Jun 13, 2020

PepsiCo Q2 2020 Earnings Report

PepsiCo's Q2 2020 results were reported, showing resilience in the global snacks and foods business despite challenges from the COVID-19 pandemic.

Key Takeaways

PepsiCo reported Q2 2020 results, with performance impacted by the COVID-19 pandemic but demonstrating resilience in the global snacks and foods business. The company is not providing a financial outlook for fiscal year 2020 due to continued uncertainties.

PepsiCo's businesses performed relatively well despite COVID-19 challenges.

Global snacks and foods business showed notable resilience.

Business performance improved as restrictions eased during the quarter.

The company believes it has ample liquidity and flexibility.

Total Revenue
$15.9B
Previous year: $16.4B
-3.1%
EPS
$1.32
Previous year: $1.54
-14.3%
Organic Revenue Growth
-0%
Gross Profit
$8.86B
Previous year: $9.05B
-2.1%
Cash and Equivalents
$8.93B
Previous year: $3.29B
+171.1%
Total Assets
$89.5B
Previous year: $75.1B
+19.2%

PepsiCo

PepsiCo

PepsiCo Revenue by Segment

Forward Guidance

PepsiCo is not providing a financial outlook for fiscal year 2020 due to continued uncertainties associated with the COVID-19 pandemic, but expects a core effective tax rate of approximately 21 percent and total cash returns to shareholders of approximately $7.5 billion.

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.
  • Expects a 3 percentage-point foreign exchange translation headwind

Revenue & Expenses

Visualization of income flow from segment revenue to net income