 financial guidance, expecting at least 4% organic revenue growth and at least 8% core constant currency EPS growth.

Net revenue grew by 2.3%, with a 0.5% negative impact from foreign exchange.

Organic revenue grew by 2.7%.

EPS increased by 6% to $1.48, while core EPS was $1.61.

Company reaffirms full-year guidance of at least 4% organic revenue growth and at least 8% core constant currency EPS growth.

Total Revenue
$18.3B
Previous year: $17.8B
+2.3%
EPS
$1.61
Previous year: $1.5
+7.3%
Organic Revenue Growth
2.7%
Previous year: 14.3%
-81.1%
Gross Profit
$10B
Previous year: $9.9B
+1.0%
Cash and Equivalents
$8.05B
Previous year: $4.77B
+68.7%
Free Cash Flow
-$1.66B
Total Assets
$100B
Previous year: $93B
+7.5%

PepsiCo

PepsiCo

PepsiCo Revenue by Segment

Forward Guidance

PepsiCo expects at least 4 percent increase in organic revenue and at least 8 percent increase in core constant currency EPS for 2024. They also anticipate total cash returns to shareholders of approximately $8.2 billion, including dividends of $7.2 billion and share repurchases of $1.0 billion.

Positive Outlook

  • At least 4 percent increase in organic revenue
  • At least 8 percent increase in core constant currency EPS
  • Core annual effective tax rate of 20 percent
  • Total cash returns to shareholders of approximately $8.2 billion
  • Dividends of $7.2 billion

Challenges Ahead

  • Approximate 1-percentage-point foreign exchange translation headwind to impact reported net revenue
  • Approximate 1-percentage-point foreign exchange translation headwind to impact core EPS growth
  • Unpredictability of future changes in foreign exchange rates
  • Unpredictability of future changes in commodity prices
  • Unable to reconcile full year projected 2024 organic revenue growth to our full year projected 2024 reported net revenue growth

Revenue & Expenses

Visualization of income flow from segment revenue to net income